Fb Pixel How Much Is Saved In Outsourcing To Philippine Call Centers?

How Much Is Saved In Outsourcing To Philippine Call Centers?

profit in call center business

philippine call centersThe Philippines is one of the top countries when it comes to outsourcing and offshoring. This is because call centers in the Philippines are much cheaper compared to other countries, especially those in the United States and European countries. Though it is cheaper, the quality of work is just as good — if not better — compared to other countries like India.

We all know that BPO and call center outsourcing services are on the rise. Just last year, the revenue went up to US$88.9 billion. That is more than US$10-billion increase from last year’s US$76.9 billion, according to Statista.

Call centers still preferred than other channels of communication

Despite the availability of resources for self-service such as internet access and product brochures, customers still prefer to phone call centers to get the information they need. What’s more is that, according to eConsutancy, 61 percent of them would rather have a phone conversation with an agent even if there are other channels for support, like live chat with 57 percent, and delayed response emails with 60 percent.

Moreover, 69 percent of customers would also consider making online phone calls if they didn’t have the option to have old-fashioned phone conversations with brand representatives. This means that while businesses strive to offer multi-channel support, the bulk of their incoming queries would still come in the form of calls. 72 percent of customer service is still provided using call centers as intermediaries, which cements their importance in business operations.

Outsourcing in the U.S. versus the Philippines

While it is no secret that outsourcing in western countries is expensive, it is better to see it for yourself and really know just how much you could save from outsourcing to the call center in Philippines.

philippine call centers

Call center agents’ salary rates preclude bonuses — which can reach up to $3,000 — and commissions, which can be worth anywhere from $400 to $25,545. These rates are also exclusive of health benefits and dental insurance.

Outsourcing to Philippine call centers

philippine call centersSimilarly, these rates are exclusive of bonuses, commissions, and health benefits. Service providers also take charge of offering Filipino employees health management organization (HMO) cards that can cover not just the agents’ welfare, but that of their dependents as well.

The large disparity between salary rates in the US and in the Philippines, as well as the higher exchange rate of the US Dollar over the Philippine Peso, translates to drastic cost savings. It also gives American companies value for their money since Filipino call center agents are screened and hired on the basis of their experience level. Moreover, service providers bear the brunt of health benefits and overhead costs.

Cost reduction continues to be the primary reason why businesses outsource to the Philippines. The lower cost of operating in an offshore location versus American rates and currency helps them maximize their resources.

In other words, clients have a lot to gain from outsourcing to call centers in the Philippines. Not only does it help them scale down on costs, it also gives them access to an experienced workforce, expansive business infrastructure, best practices, and highly efficient processes.

Philippine call centers versus other Asian countries’ call centers

Other than the Philippines, outsourced call center services is also cheap in other countries. But compared to other Southeast Asian countries like India or China, how much will a company save if they choose the Philippines?

It is a known fact for many American companies which has gone offshore in the Philippines that it is better to outsource in the country compared to other Asian counterparts. This is because Filipino call center agents are more capable of speaking English with almost invisible accents than India and other countries. Though India is cheaper, Indians tend to have a heavy accent and their idioms are far from American ones.

According to a New York Times article, there are American companies that acknowledged early on that “they focused primarily on saving money. But as they gained experience in different countries, they realized that was not the best strategy.” Also, many analysts have said that Filipino call center agents have solved complaints better for American consumers since they can understand them better.

Here’s the bottom line: with the skilled workforce and lower cost the Philippines offer, it would be better if you outsource here.

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Magellan Solutions
Magellan Solutions
Magellan Solutions is a Filipino-owned outsourcing company. It provides inbound and outbound contact center services as well as other business process outsourcing (BPO) services that cover finance and accounting, healthcare, sales and marketing, engineering, architecture, design, data management, human resources, legal, and IT. Combining years of experience; unrivaled expertise; and capabilities across industries and business functions, Magellan Solutions bring optimum approaches to strategies of business operations by delivering customizable BPO and customer management solutions to any type and any size of business.