Many businesses have the knowledge about the benefits of outsourcing to the Philippines, and have taken the step forward. However, there is still a large portion of the market that simply does not know much about it or is lacking connections to have the confidence to move part of their business offshore.
Essential list of facts to know about outsourcing and getting offshore remote staff in the Philippines.
– The United States and Australia are the two largest markets for BPO (business process outsourcing) services in the Philippines.
– Its westernized culture and strong English proficiency are some of the reasons people choose the Philippines.
– Time Difference is not an issue. Filipino employees are flexible and willing to work shifts even if it means working at night, on holidays, and challenging schedules to accommodate clients regardless of where they are located in the world.
– The most common type of work outsourced to the Philippines is contact or call centre services. That includes virtual assistants, sales, technical support and customer service via phone, email, chat, social media and video.
-Other popular services that are outsourced in the Philippines are accounting, data processing, digital marketing (such as SEO and Google Ads campaign management) and graphic design.
– There are two popular BPO models in the Philippines: Fully managed service (traditional outsourcing), where the BPO takes responsibility for KPIs and outcomes; and Staff Leasing model, where the BPO recruits, employees, processes payrolls and takes care of all the local government compliances, but does not directly manage them.
– You can create specialised teams that directly support your operations. These teams are usually made up of reporting analysts, process management, workforce management, and quality assurance specialists, as well as the training department.
– Performance is tracked daily, weekly and monthly, and scorecards are used to drive efficiency through consistent scheduled coaching and performance improvements.
– Whether in the United States, Australia or Europe, Philippine call centers operate around the clock, matching the client’s time zone and operational hours.
– The Philippines are prone to typhoons from July to October, and depending on the area of the call center you may need to have a business continuity plan (BCP) in place in case there is an impact.
– The Philippines call centre industry is structured to be able to deal with processing written application, first interview, assessment and skills testing, second interview and job offer all on the same day or week!
– Manila has 75% of outsourced activity in the Philippines.
– After Manila, Cebu is the biggest area for outsourcing in the Philippines.
– In the Tholons Services Globalization CITY INDEX – 2019, Cebu is rated 12th in the world, while Manila comes in second.
– You should consider the COVID-19 travel restrictions and direct flights to the city where you are outsourcing, unless you prefer to work with fully remote teams in which case it would not matter.
Wages, Costs, Pricing and the Call Center Industry
– Filipinos earn a fraction of workers in the United States, Australia and Europe. While income is significantly lower, so are living costs such as food, rent and public transport.
– The Philippines is more expensive than India, partly due to movements in the exchange rate of the peso and rupee relative to the US dollar. In 2010, the Philippines surpassed India for the market share in English-language voice customer services.
– Filipino talent is a low-cost alternative for businesses, but that does not mean quality is jeopardised. The difference in labour costs, benefits, and operational effectiveness between countries makes the Philippines an appealing location to outsource and grow an offshore team. The great thing about outsourcing in the Philippines is that business owners pay less for more.
– BPO employees receive a number of benefits over and above their basic salary and annual and sick leave. These include but are not limited to, rice allowance, tax free allowance, life cover and private health cover for them and family members.
– The employee benefits and the salary package are the number 1 reason for staff working in the call centre industry, followed by personal development and career advancement.
– The call centre industry is one of the top paying in the country and a career that many young Filipinos pursue.
– Many contact centres as part of their screening guidelines require a colleague or university degree as an entry level requirement.
– With the maturity of the call center industry in the Philippines, it is not unusual to find contact centre applicants with an extensive 10-15 years’ experience.
– Lots of call centre workers travel for hours from the provinces each day to work in the city as the jobs are much better paying compared to the jobs available in the provinces.
– The BPO and IT outsourcing industry are one of the largest sectors that supports the Filipino economy, employing more than 1.5 million people
– The Business Process Outsourcing sector brought revenues of over US$25.5 billion just for 2019 alone.
– Despite the decline of low-skill job roles, the mid-skill to high-skill positions are increasing and will be seen as a growth sector this year.
– Professional and specialised roles like game development, graphics design, SEO and digital marketing roles are expected to grow more.
– Analysts expect that SME outsourcing will continue its growth in the coming years as local businesses are fighting to survive the pandemic and are looking for cost effective solutions in the Philippines.
11 Benefits of outsourcing to the Philippines
Outsourcing to the Philippines offers US, Australian and European businesses incomparable benefits, such as, but not limited to:
Cost reduction – depending on the business model and location (office or home based) you choose, you are to make savings between 50% to 75%.
No HR management – CyberOne will help you recruit new staff, replace existing staff, manage any HR issues, as well as take care of payroll.
Access to talent where there is a skill shortage – Philippines has an available talent pool in many areas such as software and app development, graphic and web design, SEO, and digital marketing.
Setup speed – Business process outsourcing companies such as CyberOne are constantly doing manpower pooling and screening candidates, ready to start a new project in a short time.
The Philippines is a home of the world’s largest BPOs from Australia, United States and Europe. This provides diversity and a collaboration of best practices around customer excellence.
Better customer experience – Opportunity to invest in technology using the savings from manpower costs allows companies to scale up their business. Also the reduced cost of labour makes it more affordable to hire more staff and improve turnaround times of tasks and reduce queue wait times.
Focus on the big picture – outsourcing repetitive or time consuming tasks will allow you to dedicate your time in growing your business.
Redundancy – by parallelly running two or more sites for your operations (onshore/inhouse and offshore in the Philippines), you secure a business continuity in the event that one site is impacted by unforeseen circumstances.
Reduction in legal actions – having a BPO partner that takes care of all government and employee responsibilities will drastically reduce any legal action that you would normally face it inhouse/onshore staff.
Process improvements – when outsourcing to the Philippines it allows a third party to review and suggest process improvements that you might not be aware of. In the process you will also discover that there may be no written documentation on how a certain task needs to dine, and it will give you an opportunity to create a user manual and structured process and procedures for the future onboardings.
Strong Government Support. As one of the main revenue generators for the country, the Philippine Government sees the growth of the industry and provides strong support and infrastructure for BPOs. Some government initiatives go as far as creating Partnerships with universities in the Philippines to create BPO-specific curricula to prepare the future BPO workforce as well as technical education and skill development authority (TESDA) is funding training for applicants that want to enter the BPO industry.