Businesses of all sizes and in almost every industry have discovered the advantages of outsourcing to the Philippines. The country offers lower operational and labor costs along with a steady stream of college-educated candidates.
Outsourcing call centers first started opening in the Philippines in 1992. Three years later, the government established the Philippine Economic Zone Authority under the Special Economic Zone Act.
The act provides tax incentives and other benefits to the business process outsourcing (BPO) industry. 25 years later, the BPO industry accounts for over a million jobs in the Philippines, which includes 27% of all new jobs.
The growth of call centers in the Philippines comes from the increasing demand for reliable BPO solutions in some of the top markets in the world. From small-sized businesses to multinational organizations, businesses are discovering the value of outsourcing to the Philippines.
You also have the chance to streamline your business and improve customer service. Grow your business with this complete guide on outsourcing to the Philippines.
Here’s what this article contains:
This handy guide will help you decide if outsourcing to the Philippines is the right choice for your business. Through this, you will learn about the following:
- Why Outsource to the Philippines?
- How to Outsource Your Business Processes
- How Do You Define Your Outsourcing Needs
- How to Choose the Best Outsourcing Company
- How to Prepare for Outsourcing
- Things to Avoid When Outsourcing
- What Type of Services Can You Outsource?
Why Outsource to the Philippines?
Outsourcing is a common practice for all types of businesses. About 68% of US consumer products companies rely on business process outsourcing. Contracting work out or abroad reduces the demand for internal resources. This gives your business the flexibility to focus on core activities.
Working with a BPO company also gives you the freedom to grow your business. Expanding your services or entering new markets increases your need for customer support. By outsourcing to a call center, you avoid the need for additional hiring, equipment purchases, or even a new location.
Philippines outsourcing enhances these advantages while providing many additional benefits to your business. Explore the primary reasons why companies in the US, the UK, Australia, Canada, and Europe frequently outsource to the Philippines:
- High level of English proficiency
- College-educated workforce
- A stable industry with government support
- 24/7/365 availability
- Cost-effective outsourcing solutions
- Reduced legal liability
- A wide range of BPO services
India remains the largest provider of outsourcing services. However, the Philippines is quickly becoming the leader in BPO solutions. 21 out of the 25 top outsourced call center projects are handled by companies in the Philippines. TELUS, the largest telecommunications company in Canada, currently outsources 2500 call center jobs to the Philippines.
Here is a closer look at why businesses are sending their jobs to the Philippines.
1. High Level of English Proficiency
With Philippines outsourcing, you do not need to worry about things getting lost in translation. More than 92% of Filipinos speak English as a second language.
Workers in the Philippines are also well acquainted with Western customs and manners of speech. During the colonial era, the island nation was ruled by the Spanish, the Americans, and the Japanese, which has led to a diverse culture with a variety of influences.
Thanks to the unique history of the Philippines and close relations with the Western world, Filipinos have a high level of English proficiency. For two consecutive years, the Philippines had the highest Business English Index (BEI) score in the world.
The BEI is published by Global English based on extensive studies of workforces around the world. In 2012, the Philippines achieved a BEI score of 7.11. Norway came second with a score of 6.54.
The Philippines remains the most proficient in English compared to other Asian countries, including India. While the Philippines maintains a high proficiency score, India has a moderate proficiency score.
2. College-Educated Workforce
Call center outsourcing companies in the Philippines employ college-educated workers and the country has a large talent pool to draw from. Each year, over 150,000 students enroll in state and local colleges or universities in the Philippines. The number of college-bound students is likely to continue increasing.
The Department of Education expects over 27.7 million students to enroll in basic education institutions in 2020, an increase of 4.2 million compared to last year. A college-educated workforce ensures that there is no shortage of candidates to fulfill your outsourcing needs. Philippines outsourcing companies can easily attract new employees and have thorough interview processes to select the best candidates.
With educated workers who speak English fluently, the Philippines stands out as a reliable source for call center outsourcing, ensuring a superior level of customer satisfaction.
3. Stable Industry with Government Support
Philippines outsourcing companies are in high demand around the world. The BPO industry is thriving in the country, providing foreign businesses with a stable source for outsource staffing. Experts predict that the Filipino BPO industry will double between 2019 and 2020 with the United States as the leading user of outsourcing services.
