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Cost reduction and foreign exchange rate are key selling points outsourcing vendors use in closing deals with outsourcers. SMEs like big businesses see the promising possibilities that come with outsourcing. Who wouldn’t take advantage of opportunities that not only minimizes overall cost but also helps in reaping the benefits of growth and globalization?
Small companies and startups want to take a piece of the pie which years ago was exclusive to big corporations. The day to day operations of small business are challenging. The acute number of staff performing multiple functions slowed down growth and hampered expansion possibilities. They either succumb to competition or content themselves with limited options.
Now, SMEs refused to have their backs pressed against the wall. SMEs aspire to expand their business by penetrating new markets in wider territories or go global. They want their growth potential realized. They target for brand recognition in the marketplace. They aim to explore marketing channels and enter niche markets. They turned to outsourcing as their means to achieve these.
Here are 10 reasons why SMEs have resorted to outsourcing:
The task needed to operate and run a business independently limits the execution of vital tasks that pave way to innovation and growth. SMEs usually do more than they can handle thus, clouding the company vision and stunts horizontal growth. Outsourcing takes care of the non-essential loads that keep SME owners on the horizontal track.
Attuned to Market Trends.
To stay competitive SMEs need to stay up to date with what is going on in the market. Changes like new competitor schemes or products, software, payment systems or government policies disrupt operations. These are costly and would entail a lot of catching up. Outsourcing assists with transition or takes some of the load away.
Outsourcing vendors remodel the SME’s business model to lower down operational cost. They give SME owners a “Fixed Menu Pricing” that covers cost-cutting strategies on wages, rental, utilities, sales and marketing campaigns while giving the business market visibility and a better position.
Outsourcing vendors rely on marketing metrics and key performance indicators (KPI) to monitor the effectiveness of their marketing efforts and campaigns. Fluctuations allow them to spot the competition and threats that will be relayed to the client for counter measure formulation.
Outsourcing companies are able to scale the amount of job needed in a quick and timely manner. They manpower backup so SMEs may consider this operations factor, a negligible part of the business as the vendor is charged with handling it.
All companies keep trade secrets that give them an edge over competitors. Outsourcing companies execute security protocols that keep sensitive information like trade secrets, financial and client information safe and secure from both internal and external influences.
Legislation and Industry Compliance
Outsourcing companies stay on top of legislation issues and amendment. They ensure that they and the clients comply with regulatory standards and take care of all documentary requirements needed by statutory agencies. They keep businesses compliant and free from fines or sanctions.
Accurate Financial Reports
Outsourcing vendors have competent financial analysts and advisors that provide SME owners sound financial information to help them make informed business decisions that aligns with their objectives.
Outsourcing companies serve multi-industries. Their vast experience gives them knowledge to vital information that SME outsourcers gain access to along with a team of experts and specialists that will help innovate and improve their business internally and externally.
SMEs have one to three people handling the financials. Having to cover the cost of multitudes of task can be taxing and reflected by poor or inaccurate reports, damaging to the company. Outsourcing solves that issue as bulk of the accounting workload is taken away from the SMEs each month. SMEs only need to analyze and consolidate this detailed report with their overall financials. For inquiries, you can write to firstname.lastname@example.org
Publish Date: February 23, 2019 5:00 AM
In recent years, the BPO business model appealed not only to startup companies and conglomerates but also to small and medium scale enterprises (SME). Having few employees doing in-house call center functions limit the company growth. It overworks the staff which usually leads to burnout or loss of motivation as productively innovative workers.
Outsourcing lets SME business owners define the scope of work assigned to each core employee who can then perform their prime duties effectively without any distractions in achieving the company’s goals, vision and mission.
Outsource vendors handle all the telecalling, monitoring and reporting required by SMEs. Here are some reasons SMEs should resort to outsource their various telemarketing’s functions like appointment-setting, telesales and telecalling to experts:
- Cost Effectiveness
- Skilled Professionals
- Language Proficiency
- Culture Adaptability
- Service-based Orientation and Training
- Data Mining and Lead Generation Avenue
Outsourcing companies handle the intensive recruitment process from interviews, hiring and training. They have a team of recruiters who recruit qualified skilled professionals without disrupting the core operations of the outsourcer.
BPO telemarketers have been trained not only in the telesales, appointment setting and other telecalling activities but also in speech modification exercises to develop a neutral tone that customers will find audibly coherent.
English language proficiency is carefully scrutinized along with culture adaptability that prevents miscommunications with customers. Aside from a specialized script, agents have a rich word bank which enables them to effectively communicate, set appointments and achieve sales targets for outsourcers. This is a huge advantage. Speedy transactions with minimal agent slip ups mean more lead coverage and potential sale. Language is a non-issue.
