unlocking-the-benefits-outsource-call-center-services-to-the-philippines

12 Jul

Unlocking the Benefits: Outsource Call Center Services to the Philippines

The global BPO industry’s has been witnessing remarking growth, with an estimated value of US$292.3 billion in 2022 ^[1] and the market is expected to surpass US $477.7 billion by 2030^[2].
APAC holds 60%^[3] of the market share in the worldwide service industry, according to the Everest Group, a leading global research company. The Philippines ranks first for business process service and delivery.^[4]

Why Philippines

When choosing an outsourcing destination, decision makers focus on key selection parameters like costs, regulations, and labor. These factors play a vital role in determining a service provider’s long term sustainability and competitiveness.

Cost Benefits

The cost of living in the Philippines is low, which makes it a suitable destination for reducing labor and operating expenses. The average hourly rate with a premium BPO vendor in the country is US $12-14 ^[5], which is 50% of the US average (US $24-28). You also save on tertiary costs as a business owner, like office space, HR and legal costs, taxes, latest equipment, etc.

Agent Quality

English is one of the official languages of the Philippines, and 92%+^[6] Filipinos speak and understand it. Also, it is a medium of instruction from grade school to college. Education in the Philippines aligns with the American system, as it was a US colony. Clients find it easy to understand the exact skill level of outsourced employees.

1.6 million^[7] students graduated from 200 state run higher education institutions in 2022. The government funds university courses which build skill sets relevant to the BPO industry. They also set up the Technical Education and Skills Development Authority (TESDA) to help fund call center training units. The median age of Filipinos is 25^[8] years. The country’s youth are digital natives and tech savvy, which gives them a competitive edge in the BPO market.

Infrastructure

There are three components to a call center’s infrastructure – hardware, software, and telecommunications. The Filipino government supports players to get the infrastructure they need, whether it’s hardware like computer devices or phone lines. Vendors also use software like Customer Relationship Management (CRM), Quality Management Systems (QMS), and Workforce Management Systems (WMS). A telecommunication network like Voice over Internet Protocol (VoIP) is used to run call centers.

Call centers can be of three kinds – on-premises, on the cloud, or remote. Being on the cloud has enabled even small call centers in the Philippines to provide services like Big Data Analytics (BDA). This includes predictive analytics, text and voice. Algorithms make predictions about call volumes based on past data. Such analytical capabilities empower businesses in decision making and business reporting.

The Filipino government passed the Special Economic Zone Act in 1995 to transform certain areas into highly developed ecozones and to promote both foreign and local investor flow into these zones. The Digital Cities 2025 is another regulation that aims to prepare 25 areas in the country to become BPO hubs by that year, by providing governmental support for infrastructure development, job creation, and marketing.

The BPO industry is the biggest generator of jobs for Filipinos, with 1.44 million direct jobs^[9] and 3.61 million indirect jobs in 2021, according to the IT & Business Process Association Philippines (IBAP). Additionally, BPOs contribute a significant 7.5% of the country’s GDP.^[10]

Data security

Data privacy is a key consideration for business owners who are planning to outsource their customer service. The Filipino government enacted Digital Cities 2025 the Data Privacy Act^[11] in 2012, which aims to protect all kinds of information, personal private and sensitive. It covers both people and businesses involved in processing personal information.

Many Filipino call centers have a data security policy, relating to how they process sensitive information. This should be one of the factors you consider when evaluating BPO options, as it directly impacts the safety and integrity of customer information.

Customer Experience

Filipinos are conversant with American culture, because of their colonial past. They are also customer oriented, friendly and willing to go the extra mile to solve a client issue. Also, the time difference between the Philippines and USA makes it possible to offer 24X7 customer service, which speeds up issue resolution and enhances the customer experience.

Use of AI and ML

AI and ML enable call centers to automate repetitive tasks, analyze customer data and deliver relevant and prompt service. Chatbots answer simple questions, freeing up agents to focus on more complex queries.

AI and analytics use predictive call routing to pair customers with the most appropriate agents. They evaluate each customer interaction based on variables like personality type, past purchase behavior and product or service preferences.

Chatbots use this information to provide personalized recommendations, saving them time when they are planning their next booking. This data is also shown to an agent when the customer calls, enabling him to address his concerns quickly.

Real time monitoring of calls, driven by AI, enables supervisors to review calls as they happen, so they have a better sense of how agents work everyday, rather than attempting to analyze a small random sample of calls. This proactive approach enables them to identify and improve new agents’ issue handling from the beginning, so they don’t become bigger problems.

Required technical certification

Filipino call centers are mostly ISO certified for data privacy, so businesses planning to relocate their customer service here are assured that their customer data is protected. Other industry specific technical certifications like HIPAA for healthcare are also common among call centers here, so companies can partner with Filipino BPOs seamlessly.

Summing up

The Philippines offers multiple benefits to businesses looking for a cost-effective, quality customer service option. These advantages range from agent quality to government support, use of the latest technology and required technical certifications. Consider Flatworld Philippines, a premium call center offering all these and more, when you are seeking to unlock the benefits of contact centers. Request a free quote today.