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Outsourcing Companies in the Philippines and Services They Offer

By Magellan Solutions

Updated on April 30, 2024

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The Industry of Outsourcing Companies in the Philippines for SMEs

There are more than 800 outsourcing companies in the Philippines. This consists of 15% of the total Filipino workforce. The outsourcing industry is also one of the most significant contributors to the Philippines’ GDP.

With this in mind, the Philippines’ BPO is an integral part of the economy. This applies to both the Philippines and the global economy. While it helps the local industry because of the available jobs, it also allows foreign firms to operate at an affordable price.

Some Filipino contact centers provide small and medium enterprises (SMEs) services. They offer several programs that will help them in business expansion. Here are some of the accounts available:

Inbound Call Center Service

This is the most common service for the Philippines BPO. Companies usually avail of this program for their customer service. Good customer service is essential, especially for client retention.

Outbound Call Center Service

Outbound call centers involved in proactive client interaction. These include telemarketing, surveys, lead generation, and other services related to calling customers. With this in mind, outbound service is essential because it helps to introduce your product to potential buyers.

Tech Support/IT Helpdesk

Although India is the destination for tech-related services, the Philippines is its rival regarding quality. They can assist you with your website. Additionally, they are experts in troubleshooting computer problems.

Chat/Email Support

They can assist consumers who want to deal with inquiries through outsourced chat support and email support. Furthermore, this is a developing industry, as most buyers do not have time to talk over the phone. Besides that, they can do either sales or customer service.


Call Centers Philippines: Who Are The People Behind BPO Philippines?

The Philippines BPO industry comprises agents with vast expertise in different fields. According to CHED, there are more than 700,000 Filipino graduates yearly. This came from other courses and programs.

Aside from this, Filipinos are fluent in English. They are some of the best English speakers in Asia. This is perfect for companies whose target consumers are in Western countries.

The call center industry in the Philippines also has strong support from the government. They are conducting several programs to enhance the skills of Filipino contact center agents.

There are still a lot of attributes of Filipinos that are perfect for your outsourced company. This is especially applicable to SMEs. You have to experience it yourself to benefit from it.


Why Should SMEs Outsource to the Philippines?

As stated, Filipinos are a skilled workforce perfect for your developing company. They can assist consumers with everything they need.

Besides the agents’ skills, the companies themselves are ideal for SMEs. They offered a wide range of services at an affordable price. There is also no problem if you are new to business outsourcing as they can help you get familiar.

They also have business developers to assist you in targeting specific goals. With this in mind, these goals will translate to business strategy for your operation. Besides that, they can determine how many call center agents you need.


Case Study: Transforming Customer Support with Philippine Outsourcing

Discover real-world success stories of businesses transforming their customer support with Philippine outsourcing. From Unilever to SeatGeek, see how companies leverage Filipino talent to streamline operations, reduce costs, and achieve remarkable growth.

Unilever: Unilever saved Є700 million annually from streamlining operational activities in the Philippines where they were able to access the skills and resources they needed and reduce both operating and labor costs.

AT&T: Outsourced call center operations in the Philippines captured 15% Arizona market share, a 4% increase in less than 7 months in a highly consolidated regional market, shepherded by Unity Communications hiring to manage AT&T’s B2B client call center operations (strategic outsourcing as a direct cause for market share expansion.) 

Wireless Watchdogs: Outsourced to the Philippines after growing frustrated with attrition, overtime, HR, and support staff issues ᅳ by creating a custom Service Level Agreement (SLA) with easily measurable KPIs they exceeded all growth targets by a huge margin and experienced a double-digit increase in work quality. 

Philips: Philips Speech Processing sourced a sales lead development service through outsourced telemarketing to make the case for a new legal dictation market for Philips ᅳ they quickly realized a 5%+ conversion rate and, equally important, gained invaluable insight into the behavior of buyers. 

Healthcare Firm: Generated an average of five leads per month for its inside sales outsourcing to the Philippines, with an additional 75+ leads already uncovered through that partnership and $27 million in new business opportunities in one year ᅳ the company effectively tripled its in-house lead generation target. 

Entrepreneur Mark McRae: Over the last twenty years McRae has founded and sold more than 30 successful businesses and generated more than $280 million in sales ᅳ crediting the low-cost access to expertise that outsourcing to the Philippines has provided to the internet. 

Rocket Resume: Outsourced a Philippine call center to handle their growing customer inquiries, freeing up their time for sales and product development: This had an immediate impact ᅳ they saw a 30-point improvement in their principal metric used to gauge the satisfaction of their customers (CSat) ᅳ after just a few months of operations with a small Philippine group that impact was multiplied by rapid growth in their overall business. 

SeatGeek: Founder Jack Groetzinger employed outsourcing throughout his career, from initial legwork on collecting ticket price data to building software: Those tasks, among many others ranging all over the business, were performed by contractors in places as far-flung as the islands of the Philippines. That the site launched at all in 2009 was due in no small part to that little hack, and since its opening, SeatGeek has grown in leaps and bounds, earning mentions as Major League Baseball’s “Most Innovative Technology” and a “2020 GameChanger” award from Sports Business Journal.


Cost Considerations of Outsourcing

⁤Cost Efficiency and Flexibility: Outsourcing can offer practical and cost-effective solutions compared to maintaining an in-house team, leveraging the cost difference in labor rates, infrastructure, and operational expenses. ⁤⁤

It enables companies to focus on their core competencies while outsourcing technical aspects to specialized professionals. ⁤⁤This approach not only ensures high-quality work and timely delivery but also allows businesses to enjoy greater workforce flexibility and direct access to specialized experts, supporting business agility in a changing marketplace. ⁤


Challenges of Outsourcing and Mitigation Strategies

Communication, Cultural, and Operational Risks: Navigating different organizational and regional cultures is one of the primary outsourcing challenges, particularly with BPO. This often results in misunderstandings that can lead to conflicts, which not only are counterproductive but can also undermine the commitment required of both the client and the service provider. 

Given that poor communication is one of the leading causes of project failure, effective communication is critical. However, this is often complicated by language barriers, disparities in time zones, and the diverse cultural norms that influence understanding and collaboration.

Mitigation Strategies: To mitigate these challenges, it would help to ensure that both parties make an effort to fully understand one another and integrate their respective culture and systems of work to avoid misunderstandings and clashes early in the relationship that can seriously hamper productivity and commitment. 

Continued involvement and an open line of communication that includes face-to-face interaction via telepresence and regular status updates using project management tools can indeed enhance collaboration and solidarity amongst team members, as staying closer and communicating often brings partners closer and helps fill in any gaps of understanding or performance.

It is also important to ensure that both work and share the same work ethic and culture, in addition to providing effective management and direction, to account for the nasty human factor and significantly enhance the likelihood of success of your outsourcing initiatives globally.


Outsourcing Companies in the Philippines for SMEs

Magellan Solutions is the best company for SMEs. We have the best agents to help you in your development. Furthermore, our Implementation Managers are there to guide you in every step of outsourcing your business.

We take pride in giving world-class customer service at an affordable price. We have assistance from the inbound call center to the outbound call center.

Contact us today and get a free 60-minute consultation.

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      Outsourcing Companies in the Philippines and Services They Offer

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