Knowledge Center Article

The Many Benefits of Outsourcing Call Centers to the Philippines 

By Grace N / 5 July 2023

Economic downturns driven by rising inflation are presenting challenges for businesses in the US and other parts of the world. With inflation comes reduced spending, which leads to decreased sales and, ultimately, lower revenue and profits for companies of all sizes. This inflation-driven vicious cycle can significantly impact a company’s growth, success, and bottom line.

However, when the financial going gets tough, smart companies respond by taking aggressive measures to cut costs and improve operating efficiencies. For companies in the US and other countries, outsourcing front office business processes like call centers to the Philippines offers many perks that go beyond cost-cutting. Let’s look at some of the many benefits of outsourcing call centers to the Philippines.

Significant savings on labor

Substantial cost savings are and will always be the main reason companies invest in outsourcing to the Philippines. The Philippines’ labor costs are generally lower than those in the US and other countries. Additionally, Philippine providers take responsibility for hiring, training, and managing call center agents, as well as employee concerns like salaries, health care, and benefits. Taking advantage of cheaper workforce costs can save outsourcing companies a considerable amount on staffing.

A skilled and educated workforce

It’s important to note that when outsourcing to contact centers to the Philippines, cheaper labor does not mean cheaper talent. The Philippines boasts a skilled call center workforce that is young, tech-savvy, and well-schooled in succeeding in the lucrative Philippine outsourcing industry. This is partly due to students having access to top-level education and government-supported curricula aimed specifically at careers in the outsourcing industry.

Heightened adoption of artificial intelligence (AI)

Picking up on global business trends, call centers in the Philippines are increasingly adopting AI-powered technologies to improve business operations and customer satisfaction. By automating basic call center tasks, human agents can achieve faster response times and better first-call resolution, important call center metrics that can positively impact the customer experience and client satisfaction. In fact, Philippine contact center outsourcing providers see a 61% improvement in customer satisfaction when they pair human agents with AI technology.

Round-the-clock service and support

Staff in Philippine call centers work day and night shifts, so work never stops. This enables Philippine call centers to provide 24/7 services to their clients worldwide. Round-the-clock availability can effectively double business capacity overnight. Instant accessibility also increases the quality of customer support, as Philippine call center agents can address customer concerns, questions, and issues at any time of day or night, as well as on weekends. Unbroken support can dramatically affect the customer experience and boost customer satisfaction, loyalty, and retention.

Savings on secondary costs

Outsourcing call centers to the Philippines can alleviate companies from the many expenses of operating in-house contact center operations. The Philippine BPO provider covers all tertiary costs of essentials like office space, legal and HR, office equipment, taxes, and overheads like WIFI and electricity. They also supply the latest computers, technology, and software, which spares outsourcing companies from buying and upgrading their own. By handing off secondary costs to call center providers in the Philippines, outsourcing companies can save up to 60% on operation expenses.

Outsourcing to the Philippines makes good business sense

Given the benefits highlighted here, outsourcing call centers to the Philippines offers companies in the US and the rest of the world an excellent return on investment. Since the costs of call centers in the Philippines can be 40-50% lower than those in other countries, outsourcing to the Philippines is a logical cost-cutting solution for global companies of all sizes.

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Success in outsourcing isn't a matter of chance, but rather the result of a meticulously defined process, a formula that Fortune 500 companies have diligently honed over time. This rigor is a significant factor in the rarity of failures within these industry titans' outsourced programs.

Having spent over two decades partnering with and delivering Business Process Outsourcing (BPO) solutions to Fortune 500 clients, John possesses an in-depth understanding of this intricate process. His comprehensive approach incorporates an exhaustive assessment of outsourcing requirements, precise vendor sourcing, and a robust program management strategy.

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