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.

Join us on facebook
Open Access BPO 7 days ago
The world is getting smaller, and your customers come from all corners of it!
Partnering with a culturally diverse #CallCenter team isn't just the right thing to do, it's a smart business move.

Learn about the key benefits in our blog:
https://buff.ly/360SqHP

----------
Want a high-value #CustomerExperience for your diverse audience?

Let our multicultural teams help your brand break into international markets without worries.

Contact us today: https://buff.ly/59i7YD6

#WeSpeakYourLanguage
#CX #diversity #inclusion
Open Access BPO 7 days ago
Open Access BPO is kicking off our Pride Week, a dedicated series of events celebrating #PrideMonth. This initiative underscores our commitment to fostering a workplace culture built on #inclusion and #diversity.

Throughout the week, we've planned a series of meaningful activities designed to celebrate the #LGBTQIA+ community. We believe that fostering an environment where every individual feels valued and empowered is crucial for our collective success.

Our dedication to creating a safe and equitable space extends beyond this week, reflecting our ongoing commitment to a more inclusive future for all.

#WeSpeakYourLanguage
#PrideMonth #Pride2025 #UnitedByLove
#OneWithDiversity #PrideMonth2025
Open Access BPO 7 days ago
Open Access BPO is kicking off our Pride Week, a dedicated series of events celebrating #PrideMonth. This initiative underscores our commitment to fostering a workplace culture built on #inclusion and #diversity.

Throughout the week, we've planned a series of meaningful activities designed to celebrate the #LGBTQIA+ community. We believe that fostering an environment where every individual feels valued and empowered is crucial for our collective success.

Our dedication to creating a safe and equitable space extends beyond this week, reflecting our ongoing commitment to a more inclusive future for all.

#WeSpeakYourLanguage
#PrideMonth #Pride2025 #UnitedByLove
#OneWithDiversity #PrideMonth2025
Open Access BPO 8 days ago
Open Access BPO conducted Plant It Forward, a two-part tree-planting initiative, held in Laguna and Davao in May and June 2025.

Volunteers from both activities planted 300 Philippine indigenous trees, which were selected to help maintain the biodiversity in the area.

โ€œThis program is more than just planting trees; itโ€™s about cultivating a culture of social responsibility within our organization and demonstrating our commitment to the communities where we operate,โ€ said Joy Sebastian, Global VP at Open Access BPO.

This is only the start. Open Access BPO vows to continue investing in such environmental projects, affirming its core value of creating positive impact.

Read more about the green initiative here: https://buff.ly/HjTlHZC

#WeSpeakYourLanguage
#OABPOPlantItForward
#OABPOcares #IdeaHubOABPO
Open Access BPO 8 days ago
๐€๐๐๐ข๐ง๐  ๐ฏ๐š๐ฅ๐ฎ๐ž ๐ญ๐จ #๐‚๐ฎ๐ฌ๐ญ๐จ๐ฆ๐ž๐ซ๐„๐ฑ๐ฉ๐ž๐ซ๐ข๐ž๐ง๐œ๐ž ๐ฆ๐ž๐š๐ง๐ฌ ๐ ๐จ๐ข๐ง๐  ๐ญ๐ก๐ž ๐ž๐ฑ๐ญ๐ซ๐š ๐ฆ๐ข๐ฅ๐ž ๐Ÿ๐จ๐ซ ๐ฒ๐จ๐ฎ๐ซ ๐œ๐ฎ๐ฌ๐ญ๐จ๐ฆ๐ž๐ซ๐ฌ.
This means transforming basic interactions into meaningful connections.

It's the secret to building strong customer loyalty and driving business success by making customers feel valued and understood.

Dive deeper into what makes a truly value-added #CX and how it can significantly boost #CustomerLoyalty and overall business success: https://buff.ly/8Wxb9gw

โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”
Ready to transform your customer experience? Don't settle for less; elevate your #CX by partnering with a #CallCenter that truly goes the extra mile 24/7.

Learn how our dedicated team can enhance your customer interactions and drive loyalty.
Take the first step towards superior CX today: https://buff.ly/L6dUG5E

#WeSpeakYourLanguage
#CustomerSupport #BPO
Open Access BPO 11 days ago
Reposted from @tdcxgroup

Weโ€™ve made yet another bold move.

Just last month, TDCX Group launched Chemin to help the worldโ€™s most ambitious companies realize their AI goals โ€” faster, safer, and smarter.

To accelerate our ambition, the Group has acquired SUPA, a cutting-edge data annotation platform known for its agile, gig-powered model and elite talent network.

SUPA will now be part of Chemin, as we make moves to deepen our ability to support everything from training foundational models to safeguarding mission-critical AI systems.

โ€œThe future of customer experience is AI-powered, and AI itself runs on increasingly complex, curated data. SUPA brings us the right capabilities and talent frameworks to fuel that future. By embedding SUPA into Chemin, weโ€™re doubling down on our ability to support enterprise and frontier AI labs with world-class data operations,โ€ says Laurent Junique, CEO and Founder, TDCX Group.

As the demand for precision, scalability, and human-in-the-loop intelligence grows, we look forward to delivering the kind of nuanced data interpretation and domain expertise todayโ€™s frontier AI requires.

Slide into our inbox โ€” we speak AI.

Tap the 'Press Release' link in our bio for more details.

#CX #Outsourcing #AI #EnabletheFuture