In recent years, many US companies have outsourced their contact center operations to the Philippines to help improve their customer service offerings while cutting down on operational costs. According to the IT and Business Process Association of the Philippines (IBPAP), there are currently more than 700 contact centers, formerly called call centers, operating in the archipelago, employing approximately 1.4 million individuals and generating a revenue of US$29.1 billion in 2022. These statistics clearly show the impact of the industry on local employment and the economy as a whole.
But why do US companies choose to partner with Philippine-based contact centers? In this article, we will explore ten (10) key reasons why outsourcing your customer support team to the Philippines is a beneficial choice.
- Cost Efficiency
Because of low labor costs, most US companies invest in contact center outsourcing solutions in the Philippines. However, what makes the country stand out is the cost-to-skill ratio. Besides employment wages, businesses can also save on infrastructure and operational expenses, as Philippine BPO providers typically offer full-service solutions, including advanced technology systems and facilities, in their services.
- Round-the-Clock Operation
With a strategic location across multiple time zones, the Philippines can offer round-the-clock customer service to meet the needs of global businesses. The time difference between the Philippines and the United States is particularly beneficial for contact center companies, as it allows them to handle operations during off-hours in the US and ensure customer support is available 24/7, particularly in the healthcare, telecommunications, and eCommerce industries.
- Skilled Workforce
The Philippines boasts a large pool of highly skilled and educated professionals from diverse backgrounds who specialize in the fields of customer service and technical support. Besides being well-educated, Filipinos can learn quickly and adapt to new challenges. This depth of talent ensures that US companies can rely on Philippine-based outsourced teams to handle various customer services, from basic inquiries to more complex technical support tasks.
- High English Proficiency
One of the main factors that draw foreign companies to outsourcing to the Philippines is their excellent English proficiency. According to the EF English Proficiency Index of 2022, the Philippines ranked 22nd globally with a score of 578, placing second behind Singapore in Asia. Another characteristic of Filipino speakers is their natural accents, which makes them excellent candidates for contact center services and technical support to ensure effective communication with customers and clients.
- Cultural Compatibility
The Philippines shares cultural similarities with the United States because of its historical ties and exposure to Western media influences. This cultural alignment is evident in how Filipino agents naturally engage with American customers. They are well-versed in US holidays, social norms, and even popular culture, enabling them to establish a strong connection with customers. This also helps improve the quality of service and boosts customer satisfaction by understanding and relating to the customer’s context.
- Government Support
The contact center outsourcing sector is a significant driver of economic growth in the Philippines. Thus, the local government has committed itself to supporting this industry to promote long-term success. This support includes several initiatives, such as training programs like TESDA courses and increased investment in internet technology solutions. Additionally, lawmakers have proposed the protection and security of tenure for BPO workers, including social security payments, taxes, housing options, and health benefits.
- Professional Work Ethics
Politeness, hospitality, and friendliness — these are just three essential qualities of Filipinos that are highly valued in the customer service industry. They are also renowned for their exceptional work ethic, which revolves around empathy and respect, making them excellent agents and customer service professionals. Furthermore, Filipinos are a good choice for a remote team since they can deliver exceptionally high-quality service and cultivate meaningful relationships with colleagues and clients.
- Flexibility and Scalability
US companies typically outsource to the Philippines due to its adaptable workforce and reputation as a premier outsourcing hub. Establishing a contact center outsourcing team in the Philippines enables rapid and efficient scalability without capital investment or infrastructure prerequisites. Investors may also downsize their workforce if they encounter seasonal work or a business downturn. They can also negotiate agreements with outsourcing providers that offer minimal commitments and highly flexible terms for efficient service delivery.
- High Customer Satisfaction Rates
The combination of skilled agents, cultural compatibility, and professional work ethics has contributed to high customer satisfaction rates for contact center services provided by Filipino agents. They can handle thousands of customer inquiries with tact and patience, making customers feel comfortable while resolving their issues. As a result, businesses experience increased customer loyalty and positive feedback, further highlighting the Philippines’ status as a premier outsourcing destination.
- Data Security and Privacy
Some contact center companies handle sensitive data, including insurance policies, medical records, and personal financial information, on behalf of large multinational companies. Fortunately, the Philippine outsourcing industry has an excellent track record of safeguarding confidential information. To maintain client satisfaction and align with international data privacy standards, the government revised the Data Security Act and Special Economic Zone Act, reinforcing the country’s commitment to data protection in the outsourcing industry.
Takeaway
With its favorable economic conditions, cultural compatibility, and skilled workforce, the Philippines is an ideal location for outsourcing customer support and back-office functions. These factors not only guarantee operational success but also improve customer relations, making outsourcing to Philippine contact centers a cost-effective and strategic move for US companies.
Today, the Philippines’ contact center industry is poised for expansion, further strengthening the economic ties and collaborative opportunities between foreign investors and the Philippines in the evolving global business landscape.
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