Reasons To Outsource Customer Service To The Philippines
A study by McKinsey found that companies that prioritize customer experience achieve more than double the revenue of companies who don’t provide as good CX. This highlights the value of great customer service in business success and the importance of choosing how and who to outsource customer service operations to.
Holding 10-15% of the global outsourcing market, the Philippines is one of the leading outsourcing destinations globally, especially for customer service. Below are reasons why.
Strong English
When outsourcing to an offshore destination, the biggest barrier is language. While English is an international language spoken all around the globe, many countries don’t have high English proficiency. Meanwhile, the Philippines is the 3rd largest English-speaking country globally and ranks 2nd in terms of English proficiency in all of Asia. This gives them an edge over other top outsourcing destinations like India, Malaysia, and South America, in terms of customer service, especially since their known to have a more neutral English accent.
Unparalleled Hospitality
Hospitality is one of the key traits of a good customer service professional. And this virtue of being warm and welcoming to guests and visitors is embedded in Philippine culture, passed down from one generation to the next. It’s in the Filipinos’ DNA to be hospitable, which is reaffirmed by the Philippine being one of the friendliest countries in the world. With this hospitality, Filipino customer service specialists have made a name for themselves as warm and friendly agents, offering best-in-class customer service.
Government Support
As one of the key drivers of the country’s gross domestic product (GDP), the Philippine business process outsourcing (BPO) sector receives government support. From the Board of Investments, Philippine outsourcing companies enjoy tax holidays, tax exemptions, and simplified import and export procedures. Meanwhile, the Philippine Economic Zone of Authority (PEZA) provides incentives for companies in the outsourcing industry, including those providing customer support services. These helped the industry to continuously grow despite the Covid-19 pandemic, a testament to the stability of the Philippines in terms of a customer service outsourcing destination.
Call Center Capital
The Philippines may not have the largest population, the most educated workforce, or the best infrastructure, however, it still manages to outshine other countries in terms of call center services. This is why the Philippines remains the call center capital of the world despite tight competition -- its large English-speaking population, high English proficiency, robust government support, competitive pricing and tax incentives, all make the Philippines a hard-to-beat outsourcing destination, especially for voice-based services like customer support.
Reduced Costs
It’s almost impossible to talk about the Philippines as an outsourcing destination without mention of its significant cost saving potential. As a developing nation with lower labor costs relative to countries like the US, UK, and Australia, the Philippines can offer up to 70% cost savings through outsourcing. Not to mention, the cost of outsourcing already includes benefits, infrastructure, management fees, and so on, eliminating the requirement for many resources that contribute to even greater savings for foreign clients.
Different Ways of Outsourcing Customer Service To The Philippines
When it comes to outsourcing customer service to the Philippines, there are multiple arrangements you can engage in depending on your objectives and preferences. Below are four ways you can do it!
Traditional Call Centers
Traditional call centers provide dedicated customer service teams that handle inbound and outbound calls. These centers are equipped with the necessary infrastructure and technology to manage high call volumes efficiently.
Key Benefits:
- Scalability: Easily scale up or down based on call volume.
- Cost Savings: Benefit from lower labor costs in the Philippines.
- 24/7 Support: Provide round-the-clock customer service.
Dedicated Offshore Teams
Dedicated offshore teams are exclusively assigned to your company, working as an extension of your in-house team. These teams can be tailored to meet specific business needs and are fully integrated into your processes.
Key Benefits:
- Customization: Tailor the team to your specific requirements.
- Consistency: Maintain a consistent level of service and brand alignment.
- Control: Have greater control over team management and operations.
Shared Service Centers
Shared service centers provide customer service support to multiple clients. These centers use pooled resources to deliver cost-effective solutions without compromising quality.
Key Benefits:
- Cost Sharing: Share costs with other clients, reducing expenses.
- Efficiency: Benefit from established processes and best practices.
- Flexibility: Access a variety of services without long-term commitments.
Freelance Customer Service Agents
Hire freelance customer service agents for short-term projects or to handle peak periods. This model offers flexibility and cost savings for businesses with fluctuating customer service needs.
Key Benefits:
- Flexibility: Easily scale up or down based on demand.
- Cost Savings: Avoid long-term commitments and overhead costs.
- Specialized Skills: Access specialized skills for specific tasks.
Step-By-Step of Outsourcing Customer Service To The Philippines
Whether you choose to outsource customer service by working with one of the top call centers in the Philippines, by building your own dedicated offshore team, or by employing shared service centers or hiring freelancers, it’s important to follow the right process to ensure outsourcing success. Here are the steps you should take to help you achieve your customer service objectives through outsourcing.
Step 1: Assess & Plan
Before outsourcing, you want to do a thorough review of your current customer service processes and identify areas of improvement that can be addressed through outsourcing. Determine which roles or processes you want to outsource, and list all the tasks involved. Know the level of complexity of the tasks, and already set criteria on the skills and experience needed when outsourcing the role or process.
Step 2: Research & Shortlist
With clarity on what you need, start looking into the top customer service outsourcing companies in the Philippines to find out whose services and expertise match your requirements best. The goal is to find an outsourcing partner who’s worked with companies similar to yours. This ensures a smaller learning curve, easing transition, minimizing errors, and maximizing efficiency.
When researching, start by looking at the companies’ websites and social media profiles. Check out case studies and portfolios to see their past work and gauge whether they can meet your expectations. And lastly, book meetings or calls to get better insights in the companies’ solutions and capabilities.
Step 3: Set Expectations & Sign Contract
Once you’ve selected an outsourcing company, discuss expectations with your service provider. Talk about timelines, costs, potential hidden charges, and contract length. Timelines are crucial especially for companies who don’t have customer service teams ready to go. Meanwhile, costs and hidden fees need to be identified early on – will you be charged if there’s rework? How much do overtime pay cost? And if you choose to sign the contract, how long will it last, and what would happen if you want to end it early?
Knowing these details prior to contract signing helps you understand the agreement you’re entering, and will guide your outsourcing partnership, ensuring the best outcomes.
Step 4: Onboard & Manage
Your Outsourcing partner will source, hire, train, and vet your offshore customer service team in the Philippines. Then, you will work together in onboarding your offshore customer service team, introducing them to your systems and processes, giving them access to tools, and introducing them to key stakeholders.
Once they’re full onboarded, the last step is to manage your offshore team. This has never been easier with outsourcing partners managing everything for you. So you just receive reports, communicate regularly, and have meetings whenever needed to ensure alignment in terms of goals.
Outsource Customer Service To The Philippines Today
How do you provide the best experience to your customers while being efficient and cost effective? The answer is to outsource customer service to the Philippines, particularly, to a company like KDCI Outsourcing with over a decade of experience providing high-quality customer support to customers in various industries like retail, healthcare, and property management.
Learn more about outsourced customer service with KDCI. Contact us today!