Agents are also capable of servicing their clients effectively. Their training and office culture cultivates their ability to blend into different cultures. Outsourcing companies ensure that agents are able to deliver a brand’s vision out in the market during the sales process. They are flexible to receive feedbacks from customers which will be later reported to the outsourcer who can apply innovations to better serve the public and discover new perspectives that will aid in product development in achieving continued growth.
Workwise, absenteeism will never be a work disruption issue. Outsourcing companies have sufficient manpower to handle the demands and workload. Aside from supervision and management, skills and product update trainings are conducted by qualified trainers to keep each agent up-to-date with client requirements and market trends.
Agents are also capable mediators. They can relate to clients easily and offer the best allowable pre-designed solutions allowed by SMEs to its customers. The outsourcer, then, wouldn’t have to endure the stress of pacifying unhappy customers. From surveys, outsourcers reported savings of 50-60% on operational cost, customer retention along with above-average marginal growth rate resulting to improved market and KPI metrics results.
Minimum wage is cheaper for entry level positions ranging between US$300 to 400 dollars. This is 40-60% cheaper when compared to the pay rate in industrialized countries. The low labor and cheap rental cost incentives are among the main reasons for outsourcing. For businesses, this is a win-win opportunity. Savings will always mean increased profit margin. For inquiries, you can write to email@example.com
Publish Date: February 22, 2019 5:00 AM
Through the many call centers and outsourcing hubs situated within and outside Metro Manila, the Philippine Outsourcing Industry was able to showcase Filipino professionalism and talent globally. In 2018, Goldman Sachs, the leading investment banking, management and financial firm named it as among the Next Eleven Economies. The firm projected the country to be the 14th largest economy in the world by 2050. Currently an emerging market economy, it is exponentially drawing investors in. Multinational firms like Toyota, IBM and Intel had been mainstays in the Philippines for several years. Investors use them as markers in their feasibility studies before venturing. From them, economic and business analysts are able to quantify investment profitability in the country.
Kittleson & Carpo Consulting recorded that 3 new BPO companies were registered weekly in the Philippines in 2018. The country is still the desired location of many western-based firms for inbound offshore outsourcing operations shown by the $14B in earnings and 1.9M jobs produced last year.
The allure of lower operational costs, low domestic wages and a proficient English-speaking workforce tighten the country’s pull. The Philippine peso’s foreign exchange rate value and wage inflation restrictions also stimulate the influx of foreign investments. A single US dollar investment is multiplied fifty two times as of 2018. Further, the Philippine focus shift from agriculture to service industry in the past decade made Metro Manila the business process outsourcing (BPO) leader and outsourcing capital worldwide; selling quality services and products to developed markets.
According to the 2018 report of the Texan global consulting firm, The Everest Group, the Philippines takes 16 to 18% of the global outsourcing market share. Six of its cities made the 2018 Tholons Top 100 Global Outsourcing Destinations. Manila ranked second place. This ranking is based on business catalyst, operational efficiency, digital adaptability, financial infrastructure, scale and talent availability, cost effectiveness, quality, functional capabilities and sustainability. The country’s top universities offering multiple disciplines are found in the city so there is abundant availability of highly skilled workers. This attracted the first BPOs to set office in the city.
BPOs in Manila are already mature and well-established. From pioneering, outsource vendors here have developed deep expertise in servicing global corporate functions for over a decade. This maturity led to the expansion of these Manila-based BPOs to other logistically and financially advantageous neighboring cities and provincial metro locations. Multiple outsourcing hubs are currently operating in Makati, Pasay, Muntinlupa, Ortigas Center, Pasig, Mandaluyong, Quezon City, Cebu, Davao, IloIlo, Bacolod, Sta. Rosa and Baguio.
The robust and lucrative information technology and business process outsourcing sector in these major areas ensure horizontal business growth to buyers as the BPOs goal is to meet their deliverables for mutual benefit. Outsourcing companies see to it that the service they provide level, if not, exceed world standards. This mission concisely serves the outsourcer’s vision.
Out of the 851 registered BPOs in the country 65% of the outsourcers are US firms. Others from Europe, Australia and New Zealand are also growing in number. Half of these companies purchase medical transcription, data entry, IT-related and animation production services while the other half are call centers. The well-organized and collaborative effort of the government and industry players who coordinate closely in keeping the country’s spot in the global scene made this possible. For inquiries, you can write to firstname.lastname@example.org
Publish Date: February 21, 2019 5:00 AM
Globally, the BPO industry is referred as an economic pillar, lifeline and powerhouse. Offshore outsourcing companies became an integral contributor to world economies. Oxford Business Group (OBG) even described it as “one of the largest white-collar employers” in many countries. The Philippines ranks third in the BPO industry. There are countless hubs in and around Metro Manila; economic zones and provincial metropolitan districts catering and garnering high satisfaction ratings from serviced offices. More so, voice-work here has the highest position in the outsourcing industry, evidenced by the top 16 offshore call center projects the country secured in 2016 and registry of 3 new outsourcing companies weekly.
