With the rise of the COVID-19 pandemic and the war between Ukraine and Russia, inflation is a hot topic on many people’s minds – especially small and medium-sized business owners. While larger companies may have the choice to weather the storm of temporarily increased costs due to rising petrol prices, this isn’t always the case for smaller companies, where profit margins are often already tight. Short of laying off workers, how can small businesses continue to operate as they normally do without raising prices so much that they scare off customers? Sometimes, it’s worth taking a page out of the playbook of large companies. Outsourcing, historically thought of as an expensive and lengthy process only undertaken by sizeable corporations with significant ties overseas, is now easier than ever – so much so that even small business owners can benefit from it.
For the majority of western companies, the Philippines is the ideal contact centre outsourcing destination. The country, which has quickly grown to be a global leader in the industry, boasts a booming BPO industry that contributes more than $30 billion to the world economy annually. What makes BPOs in the Philippines uniquely qualified for outsourcing, especially for smaller and mid-sized companies? The two primary reasons are simple – a competitive price range for both workers and western companies and a wide array of services offered by qualified employees.
For the average small business owner, using full-service call centres in the Philippines may not be a necessary investment. Still, there are many business processes that a sole entrepreneur could benefit from outsourcing, from creative work like graphic design to more specialised software design. Rather than commissioning an expensive freelancer in the west or hiring a new employee, both processes that can get expensive quickly, outsourcing to the Philippines can be a cost-effective solution.
While the average wage for a specialised worker in the US can be more than 50 USD an hour, the average wage for a BPO software engineer in the Philippines is only 30-50 USD a day. The same is true for less specialised work in a call centre in the Philippines, which mid-sized businesses may be more interested in partnering with, due to higher customer volume. While the average call centre worker in the US and UK makes around 15 USD an hour, outsourcing to the Philippines costs only 40 USD a day. What’s more, with offshore outsourcing, there’s no need for businesses to worry about benefits packages that include retirement plans, health insurance, holidays, and sick leave – the BPO companies can take care of that.
The best part is this: paying less doesn’t equate to low-quality service when using outsourcing services in the Philippines. On the contrary, while BPO wages seem incredibly low for western businesses, the low cost of living in the Philippines actually makes these wages competitive. For this reason, BPO work is not thought of as a part-time job or a stopping point to a better career. In the minds of young, college-educated professionals, working at outsourcing companies is the dream – a stable, well-paying career with opportunities for continuing education and upward mobility. Thus, foreign businesses both large and small have the opportunity to work with extremely qualified individuals for a fraction of the price.
With unbeatable prices for foreign businesses and competitive wages for local students, there’s no question that BPOs in the Philippines offer the best value for money when it comes to outsourcing. As the country continues to invest in this industry, its growth and contribution to the global economy will continue to skyrocket – it’s time that small and mid-size business owners take the plunge and experience the benefits of outsourcing to the Philippines.
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