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

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

Open Access BPO
Open Access BPO1 day ago
Since the US is a cultural melting pot, businesses catering to the North American market would definitely benefit from skilled multilingual professionals. Read more about it here: https://bit.ly/3u9BlwH

Ready to add a second business language? Contact us: https://bit.ly/3lTr2ck

Interested in #onshoring from our #LasVegas site? Explore Open Access BPO Onshore™ Solutions: https://bit.ly/2XKlBnw

#WeSpeakYourLanguage #multilingual #outsourcing #bilingual
Open Access BPO
Open Access BPO1 day ago
English is the most commonly used business language. This should be your company's top choice if you want to tap the world's most powerful economies.

Here are the top languages businesses must offer to remain competitive in international markets: https://bit.ly/39NKqSF

For #CustomerService and #BackOffice support in over 30 languages, contact Open Access BPO today: https://bit.ly/3u9v3wQ

#WeSpeakYourLanguage #outsourcing
Open Access BPO
Open Access BPO2 days ago
Outsourcing to expert third-party providers open new opportunities and business innovations for international expansion. Open Access BPO explains the benefits for businesses who outsource: https://buff.ly/2XK3bDm

Get started on #multilingual #customerservice: https://buff.ly/3nXmy7h

#WeSpeakYourLanguage #outsourcing
Open Access BPO
Open Access BPO3 days ago
Get acquainted with Open Access BPO's operation facilities in the Philippines, US, Taiwan, and China.

Need help deciding which location best suits your #multilingual #callcenter needs? Contact us today: https://buff.ly/3zrnOBv

#WeSpeakYourLanguage #Outsourcing
Open Access BPO
Open Access BPO4 days ago
Enjoy these benefits when you outsource your #callcenter services:
✅ 24/7 availability across all support channels
✅ Flexibility and convenience
✅ Cost reduction

Learn more: https://buff.ly/2W0kyQ4

Message us to outsource today: https://buff.ly/3zsVdMr

#WeSpeakYourLanguage #multilingual #outsourcing
Open Access BPO
Open Access BPO5 days ago
As a #multilingual #outsourcing firm, Open Access BPO supports global companies and their clientele. #GDPR compliance ensures seamless #DataSecurity and access for customers.

Every consumer Open Access BPO touches has the freedom to choose how their personal data is handled and stored. https://buff.ly/3nP1IXB

Do NOT follow this link or you will be banned from the site!