The Philippines is a promising country that has developed into a global outsourcing hub, capable of serving companies in the West and the rest of the world. Millions of businesses in the U.S. are aware that outsourcing some of their key functions to the Philippines is a practical business strategy. By doing so, business owners can balance quality services and cost efficiency — which is often quite a difficult challenge.
Going for an outsourced team in the Philippines? It’s not as tricky as you think. The first step should be to find a reliable outsourcing partner who can identify the best candidates in the job market and onboard and oversee them. Did you know that there is over 1.2 million Filipino talent available in the job market working in over 800 Business Process Outsourcing (BPO) companies? These outsourcing partners first started by catering to customer service functions, but have now expanded to offer hundreds of digital services. So, there’s definitely a provider out there who specializes in your particular functions and industry.
Previously, we explored the soft benefits of hiring a Filipino team. Known for its skilled workforce and strong English proficiency, outsourcing Filipino staff is an ideal strategy for American enterprises. This time, let’s shed some light into the often-overlooked benefits of outsourcing to the Philippines that include the financial aspect and beyond:
The financial benefits of outsourcing to the Philippines
- Low Cost of Labor
The main reason why companies want to outsource is the low cost of labor. Outsourcing to the Philippines can save you up to 70% on your labor costs compared to hiring in-house staff. In fact, companies can save up to 90% in wage payouts.
How is this possible? On average, BPOs in the Philippines charge US$8–$16 per hour for their services. Compared to the steep hourly rates charged by call centers in the US, which can go from US$24–$32 per hour, this is a huge difference!
In a year, one employee’s salary will cost you about $5,800 — which is 318,000 Philippine pesos — the average call center agent salary in the Philippines.
- Save on Operational Costs
Aside from wages, you can worry less about overhead and upkeep when outsourcing. Hiring from the Philippines can save you 70% of operational costs, compared to keeping your team in-house.
When outsourcing, you won’t have to deal with these types of costs, since the cost of renting a location or office is waived, since it’s included as part of your outsourcing contract fees.
Beyond cost savings: Aside from financial comfort, what benefits are there?
These benefits are not necessarily financial, but can still affect the performance of your business, ultimately leading to increased productivity and profitability.
- Enhanced Customer Experience
When you outsource to the Philippines, your outsourcing partner can monitor customer satisfaction through qualitative data such as KPIs. You’ll have a clear grasp on how pleased customers are with your outsourced team’s service. An increase in your company’s customer satisfaction will improve consumer perception — which will bring in new and repeat customers!
- Faster Response Time
In terms of customer service, immediate feedback and quick resolution of issues are crucial. 33% of customers get frustrated when put on hold. Meanwhile, another 33% lose their enthusiasm when asked to repeat themselves when speaking with support. Reducing the time it takes for your customer support team to understand and acknowledge a customer request is critical to client satisfaction. By outsourcing a well-trained and knowledgeable team from the Philippines, customer concerns can be resolved quickly without issues, thanks to Filipino staff’s high communication proficiency.
- Greater Competitiveness in Your Market
Companies that take advantage of outsourcing services are booming. 54% of companies have leveraged outsourcing by 2022, and this number will continue to grow as more companies discover their hidden potential when they work with outsourcing providers in the Philippines. Other companies in your market will keep outdoing themselves — so it’s best not to get left behind!
In conclusion…
Outsourcing to the Philippines is a surefire way to achieve a business’ goal of reducing operational costs. But aside from that, you’re in for plenty of positive changes when you partner with an outsourcing company from the Philippines.
A strategic partnership can elevate your business to new heights, thanks to a dedicated team taking care of behind the scenes tasks. Outsource with FGC+ today and discover how much it can change your bottomline. We’ll take care of sourcing and recruiting, all the way to onboarding a team specific to the functions you need. Estimate your cost savings when outsourcing with us through our Cost Savings Calculator here.