Updated Call Center Cost For 2021

2021 Philippines Call Center Costs (Risks & Benefits)

Top Contact Center Outsourcing Companies & The Challenges Faced From The Risks

There’s no doubt that COVID-19 has disrupted call center services outsourcing operations on multiple levels. With the future still uncertain, traditional contact center labor models won’t be enough to recoup what’s been lost.

Over the past few months, the call center for outsourcing industry has had to brace for large volumes of callers. Contact center leaders needed to rewrite established rules to launch customer experience. All this with the current situation in mind and how to keep the industry going for existing and future partners.

Survey respondents stated that the following were the areas they felt the most challenged when the pandemic started until recently:

Challenges from Covid-19 disruption
Shift in overall business strategy47.60%
IT/technology problems inhibiting ability to Work from Home42.90%
Data privacy/security concerns with agents in Work from Home model41.00%
Difficulty supporting business growth because of staffing challenges36.20%
Difficulty supporting business growth due to technology limits25.70%

Because of the challenges, some SMEs think that it would be a risk with contact center outsourcing to the Philippines.

 

Challenges Of Contact Center Outsourcing Services And How Magellan Solutions Solve Them

Customer expectations have increased since February of last year. This is one of the major factors why respondents to the survey say that a shift in strategy has been the main disruption due to COVID.

Furthermore, SMEs believe that when they outsource to the Philippines, they end up paying way more than they need to. These payments included inflated management fees, big salary markups, middlemen, etc. And of course, the looming risks.

1. Misunderstood BPO Contracts in the Philippines

Contractual misunderstandings can lead to discontent. This can mean that certain expectations are assumed but might not be met, leading to frustrations. Issues around billing methods, proprietary security, and approved overtime are just some examples.

At Magellan Solutions, we take the time to ensure that you understand every part of your contract. Equally, we make sure that your subcontractors have a thorough understanding as well. Should you need assistance or further clarification on certain matters, rest assured that you will be extended the service whenever necessary.

2. Quality Control

Over the last decade, we have seen that the quality of different BPO service providers can vary greatly. When you work with an unreliable BPO company in the Philippines, your provider may be driven to work more for their own benefit than yours. As a result, you might end up with poor manpower services compromising your business operations.

We believe that your success is our success and that’s what our business model is based on. We have a laser-sharp focus on quality recruitment and supporting the working relationship for sustainability.

3. Confidentiality Breach

If your call centre and help desk outsourcing provider in the Philippines does not extend HR services, keeping track of your people and their activities will be challenging. Without proper off-site management, your proprietary information may even fall into the wrong hands or be made public when otherwise it shouldn’t be.

One of our top priorities is to ensure confidentiality. We have a HIPAA compliance and ISO 27001 certification. As a legal entity in both the Philippines and the USA, we make sure these highly enforceable contracts are always in place.

4. Slow Internet Speed

In an article released by CNN Philippines, the speed and ease of use of long-term evolution or LTE connection in our country are below par. The data showed that our country is in the 74th spot out of 77 nations listed for 4G speed.

Among the outsourcing risks, this can affect firms and clients in a poor way because we use the internet as a staple. Thus, we can say it’s one of the potential risks in outsourcing business tasks. 

But this issue is easily solved by how Magellan Solutions is backed p by a steady and fast connection for the smooth flow of our processes.

5. Rising Health Risks

Since most clients who farm out their services are from the other side of the globe, most BPO workers have to work in the graveyard shift. 

But with this thought in mind, Magellan Solutions have a flexible shifting schedule. We hire teams dedicated to the regular working hours. And we also hire a team for the time that you require an employee at your beck and call.

6. Global Domination of Artificial Intelligence or AI

As the use of AI in creating systems for repetitive tasks continues, know first if the task you’re about to outsource has an existing system or not. This domination may leave millions working in the outsourcing market jobless. 

Note that systems and machines can’t do tasks that ask for critical thinking skills and complex decision-making. These jobs include research, giving advice, data analysis, and mobile and cloud services. With this, we have a balanced distribution of work to humans and technology. Even those tasks done by robots are checked further by employees.

7. Increased Tax Rate

Due to the new Tax Reform Acceleration and Inclusion or TRAIN law affecting a few foreign firms in the country, the BPO sector may resort to added fees and charges. 