Outsourcing to the Philippines is a sustainable solution. The company that you hire today can continue to meet your needs well into the future. You receive scalable services that grow to accommodate your outsource staffing requirements.
4. 24/7/365 Availability
While the Philippines may be in a different time zone, your call center can remain open 24/7. Philippines Call center companies have experience dealing with customers in every corner of the world. Staff work in shifts to cover time zones in any country.
As mentioned, the US is the leading client-country for Philippines BPO outsourcing. There is a 12-hour time difference between the two countries. Filipinos in the BPO industry understand and accept the need for night shifts to provide 24/7 coverage.
5. Cost-Effective Outsourcing Solutions
Working with an outsourcing company saves you money compared to hiring locally. On average, businesses reduce operational costs by 60% when outsourcing. Many factors help reduce the cost of call center outsourcing to the Philippines. The United States, the UK, and Australia all have high wages, which drives up the cost of expanding your customer support staff.
BPO companies can also deliver lower costs due to their efficiency. At Digital Minds BPO, employees use the latest call center equipment and software. They also work in comfortable, state-of-the-art facilities. These benefits led to increased performance without increased costs.
6. Reduced Legal Liability
When you outsource to a Philippines call center, the call center company assumes legal responsibility for the employees. You can expand your customer support team without the typical human resources (HR) requirements.
The BPO company also assumes responsibility for complying with data privacy regulations. The Data Privacy Act protects personal information, privileged information, and sensitive personal information. Violations of the act may result in fines to the BPO company, which limits your overall legal liability.
7. A Wide Range of BPO Services
BPO companies, such as Digital Minds BPO, cover more than just call center services. Outsourcing companies provide a wide range of solutions to help streamline your operations. Along with customer support, you can rely on Philippines outsourcing for data entry, human resources, finance, technical support, production support, and even legal processes.
Outsourcing companies simplify your back-office operations. This includes the administrative tasks that tend to take up most of your employees’ time. By offshoring these tasks to a reputable BPO company, you free up internal resources so your staff can focus on core processes.
How to Outsource Your Business Processes
Now that you understand the benefits of working with a Philippines outsourcing company, how do you get started? Here is how the typical process works for outsourcing to the Philippines:
- Choose the services you want to outsource
- Set your business goals for outsourcing
- Book a consultation with a BPO company
- Review the proposal from the BPO company
- Allow the BPO company to recruit employees
- Set a start date for your new outsourced team
The first step is to identify the services that you require. Decide which business operations you want to outsource. From outbound call center services to technical support, Filipino BPO companies offer a variety of services.
You should also review your business goals for outsourcing. What do you hope to achieve by offshoring some of your operations to another company? Some businesses outsource to focus on growth. Others may use outsourcing to deal with a sudden spike in customer demand.
After assessing your needs, book a consultation with a reliable BPO company. You can discuss your requirements and workflow to ensure that the company is the right fit. You will then receive a proposal from the BPO company for your project.
When you accept the proposal, the BPO company begins recruiting from the vast pool of college-educated Filipinos. In most cases, the client is welcome to provide input on the interview process.
With your new team assembled, the last step is to set a start date. After your team starts working, the BPO company continues to monitor their performance to ensure your complete satisfaction.
How Do You Define Your Outsourcing Needs?
One of the most important steps to outsourcing is matching your needs to the right BPO Services provider. This requires you to clearly define your expectations. Take the time to draft a detailed statement that explains the scope and schedule of your outsourcing project. BPO providers require an accurate description of your needs to provide you with a realistic proposal.
Your statement may also include details related to your business processes. Explain the services that you want to outsource in as much detail as you can. This information can help with the development of the training program for new employees, ensuring that your outsourcing staff can match the level of service that you expect.
How to Choose the Best Outsourcing Company?
Every business has unique requirements for call center outsourcing projects. You may require employees with specialized technical training or enough employees to handle a large volume of calls. To ensure that the company you hire can meet your needs, pay attention to these features:
Thanks to a growing need for Philippines outsourcing, new BPO companies continue to emerge. However, many business owners prefer to hire companies with a long track record of excellence. Working with an experienced company can give you greater peace of mind and security.
