When it comes to business decisions like outsourcing, it’s important for company leaders to weigh all their options and understand the benefits and risks of the process. While outsourcing to countries like the Philippines can have many great benefits, both for the company’s bottom line and for the morale of workers, it may not be the right solution for every business. Here’s what to consider before you decide whether outsourcing to the Philippines is the right choice for your business needs.
Pro: Outsourcing services in the Philippines can cost less than ten times the cost of in-house services. While the average Australian call centre worker makes about $20 an hour, and higher for more specialised roles, the average salary of workers in call centres in the Philippines is only $8 an hour. What’s more, these salaries are considered competitive in the country’s job market, so quality candidates are still clamouring for a spot in many BPOs in the Philippines. Thus, choosing to use contact centre outsourcing in the Philippines assures high-quality services for only a fraction of the cost.
Con: Outsourcing can be a more costly process for some businesses that already have an established local workforce. While most businesses will benefit from the cost reduction associated with BPO in the Philippines, this isn’t the case across the board. In certain situations, it may be best to hold off on outsourcing until a role or need opens up, rather than letting go of well-performing in-house employees. Laying off current workers and switching to outsourcing may seem like a great idea in the short term, but factoring in severance packages, lost labour during the time it takes to switch to outsourcing, and lowered employee morale, profit may actually be lost. Instead, the right course of action is to wait until a position opens up or the business has a new need to fill to consider outsourcing.
Pro: BPOs in the Philippines employ a highly-educated workforce that is eager and motivated to start a career in BPO services. Many employees of call centres in the Philippines are not part-time workers looking to make some extra cash – they are career professionals in the field. The government of the Philippines has invested money into nationwide educational initiatives to make BPO training accessible to all students, and many have taken advantage. These days, employees often have a strong and varied skill set, including customer relations, foreign language interpretation, data entry and accounting, and more.
Con: Outsourcing to any foreign country requires basic knowledge of the international laws and possible policies to abide by. If this is not something you are willing to do a bit of research about, outsourcing may not be the right choice. However, for a company that is looking to have more global reach, outsourcing provides a valuable opportunity to tap into new markets as well. Additionally, outsourcing to the Philippines is made especially easy thanks to the government deregulation of the industry. Working with BPO companies in the Philippines has never been easier thanks to this – but it’s important to be aware that it still requires some initial legwork.
Although there are a few decisions where outsourcing may not be the right choice yet, it’s a matter of when not if. Throughout the lifespan of most companies, outsourcing will likely be a
part of their workforce – whether that is directly or indirectly. For many, the benefits clearly outweigh the risks when it comes to outsourcing services in the Philippines.