How Much Do Philippines Call Center Costs?

Call Center Cost in The Philippines

Call center services in the Philippines is the cheapest among other BPO-driven countries. 

But it is also one of the best.

In comparison to the $30,000 salary for a regular US call center agent per year, a Filipino agent receives a salary of roughly $7,395 a year. Even with the huge difference, call center work in the Philippines is one of the highest-paid job in the country.

Although cheaper, the service quality in sales and customer support is as good or exceeds ones provided by other countries. With affordable labor rates, the Philippines come out as one of the top choices for outsourcing and offshoring for foreign companies.

Call Centers vs.  Other Channels Of Communication

Customers prefer call centers over indirect platforms such as the usual product manuals, brochures and even chatbots.

According to eConsultancy, the following are the customer preferences:

61% – Phone conversation

Directly talking over the phone with an agent is usually a better choice than other communication processes. 

Most problems could be resolved within a call. This is requirement for phone agents, the ability to solve a customer’s problem builds rapport. This helps resolve issues in the company service of a product in a calm and collective manner. Customers may also get to talk to team leads who may have better solutions and information to help them with the service or product.

57% – Live chat

Live chat is similar to phone conversations. The only difference is that you get responses through chat/ text replies. 

With live chat, sending files such as images, also makes it a better experience for customers. Instead of taking time explaining in a call, sending a visual file solves the issue faster as the agent could easily point out what to help with. With chats, repetition could also be avoided as both agent and customer could simply read back.

60% – Emails

Regarding email choices, this usually serves as a better option for agents, especially during peak seasons. Resource planners could schedule agents’ responses in an organized manner. 

Emails are usually longer than chats because most customers would want to have a fuller explanation on the raise issue/ situation. This format allows agents to review the inquiry as many times as they need to compose a fitting solution. 

Follow up questions are easy to see as customers need to just reply to the email thread for further problems.

Customer service makes up  72% of most BPO operations. Even with other omnichannel support systems, most inquiries still come in the form of calls.

How Much Does It Cost To Outsource Customer Service?

It is no secret that outsourcing in western countries is expensive.

American call center agents expect a salary range of $9.00 – $16.82 per hour.

This precludes bonuses, — which can reach up to $3,000 — commissions from $400 to $25,545, plus benefits & insurances.

Outsourcing rewards, not just cost-cutting, but also cost-saving opportunities too. The only cost for hiring outsourced customer service is the compensation package. Precluded bonuses are shouldered by the outsourcing firm.

With the usual $30,000 budget for local agents, you can already hire 2-3 staff when you outsource. 

Call Center Costs In The Philippines 

How much does a Philippines call center cost?

Filipino call center agents get paid between $0.99 – $3.36 per hour.  

Rates depend on:

• Number of agents
• Expertise
• Current labor market rate
• Contract length
• Call volume
• Average handling time
• Add-ons

These rates are exclusive of bonuses, commissions, and health benefits. 

Companies, like Magellan Solutions, offer their employees health management organization (HMO) privileges. Through this, clients can rest assured of a safe working environment for their outsourced agents. This translates to business continuity and scalable performance. All these for much lower rates as compared to those of western call center agents.

Call Center Costs In The Philippines Amidst Covid-19 

COVID-19 forced an immediate change in an industry that was clearly stuck in its ways.

The work-from-home environment is the new normal for call center industries around the world. 

Infrastructures and living conditions may not be favorable to some of our employees. Outsourcing agencies make use of all internal resources to make the new set up reasonable.

Most call center industries in the Philippines do not have additional charges for the new set up. 

Currently, there is a 50-50 ratio of on-site and work from home set-up. Those who work from home are employees that have accommodations that are on par with their office station. 

Meanwhile, for those who might not have the initial necessities for a work-from-home setup, the company has taken full responsibility to cater to these essentials. 

Companies allow their agents to lease work apparatus. 

In line with this, clients can rest assured that they are not going to be charged for any additional fees.

On top of the pandemic, one looming threat to the industry would likely come from chatbots. 

These AI-powered chat platforms are expected to replace basic call center services that comprise around 50-60% of customer contact operations globally. 

While there is a threat to call center automation, it is still up for debate for most call center companies. Because efficiency is only one factor towards customer satisfaction. And it’s not even the most important consideration.

Why Outsource To The Philippines

Cost-reduction is the primary reason why businesses continue outsourcing in the Philippines.

Rates in the Philippines compared to the US clearly shows which offers a more cost-saving service.  From $30,000, there is a swift decrease with the estimated $7,000 annual salary instead. American companies value money and time. Philippine call centers make use of what the client offers by screening agents based on experience level.

The low operating cost in offshoring to countries like the Philippines do not equal to low quality workers. One of the primary considerations for hiring a talent is experience and agreement to the salary budget of the client.

There are other Southeast Asian countries that offer cost-saving services. But most American companies still prefer the Philippines because of the higher mastery of the English language and exposure to Western culture. Though India offers cheaper services than the Philippines, the downside is having heavy accents and idioms that confuse American customers.  This is true for both voice and non-voice services.

Here’s the bottom line: With the skilled workforce and lower call center pricing in the Philippines, it would be better if you outsource here. It’s that simple.

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