MANILA, Philippines — It’s now a well-known fact that outsourcing to call centers in the Philippines can help companies reduce costs, boost business efficiency, improve employee productivity and provide the competitive advantage needed to succeed in a challenging global economy.
For over 20 years, the Philippine BPO industry has done just that for Fortune 500 companies and SMEs alike.
“For many companies, outsourcing to the Philippines offers a cost-efficient alternative to operating an in-house contact center or outsourcing to onshore providers. In fact, partnering with call centers in the Philippines can save companies 40 to 50% on operating costs,” said Ralf Ellspermann, chief executive officer of PITON-Global, one of the leading mid-sized call centers in the Philippines.
“It is no surprise that the Philippines is now the world leader in call center outsourcing,” he added.
The mistake of choosing cost over quality
These types of savings can be enticing to companies looking to save money wherever they can. But many companies become so fixated on the savings potential that they never stop to consider what they are paying for. They assume that all Philippine outsourcing providers are created equal and that the level of service will be the same across the board.
According to Ellsperamnn, “They couldn’t be more wrong. The quality of service offered by call centers in the Philippines can vary wildly. With over 800 contact centers operating in the country, it’s ludicrous to think they are all the same,”
“The truth is—in the Philippines and elsewhere—the hourly rate that a provider charges strongly indicates the level of service that companies and their customers, can expect to receive. Typically, the higher the rate, the better the service and vice versa,” he added.
When outsourcing customer service functions, you literally get what you pay for.
Paying higher rates is a great investment
“Smart and outsourcing-experienced companies see the advantage of partnering with premium contact centers in the Philippines that typically charge $12 to $14 per agent hour. Some might consider that high, but it still generates at least 50% cost savings compared to onshore vendor rates. This higher expenditure is worth it for companies looking for more bang for their buck,” Ellspermann shared.
That’s because premium Philippine providers put a large percentage of their earnings right back into the business. This gives them the funds to hire and retain the best and brightest agents who bring a wealth of talents to the workplace.
Among these talents is a high level of English proficiency. Since companies from the US, UK, Canada and Australia are the Philippines’ biggest outsourcing clients, the agents’ mastery of the English language works as a considerable competitive advantage.
“Premium call centers in the Philippines can also afford to invest in state-of-the-art facilities and cutting-edge technology. This includes artificial intelligence, advanced analytics and omnichannel support that represent the future of how business is conducted,” Ellspermann said.
Going cheap doesn’t pay
Low-end providers simply can’t match the same quality of service their premium competitors offer. While their intentions may be good, a lack of revenue, profits and resources seriously weaken their service quality. The best they can offer is low rates, which can be enough to attract companies that are similarly cash-strapped.
In return, however, these companies receive shoddy service that can seriously impact their revenue, ROI and customer service.
“That’s a steep price to pay in a business world where customer experience is integral to a company’s success,” Ellspermann said.
“The lesson here is that investing in premium call centers in the Philippines is money well spent. While finding a premium call center provider may take time and patience, the payback in enhanced customer service and a better ROI will justify the effort," he concluded.