Contact center outsourcing in the Philippines is one of the world’s fastest growing and most successful industries. The first choice of major global corporations like Google, Microsoft, Verizon, and American Express, the country’s business process outsourcing (BPO) industry has become a US$30 billion sector that employs more than a 1.4 million Filipinos.
The benefits of outsourcing call centers to the Philippines
“Low labor and operating costs are often the primary reason why companies are outsourcing their call center operations to the Philippines. They know that doing so can help them save on labor costs and overhead expenses and relieve them of the considerable financial output of managing an in-house call center. They are also eager to tap into a Philippine workforce that’s young, skilled, English-proficient, and tech-savvy,” says Ralf Ellspermann, CEO of PITON-Global, one of the leading mid-sized contact centers in the Philippines.
How are call center outsourcing costs determined?
In preliminary discussions with an outsourcing provider, companies must first decide exactly what they need from an offshore call center. Important factors that can determine final pricing include number of seats, contract length, agent expertise, operating days and hours, and KPIs.
Calculating outsourcing costs is not an exact science. Each call center provider in the Philippines has its own unique fee structure, so prices vary from one provider to the next.
Call centers in the Philippines charge affordable hourly rates
Hourly rates are another consideration that can guide a company’s hand in choosing a BPO provider. On average, contact centers in the Philippines charge US$8–$16 per hour for their services. When compared to hourly rates charged by centers in the US (US$24–$32/hour), Latin America (US$14–$20/hour), Western Europe (US$25–$35/hour), Eastern Europe (US$18–$26/hour), or Australia (US$28–$40/hour), outsourcing to the Philippines is by far the most affordable option.
The dangers of going cheap
Unfortunately, many companies are lured by cheap hourly rates before fully researching a provider, especially their quality of service and the reviews of past clients. “These companies learn a harsh lesson about outsourcing to the Philippines: The lower the rate, the lower the quality, and the higher the risk of program failure.
“One truism of choosing a call center provider is that rates are a prime indicator of the type of service a company can expect. A low-cost provider that charges US$8 per hour may seem more cost-effective than paying the premium providers' US$12–16 hourly rates. But companies that jump at the low-rate bait often get what they pay for,” cautions Ellspermann.
That’s because low-cost providers don’t have the financial means needed to compete with the country’s top agents. They can’t afford to hire the best English-proficient talent or invest in state-of-the-art facilities powered by the most advanced technology. All they can offer are low rates—they compete solely on price. The bottom line: Companies that look to save money by going cheap often pay the price in compromised overall service, poor customer experiences, and a shoddy ROI.
Research a call center before choosing
“Vetting an outsourcing provider is an essential step in choosing a contact center in the Philippines. While low rates may seem tempting to cash-strapped startups or SMEs, companies must ask themselves where their investment is going. In today’s ultra-competitive business environment, the quality of call center services is often a more important consideration than low hourly rates,” concludes Ellspermann.