Offshore contact centre outsourcing to the Philippines – A proven business strategy to lower costs

by Jeremy

The Philippines – The world’s largest and leading contact center outsourcing destination

The Philippines is quickly growing to be a powerhouse in the global economy – with forecasted growth in GDP from 360 billion USD in 2020 to more than 850 billion USD by the end of the decade. But what may be surprising is that the country, which historically focused on importing goods throughout its recent industrial revolution, now boasts an impressive service-based sector contributing a significant portion of its GDP. Specifically, the Philippine business process outsourcing industry – that’s BPO for short – contributes more than 7% of growth to the country’s GDP annually, and it’s a figure that’s only expected to increase in the coming decade. The Philippines is the leading contact center outsourcing destination – some good reasons exist.

Offshore contact centre outsourcing to the Philippines – A proven business strategy to lower costs

The main reason for the success of call centers in the Philippines, as is with all businesses, is cost. Workers in the Philippines have a minimum wage of 5 USD a day, which can afford them the necessities in a country with a relatively low cost of living. Contact centers in the Philippines offer competitive salaries that average about 20 USD a day to recruit top talent. This salary attracts young professionals from the top colleges in the nation, excited to begin a white-collar career in the BPO industry. Some hard-working and talented BPO workers can make more than doctors. Even with such a competitive wage, BPO workers cost foreign companies almost three times less than their counterparts in Western nations, where the minimum wage can be 15 USD an hour.

Moreover, while in-house workers often need paid time off, outsourcing sick days, health insurance, and retirement plans to the Philippines isn’t the case. Instead, the BPO companies can take care of these benefit programs separately, and packages often cost far less than in the US, UK, and other Western nations. In this way, outsourcing services in the Philippines can save businesses thousands of dollars in wages daily, resulting in high-quality services provided by motivated, well-educated employees.

But more than just savings make the Philippines’ BPO industry a shining star. The Philippines has a long history of amazing hospitality, as evidenced by the booming international tourism industry. Moreover, many citizens are very aware of Western culture, values, and ideals due to the country’s status as a former US colony. They are very fluent in English – even without an accent. This can greatly benefit the Philippines’ ability to do business with Western companies and work in client-facing roles where customers expect impeccable communication and respect.

BPOs in the Philippines have grown over the last decade, and the industry shows no signs of slowing down. Cost is not the only factor weighing companies when outsourcing to the Philippines, although it is a massive benefit. Thanks to the country’s amazing culture of hospitality and respect and awareness of Western ideals, call center employees in the Philippines are ideal outsourcing employees. With so much to offer, the country’s BPO industry undoubtedly has a bright future ahead.

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