The company that you work with should also provide reliable results. Review some of the company’s past projects or inquire about other clients. Learn what you can about the company’s background before accepting a proposal.
Communication and workflow are also important details to review. Hiring a BPO company should simplify your business operations instead of complicating them. Find out how the BPO company operates. After learning more about their processes, you may have a better idea if they will work well with your business processes.
You should also choose a BPO company with the right talent. The best BPO companies focus on hiring college graduates. For example, Digital Minds BPO only hires college-educated candidates from the top schools in the Philippines. All staff also complete comprehensive training programs.
One of the final considerations is your budget. Keep in mind that most BPO companies save you money. The average outsourcing project reduces operational costs by 60% or more. After you consult with a Filipino BPO company, you should receive a proposal. Review the cost estimates in the proposal to ensure that they fit your budget.
How to Prepare for Outsourcing
After selecting the right Philippines outsourcing company, you should prepare for the transition. For example, you may need to alter your normal business operations. If you are outsourcing live chat support or other customer-related call center services, you may need to direct your existing staff to complete different tasks.
You should also determine how outsourcing may impact your current software. Can the outsourcing company access data from your customer relationship management (CRM) solutions? These details will influence how the call center supports your daily operations.
Preparing for the transition should involve the entire staff. Make sure that everyone is aware of the process and the start date. Throughout the transition, you should actively communicate with your BPO provider. Continue to monitor the interview process and ensure that the provider understands your company policies and procedures.
Things to Avoid When Outsourcing
Several common mistakes may limit the advantages of hiring outsourcing services. From finding the right BPO provider to monitoring the performance of your outsourced staff, pay attention to these common mistakes throughout the outsourcing process:
- Not thoroughly reviewing the BPO provider
- Failing to clearly define your project
- Failing to communicate properly
- Micromanaging your outsourced staff
- Not preparing for the transition
- Overestimating your staffing needs
- Outsourcing your problems to another company
The first mistake is failing to compare BPO companies to find the best match. Take the time to compare multiple BPO providers. Find out how they hire employees, where they are located, and how long they have operated. An experienced BPO company that serves a large variety of clients is more likely to meet your requirements compared to a startup BPO company with no experience.
You also need to have a clear outline of your project requirements. You cannot fault a BPO provider for failing to meet your needs if you do not explain what you need. Remember to create a detailed outline that thoroughly explains the scope of your project.
After you start outsourcing, maintain communications with your BPO provider. Many BPO companies send monthly or quarterly reports, allowing you to review the performance of your outsourced team. If you fail to read the reports, you cannot accurately evaluate the success of the project.
Some businesses try to manage every detail of the outsourced call center. Part of the reason for outsourcing is to free up resources, so you can devote more time to other areas of your business. If you spend too much time micromanaging, you defeat one of the biggest advantages of outsourcing.
Businesses also need to prepare for the transition. Make sure that your staff understands how the outsourcing project will impact their daily responsibilities.
Underestimating your staffing needs is not a major problem. Reliable BPO companies can easily scale their services to accommodate the need for additional staff or larger call volumes. However, overestimating your staffing needs is harder to deal with.
Avoid outsourcing your problems to another company. A BPO company should deliver reliable customer support and other outsourcing solutions. However, you cannot expect them to fix problems with your business processes. Determine the cause of the problem and resolve it before outsourcing.
What Type of Services Can You Outsource?
While many businesses hire BPO companies to outsource call center services, you can find a wide variety of BPO services. Here are the main types of services that you can outsource:
- Appointment-setting services
- Technical Support Call Center
- Data entry services
- Live chat support
- Customer Support
- Help Desk
- Email Support
- Ecommerce support
- Content Moderation
- Social media support
- Photo Editing
- Back Office Support
BPO companies continue to grow to accommodate the diverse needs of businesses around the world. As the Filipino BPO industry flourishes, companies may expand their services to cover more of your back-office operations.
No matter if you need inbound call center services, technical support, data entry, or appointment setting services, Digital Minds BPO can address your needs. With hundreds of clients around the globe, Digital Minds BPO is a leading source for Philippines outsourcing. Receive superior service from a talented team of professionals while ensuring that your customers continue to get the support they need.
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