Why outsourcing to the Philippines may not be as cheap as expected

Why outsourcing to the Philippines may not be as cheap as expected

OABPO Blog Team Published on September 30, 2013
outsourcing-statistic-report-calculator-and-headset

As the Philippines is one of the leading outsourcing destinations in the world, many are surprised to learn that outsourcing to the Philippines is not as cheap as initially expected.

While home-based offshore virtual assistants accept payments as little as $2.50 per hour, those employed by call center companies often have higher compensation. In fact, the average Filipino customer service representative at a respectable firm will have an hourly rate that is just a few dollars lower than what you might pay in the US.

Reasons for outsourcing costs

Outsourcing abides with the same rule that governs the business world: You get what you pay for. True, cheap outsourcing partners in the country do exist. The drawback, however, is that these tend to be located in undeveloped provinces where talent supply and infrastructure remains a challenge.

Additionally, provincial centers survive on low-end computer and communication equipment. Moreover, whereas a college degree is the norm in urban call centers such as those in Metro Manila, candidates in the provinces may get through recruitment processes without these types of qualifications. The provincial center may also lack internal QA or IT teams essential for ensuring quality and efficiency in the workplace.
Aside from these, the work-at-home model is typical in provincial call centers. This means that agents can work under five to six different agencies all from the comfort of their own couch.

On the other hand, there is another option for foreign companies outsourcing to the Philippines: the offshore providers in business district locations that offer higher-quality services, although at prices higher than their provincial counterparts. These providers typically utilize the latest technologies and have stringent screening processes to select the cream of the crop among hundreds of jobseekers. This means that a company can acquire an outsourced team of professionals that not only have qualifications, but also expertise in their respective fields, whether in customer service, technical support, or IT-related services.

Even though these providers cost more compared to others in the country, they are still generally a better option because they offer a guarantee of better service. Their offerings still fall within a reasonable price range, since outsourcing comes with low operational expenses and added values such as full logistical support, redundancy, and state-of-the-art facilities, among many others.

Leave a Reply

JOIN US ON FACEBOOK
Open Access BPO
Open Access BPO2 days ago
The holiday season has always been a challenging time for companies managing #CustomerService. Make your #CallCenter's #CustomerSupport strategies foolproof by considering these challenges: https://zcu.io/Jh2M

#WeSpeakYourLanguage #Outsourcing
Open Access BPO
Open Access BPO2 days ago
Open Access BPO Taipei is the strategic outsourcing hub for businesses wanting to reach large Asian markets.

Our office provides multilingual #CustomerSupport, #ContentModeration and back office services designed to meet the unique needs of businesses catering to East Asian markets. Our experience in the sector connects your business operations to Asian markets, with results that add value to the #CustomerExperience.

Read more: https://zcu.io/jFDr

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO6 days ago
Companies delegate some of their processes to #CallCenter service providers to save time and resources. However, new businesses. such as #startups, should be careful of which tasks to outsource to ensure success: https://zcu.io/xLvY

#WeSpeakYourLanguage #Outsourcing #BPO
Open Access BPO
Open Access BPO1 week ago
We hope you have a fun and safe time with your loved ones wherever you plan to spend Thanksgiving this year. Happy #Thanksgiving!

#WeSpeakYourLanguage #OAHolidays
Open Access BPO
Open Access BPO1 week ago
Every entrepreneur's dream is to grow beyond his own shores, but how do you know if you're up to the challenge? Look out for these signs before taking your first step into international #expansion: https://zcu.io/Safk

#WeSpeakYourLanguage #Startup #Offshore #Outsourcing
Open Access BPO
Open Access BPO1 week ago
High employee turnover costs money and resources. It also jeopardizes your #brand reputation. One way for #CallCenters to prevent all these from happening is to build an effective #CareerDevelopment program.

Learn more: https://zcu.io/XdNU

#WeSpeakYourLanguage