Are you planning on outsourcing to the Philippines? Metro Manila is home to numerous call centers, providing mutual benefit for the country and these businesses. Learn why it’s the contact center capital of the world and how it could help your company.
We’ll start by discussing how the Philippines gained such a reputation. Then, we will go through the reasons why foreign business owners love outsourcing there. More importantly, we’ll explain how to start your contact center in the world’s call center capital.
Business process outsourcing (BPO) lets companies expand to new horizons around the globe. Yet, many companies choose this Southeast Asian nation as a top outsourcing destination. Establishing a center in the Philippines lets you access the best agents in the world.
Types of Call Centers
Before we get into outsourcing in the Philippines, let’s discuss the kinds of call centers. You may divide them according to the types of software they use.
Knowing them can help you plan your Philippine call center. Choose the one that suits your business needs the most. You may choose from the following:
Hardware – The company uses physical servers within the office. It will need a space wide enough for all of those. Also, it should use up-to-date technology.
Cloud-based – A cloud provider hosts the online server. It’s in charge of all inbound and outbound communications. Cloud contact centers work like other types. However, they’re more accessible.
Hosted – Outside companies provide these. They let other businesses minimize spending for better services.
Virtual – Its agents provide virtual receptionist services. The company allows employees to work from their homes. Even better, it helps reduce business costs.
Due to the pandemic, numerous Philippine call centers now offer remote work. Still, they provide world-renowned BPO services, outbound or inbound!
Outbound Call Centers
You may also classify Philippine call centers by the services they provide. They could be divided into outbound and inbound call centers.
Outbound call centers call customers. They sell products, raise funds, or perform surveys. Many companies work with them to reduce costs. Also, these contact centers help by:
Sending messages and providing services for emergencies
Researching markets and customer feedback
Providing credit card services like fraud prevention
Informing customers about account upgrades or renewals
Inbound Call Centers
Other agencies help customers with their issues. Aside from customer support, they could take on sales orders too. Moreover, they could serve as internal help desks for companies.
Like outbound contact centers, the inbound ones help other companies reduce spending. Also, they provide more services such as:
Listen to requests and complaints from clients
Provide tech support
Manage order entry and processing
Set appointments and reservations
The Philippines: Call Center Hub of the World
Call centers let companies reach a global customer base. Still, they prefer the Philippines as their base of operations.
Here are the top reasons why:
High literacy rate – 98.18% of Filipinos aged 15 years or older can read and write. This means they could take on BPO jobs.
Young workforce – The average Filipino worker is around 23 years old. They’re often used to tech and social media. That’s why they have an easier time getting the hang of BPO work.
Neutral language – Filipinos are typically fluent in the English language. That’s why the Philippine BPO industry is full of employees with accents similar to the United States.
High-quality work – Numerous researchers say that the Filipino BPO industry delivers top-notch work worldwide.
Great costing – Labor costs in the country are nearly half of that in the UK or US. Business owners could save up to 60% with Philippine call centers.
Ready access to great talent – The Philippine education system is similar to the US system. As a result, companies have a wide pool of skilled and motivated employees. They can provide various BPO services like graphic design and software development.
Philippine government support – The Technical Education and Skills Development Authority (TESDA) gives customer support training. Meanwhile, the Department of Information and Communications Technology (DICT) aids the BPO sector further.
In the Philippines, how can you start a call center business?
Want a Philippine call center for your company? You’ll need to plan first carefully. Then.
Here are the steps to outsourcing to the Philippines:
Set your goals – Start by asking why you need a Philippine call center. This will help you determine what kind of customer support center you’ll need.
Choose your type of call center – It could either be fixed or remote. The latter’s much better due to several reasons. Still, you should see which one works for your business.
Plan your budget – See how much a Philippine call center would cost. Fortunately, these are more affordable compared to centers from other countries.
Deal with paperwork – Check the laws before outsourcing to the Philippines. Speak with the local government agents to get the requirements.
Hire the right people – Balance the number of call center workers with your outsourcing goals. Having too many means spending too much. Getting too few and you might miss your target revenue.
Get the right tools – They should be up-to-date since tech is always changing. Still, be careful of the costs. Make sure you only get the devices your company needs.
How much does it cost to outsource to the Philippines?
If you’re set on outsourcing in the Philippines, you should know the costs. The cost for an average Filipino call center agent is around $8–14.
What’s more, the country’s Department of Labor and Employment (DOLE) provides further detail. They listed the labor costs for Philippine call center agents:
Annual total labor cost – $6409.12
Pay for regular work time – $4961.21
Overtime, night shift, premium pay – $134.85
COLA & other allowances – $149.33
Bonuses & PIS – $110.39
Commissions – $47.02
Social Security – $455.70
Training costs – $23.52
Welfare services – $10.92
Housing – $8.56
Payments in kind – $5.90
Other labor costs – $17.91
Bonuses and other benefits – $478.63
Year-end, seasonal, and one-time bonuses – $47.02
Additional payments such as vacation pay – $14.17
Profit-sharing bonuses – $3.18
How to find a Philippine call center with per-call pricing
Most businesses want to maximize profit and minimize costs. You need to make sure your company makes money. Also, a business shouldn’t spend too much.
However, it’s difficult due to the sheer number of expenses. You’ll have to spend on physical space, equipment, and employees. Also, they have to be worth the money they make.
That’s why they often want pay-per-performance pricing for outsourced call centers. It provides the best benefits of outsourcing: high-quality and low costs.
Otherwise known as pay-per-call pricing, you pay for every call. You get results first, and then you pay for it. That means none of your budgets is wasted on customer services.
What’s more, it makes sure that the agents provide the utmost quality. After all, the center doesn’t earn if it doesn’t deliver.
It’s hard to find call center outsourcing with this model, though. After all, that makes it difficult for them to get a stable income. Thankfully, LeadAdvisors, all your Philippine call center needs!
Reduced costs – LeadAdvisors provide outsourcing in the Philippines with a pay-per-call model. They lower the idle time to give an affordable rate. Note that each call has to be committed.
Scalability & Flexibility – Call volumes tend to rise and fall. LeadAdvisors distributes work effectively throughout the staff. As a result, their call centers can delegate work efficiently when the call volume increases.
Specialized industry knowledge – Philippine call centers have expertise in various industries. They have highly-trained staff who rise above the competition.
Dedicated call managers – LeadAdvisors call center representatives can quickly adapt to different situations. As a result, outsourcing to the Philippines increases customer satisfaction.
Skilled support and management – LeadAdvisors hires the best managers to provide their experience in contact center operations. What’s more, outsourced call centers only hire specialists for certain departments like training or tech support.
Data collection and analysis – Outsourced call centers gather data from their marketing campaigns. Then, they use technologies that help turn raw data into useful info. Philippine call centers use these to improve their services.
Quality control and monitoring – LeadAdvisors ensures its call centers professionally handle calls. They follow strict quality standards to provide the best service.
How much does a Call Center Representative make in the United States and the United Kingdom?
Per Indeed, 38k salaries reported $14.10 an hour with a yearly cost of $29,328. Average Cost Base Salary in the United States from 1.9k salaries recorded, $18.10/hour to $22.20 hour, as shown below.
Hiring costs approximately $20,645, office space costs approximately $48,000, and software and hardware cost approximately $3,600. These prices may differ depending on where you live.
As far as the United Kingdom, the average salary for a call center representative is £19,385 per year. Which is approximately $27,352.24 in the United States.