The Philippines has been well known for its warm, hospitable residents, world-class attractions, various culture, and picturesque landscapes. But for the past twenty years, the island has gained fame for its thriving and expanding call center outsourcing industry. So right now, the Philippines holds the top spot in the world as a contact center outsourcing destination.

According to Ralf Ellspermann, the CEO of PITON-Global and one of the leading mid-sized contact center providers in the Philippines stated that “large firms such as Microsoft, Google, and Target have made investments in outsourcing their contact centers to the Philippines because outsourcing call centers in the country have been proven an effective strategy for businesses of all sizes in terms of saving costs and boosting productivity.

Let’s consider some of the underlying reasons why multinational corporations can benefit from outsourcing to the Philippines.

Minimizes Expenses

The primary factor that drives businesses to take this path is because of cost reduction. Companies will be able to save more money on employment because the Philippines has much cheaper labor costs than those in other nations. Additionally, it will help the company lessen tertiary expenditures like paying for office space, computers, software, resources, and such. Therefore, reducing these overhead expenses will allow the company to save up to 50% compared to internal operations.

Young and Technology Inclined Population

With an average age of 25 and a 97% literacy rate, the population of the Philippines is relatively youthful and educated. This group is known to be technologically savvy since they were raised in a technology-driven society. Many of the students have access to top-notch education and government-provided curriculum that was tailored for professions in the outsourcing sector. Every year, more than 500,000 college graduates, that are equipped with an advanced set of training enter the call center industry.

A Robust Government Support

The Philippine government puts in great efforts to foster and support the nation's outsourcing sector, aiding its expansion by establishing an investment-friendly setting that promotes business initiatives for startups and SMEs. In the Philippines, significant tax reductions and income tax holidays are provided to call centers, helping them to compete internationally.

Adaptability

Companies may expand rapidly and effectively without needing to invest in infrastructure or finance by setting up an offshore call center in the Philippines - which makes it possible to swiftly and affordably grow teams. In contrast, team size can also be easily lowered if there is an idle business season or if the outsourcing sector goes through a tough economic period.

24/7 Assistance

In the Philippines, contact centers operate nonstop, with employees working both day and night shifts to serve clients from all over the world. With this kind of immediate access, outsourcing companies may double their business capacity. Therefore, being available 24/7 improves the quality of customer care since teams can respond to questions, problems, and complaints from customers day or night, especially on weekends. To be precise, 24/7 assistance produces customer satisfaction, loyalty, and retention.

As a key takeaway, these are just a few benefits that are associated with working with call centers in the Philippines. But, one thing to remember is that "outsourcing encourages firms to concentrate on the core essentials of managing a successful and financially rewarding organization that is structured for profitability and development" as stated by Ellspermann.