To say the world’s economy is in a state of crisis is an understatement. Inflation in many countries has reached levels not seen in decades. In response, central banks are raising interest rates. As the British pound continues to weaken, the UK spirals deeper into inflation. In the United States, inflation has pushed consumer prices up 9.1 percent over the year ending June 2022, the largest increase in 40 years.
“While uncertain economics undoubtedly affect consumers struggling to afford spiraling food and energy prices, they also impact global businesses. Hit especially hard are startups and small-to-medium enterprises (SMEs), many of whom are still recovering from the global pandemic. Still, no matter the size of the business, companies worldwide need to cut costs wherever possible to survive the current economic climate,” says Ralf Ellspermann, CEO of PITON-Global, one of the leading mid-sized call centers in the Philippines.
For global companies, outsourcing services like call centers to the Philippines gives them a chance to do just that.
A track record of outsourcing success
Call center outsourcing to the Philippines is not a recent trend. Since its inception in 1992, the rise of the Philippine outsourcing industry is one of the business world’s great success stories. The country’s call center sector is now ranked #1 in the world, and its business processing outsourcing (BPO) industry is second only to India in popularity.
Along the way, BPO and call center outsourcing has become a cash cow for the Philippine economy. Outsourcing generates more than US$28 billion in annual revenues, accounting for 10% of the country’s GDP. The Southeast Asian nation is home to more than 800 call centers that employ more than a million people. This growth shows no sign of slowing, particularly as global companies continue to enjoy the cost-cutting, revenue-boosting advantages of call center outsourcing to the Philippines.
What are the advantages?
“Contact center outsourcing to the Philippines offers startups and SMEs many advantages over operating an in-house call center or outsourcing to onshore providers. These benefits include tapping into a pipeline of a young, skilled, and highly educated workforce, access to cutting-edge technology and world-class infrastructure, and strong government support,” says Ellspermann.
Companies can also enjoy improved operating efficiency and employee productivity, a greatly enhanced customer experience, and significant labor and operating cost savings. In fact, organizations can save up to 50% on operating expenses by outsourcing to call centers in the Philippines.
The importance of cutting costs
“Trimming labor and operational costs can be an economic lifeline for struggling companies, as it frees up capital that can be invested elsewhere in the business. The drastic cost reductions that come from outsourcing BPO to the Philippines give SMEs the flexibility to strategize where they choose to invest their money and resources,” explains Ellspermann.
Even a slight reduction in costs can enable small businesses to invest in essential revenue-generating strategies like attracting new clients, expanding research and development, improving marketing and advertising, and providing top-notch client and customer services. Outsourcing call centers to the Philippines also facilitates growth, agility, and faster time to market.
Contact center outsourcing to the Philippines makes good economic sense
Since the costs of running call centers in the Philippines can be 40-50% lower than in other countries, outsourcing to the Philippines makes good economic sense for cash-strapped startups and SMEs. The cost-cutting benefits highlighted here can help small businesses survive a brutal economy and provide a cost-effective way to scale, grow, and set themselves up for long-term success.