Outsourcing your call center to the Philippines offers a multitude of benefits that can significantly enhance your business operations. In this blog, we will detail the top reasons why you should outsource your call center to the Philippines.
1. Cost Efficiency
Outsourcing your call center to the Philippines is a cost-saving measure that can significantly improve your bottom line. Businesses can save more than 40% on operational costs by outsourcing to the Philippines. This is primarily due to lower labor costs in the region.
Lower Labor Costs
Many companies outsource to save money through reduced labor costs, budget allocation for recruitment, operational costs, and other overhead costs. A survey found that outsourcing external services assigned to one or more tasks can help your business save up to 70% in labor costs.
Reduced Overhead
When you outsource your call center to the Philippines, you won't need to worry about office space, employee benefits, or equipment.
2. Cultural Compatibility
The Philippines has a rich history of colonization by the Spanish, Americans, and Japanese, which has left a lasting impact on its cultural landscape. This cultural affinity makes the Philippines an ideal location for outsourcing services.
Filipino call center agents are known for their adaptability and ability to connect with customers on a personal level.
3. English Proficiency
Most Filipinos learn English from a young age and often consider it their primary language—even if they know Filipino or another local dialect.
Global Rankings
In 2022, the Philippines ranked 22nd worldwide on the EF English Proficiency Index, scoring 578. The country is only second to Singapore in Asia.
Communication Skills
Filipinos tend to use grammar comfortably when speaking, so communicating with foreign customers won’t be difficult for them at all! This fluency makes them highly effective in handling customer service interactions.
4. Highly Skilled Workforce
Abundant Talent Pool
The Philippines is home to a vast pool of talented individuals who are known for their exceptional skills in customer service.
Diverse Skill Sets
This large workforce also means you have more opportunities to access employees with diverse skill sets, including technical and domain expertise, legal or medical expertise, IT and application management skills, and more. When you outsource to the Philippines, you get both a large workforce and a highly skilled, diverse, and educated workforce.
Continuous Supply of Graduates
Every year, local universities and colleges produce an additional 500,000+ to the pool of skilled and qualified workers. Filipinos have a natural aptitude for almost any work you give them, which amplifies their value as workers.
5. Flexible Workforce
The Philippines is renowned for its flexible workforce, making it a top choice for companies looking to outsource. Filipino workers are known for their resilience and capability to work under flexible time shifts and schedules. This adaptability ensures that businesses can meet their operational needs without compromising on quality or efficiency.
Scalability
One of the key advantages of outsourcing to the Philippines is the ability to scale your team quickly and affordably. The large workforce means you have more opportunities to access employees with diverse skill sets, including technical and domain expertise.
Diverse Skill Sets
The diverse skill sets available in the Filipino workforce include technical and domain expertise, legal or medical expertise, IT and application management skills, and more.
Cost-Effective Flexibility
Since labor is much more affordable, the Philippines offers more flexibility within the team. This allows you to build a remote or hybrid call center team to further reduce costs or improve flexibility. Call centers in the Philippines can help you build a team that meets your specific requirements.
6. Reduced Legal Liabilities and Management Issues
Employing staff in any country comes with a lot of regulation, compliance, administration, tax, and cost implications. Hiring offshore staff in the Philippines means that you can protect yourself from the exposure and recourse of employing people in-house or directly.
7. Data Security and Privacy
The Philippines has built an incredibly sophisticated call center industry with a strong regulatory environment in support of the sector. Data privacy is one of the primary differentiators in business acquisition in the country, especially after the enactment of the Data Privacy Act of 2012.
8. 24/7 Staffing - Timezone Neutral
The Philippine workforce is highly geared towards 24/7 coverage.
Benefits of 24/7 Staffing
- Improved responsiveness: With 24/7 support, you’ll be able to reduce communication gaps and improve responsiveness. This not only enhances customer service and satisfaction but also strengthens backend processes by reducing backlogs and speeding up time to answer and FCR (First Call Resolution).
- Cost-effective overnight support: Since the time zones in the Philippines are far from those in the US, it’s easier—and cheaper—to offer overnight support, either in addition to an in-house team or with a fully outsourced team.
Coverage Across Major Markets
The single biggest client country in the Philippines is the USA, and there is a 12-hour time difference between the two countries. About 60% of the outsourcing workforce in the Philippines works the night shift to cover the US hours. This makes it possible to provide seamless support across major markets like the USA, Australia, and Canada.
9. Economic Growth
The Philippines has emerged as a significant player in the global BPO industry, contributing substantially to the country's economic growth. According to the IT and Business Process Association of the Philippines (IBPAP), the BPO industry saw revenue increase by 10.3% to $32.5 billion, and staff count rise by 8.4% to 1.57 million. This growth has led to stronger purchasing power for Filipinos and a more robust economy overall.
Foreign investors stand to benefit from a business environment that is conducive to growth and scalability. The Philippines ended 2023 on a high note, being the fastest-growing economy across Southeast Asia with a growth rate of 5.6 percent—just shy of the global average.
10. Track Record of the BPO Industry
The business process outsourcing (BPO) industry in the Philippines began in 1992 and has been in existence for over 25 years. Its total revenue has since increased tenfold. The country’s BPO sector has a global market share of 10%, which is a three-fold increase since 2004. This global market share is estimated to be at 15% by 2022.
Early Pioneers
Sykes Asia, Convergys, People Support, and Accenture were the first multinational companies to establish operations in the Philippines.
Economic Impact
- The BPO industry has been instrumental in improving the economic status of many Filipinos.
- It provides Filipino families with necessities and has helped solve unemployment issues.
- The industry adds as much as $30 billion to the Philippine economy.
Resilience
The BPO sector remains strong even during the height of the pandemic that affected millions of people and businesses worldwide.
Government and Industry Collaboration
Through the collaboration of the government and various companies, the BPO Industry in the Philippines is here to stay.
Conclusion
From cost efficiency and cultural compatibility to a highly skilled and English-proficient workforce, the advantages are clear. The Philippines has established itself as a premier outsourcing destination, providing businesses with the opportunity to improve customer service, increase sales, and achieve operational excellence. By leveraging the unique strengths of the Filipino workforce, companies can ensure a seamless and effective customer experience, ultimately driving growth and success.
One Contact Center
One Contact Center offers BPO services for small businesses, startups, and international brands. If you’re keen on boosting your customer experience with reliable support services, please, contact us today. We’ll be more than happy to help!