But Magellan Solutions is very transparent with our contract. We list everything that is included for the initial contract signing. It is then adjusted and adapted to what you want further. It is still all up to you how the changes in the contract will be. Our rates and services are flexible enough to keep up with your personalized business needs.

 

How much does it cost to outsource a call center?

A lot of overseas businesses have thought of opening their own business here. But that is only possible through a work permit and a Filipino partner. This now brings up the question “how to outsource call center?

For a starting cost of a call center outsourcing services, you pay around $11,700 to $13,200 per year. Inclusions already cover everything from the start of the contract.

  • Facility rent, leases, utilities, maintenance
  • Upgrades and build-outs for COVID-19 compliance
  • Supplies and consumables
  • Travel costs
  • Accounting
  • Legal
  • Insurance
  • Business continuity
  • Corporate marketing
  • License and bond expenses
  • Taxes
  • Compliance and other certifications
  • Call center technology and maintenance

Meanwhile, listed below is the expected salary. This is already covered by the company that you will be outsourcing to:

Call Center Outsourcing VendorsPhilippinesIndiaSingapore
Agent (1-3 years exp.)$3,337$3,389$7,458
Agent (3-5 years exp.)$5,175$5,490$22,374
Team leader$7,152$4,879$32,194
Operations manager$14,665$10,474$37,290

Reminders to Effectively Outsource in 2022

While saving on costs is one of the reasons why businesses worldwide choose to outsource in the Philippines, it is good to note that the Philippine BPO industry is competitive and diverse when it comes to its service offerings. That advantages benefit businesses in many ways.

With that in mind, you can follow these best practices to ensure you can outsource effectively in the Philippines.

1. Check your business-BPO provider compatibility

Compatibility plays a huge factor when it comes to outsourcing. As it can dictate whether you will get your desired benefits and results when you partner with a BPO provider. As such you have to make sure that your business goals are in line with your chosen 3rd party provider.

This means they truly understand your business objectives and strive to provide only the best services to make sure you can achieve your goals.

2. Consider industry experience

In the Philippines alone, you can find thousands of BPO companies catering to foreign businesses. Such diversity however does not guarantee equal service delivery and performance that you may need. That is why it is important to weigh in on the skills and industry experience of service providers.

It is best to shortlist companies you think are suitable for your business operations. In particular, years of experience in your industry is vital as it shows an advantage on how to deal with your type of customers. It is advisable to partner with a BPO provider that is updated with the latest industry trends and uses CRM tools, tech support tools, and other call center software with proven infrastructure to support the operations.

3. Ensure quality customer service is possible

Other than cost and seamless collaboration between your business and your BPO partner, quality customer service must be a priority when choosing a 3rd party provider. As customer satisfaction can either make or break your business, it is important to partner with a BPO company that can deliver quality customer service, all the time.

With that in mind, you should ensure that your partner is adept in delivering quality service quality rooted in excellent processes and tools. You can check their previous experiences and how they qualify as customer-focused which would be an asset for your business in the long run.

4. Find a common denominator when it comes to corporate culture

Corporate culture compatibility is vital if you are looking to outsource for a long period of time. Work culture is important if you are looking for a long-term relationship with a BPO company in the Philippines. Having a similar corporate culture minimizes misunderstanding, misinterpretations, and conflicts all throughout your outsourcing journey.

 5. Critical functions should stay in-house

In general, outsourcing solutions that is compatible with your needs saves you time and resources but is not a panacea-for-all type of thing. Having said that, it is important to keep the processes vital to your business in-house. This minimizes issues on important matters and lets your in-house team focus on and provide solutions when necessary.

Outsource inbound call center services and more to the Philippines

As stated above, even with the existing risks, we make amends to still be able to work diligently. It is further proven by how the outsourcing sector continues to be one of the key contributors to the economic growth of the Philippines. 

As most successful people say, success comes to those who take risks. 

As technology and associated issues increase in complexity, the right offshore strategy is all about driving true transformation and helping organizations meet challenges. Firms that have built business models over the last two decades still need a global workforce to transform IT services from a back-office service to an innovation and growth platform.

For almost 20 years in the industry, we believe that strategic offshoring, when done right, creates relationships that enable enterprises to anticipate, prepare, and adapt to an uncertain and constantly evolving market.

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