The 2017 A.T. Kearney Global Services Location Index reported that the Philippines steadily remain a leader in the service industry. This is a very good indicator that the Philippine BPO industry has a strong foothold in the global outsourcing market.
The Philippine macroeconomic model pays close focus, gives leeway and incentives to promote the expansion of global in-house call centers in the country. Initiatives have been undertaken in high-value fields like engineering and legal BPO to design mechanisms that will hinder the threat of automation. It is also proactive in giving the sector all the necessary support including tax shields or incentives.
The country aims to maintain its position in the global market and gain advantage over worldwide competition. Today, BPOs significantly improved their services by merging human and artificial intelligence in their service protocols. This further lure new investments; ensuring millions of jobs and other employment opportunities to citizens while having the success of investors in mind.
Visa, a leader in the Banking and Finance Industry, opened a number of centers in the country to service millions of their clients. Investments like these from major industry players reflect highly on the viability and profitability of setting up inbound offices and having offshore teams here. The country even doubled the World Bank’s estimated lifetime BPO revenue of $50B to more than a $100B.
Aside from language skills, Filipinos are highly educated with strong customer service orientation. They are capable not only in handling diverse customers, knowledge-intensive IT and business services but also research and project development. Filipino workers have proven themselves to be easily and highly trainable. This is a big save on training cost specially, in the IT field.
IT training, for the average Filipino, starts in secondary school. Continuous IT education is later given in college. It is integrated in university curriculums in all fields of learning; making Filipinos computer-literate, even proficient, at the time of employment. This is an advantage investor appreciate.
These factors make Filipinos desirable employees to foreign employers. Many skilled graduates and workers are funneled out of the country by multinational corporations. They have seen and experienced the promising potential Filipino talents contribute to business growth. Philippine GDP Report shows that overseas remittances from migrant Filipino workers account for the 10% of the country’s GDP over the past decade while BPO income contributes 5%.
Further, the Philippine IT-BPM alliance had given the industry a voice. They collaboratively seek to further improve the country’s service quality to secure 15% global outsourcing market share as stated in its Roadmap 2016-2022.
Roadmap22 aims to further improve the skills of BPO agents to become globally competitive. It will arm Filipino talents with multi-industrial expertise, keep up with technological innovations in AI, software, analytics, big data and use them to the benefit of the emerging sectors serviced worldwide. This assures growth and profitability to the country and to all inbound offshore operations. They project that this will further boost the country’s market standing globally. For inquiries, you can write to email@example.com
Publish Date: February 19, 2019 5:00 AM
Managing your facilities is not just about having a group of people maintain your work area or do maintenance activities on your AC. It is a huge responsibility which, if not done right, can have a significant impact on your day to day operations.
But why should you outsource your facilities services to a vendor, and what is it?
Facilities outsourcing is a process in which you hire a contractor to take accountability of your facilities management arm. It includes maintenance services and ensures that the work environment is safe.
But what are the benefits of doing this?
Facilities outsourcing in the Philippines is a growing industry because the vendors know what they are supposed to do. The mechanics and facilities experts are not just those who know how to fix your plumbing system; they are also trained to comply with the expectations laid out by the law in relation to environmental hazards.
Depending on your city and industry, the government may require you to comply with L.E.E.D standards, which includes legal expectations when there is a repair or renovation needed.
If you hire your facilities team internally, chances are one is going to be out sick one day. Or there could be an emergency. Whatever happens, one absence can impact your sanitation or the safety of the work environment, let alone making sure that all the equipment is in the proper working order.
This will not happen with outsourcing facilities teams. If someone is out, they have a healthy roster of employees who can serve as a temp to replace the absent employee assigned to servicing you. Because of this back-up system, you can expect an uninterrupted service.
Facilities management require skill. The employees who belong to this organization need training. If you hire your own, chances are you do not have the expertise to keep these employees up to date with trends and legal expectations.
But if you outsource, you can expect that the services are at par with your standards. If you manage your own facilities group, there may also be non-performing employees that you cannot remove immediately for fear of the impact on your daily activities.
But with an outsourced group, you simply have to report the erring employee, and he may be replaced immediately.
Have Business Focus
Managing your facilities team can take you away from more important matters—the business operations and your customers. You have to meet your facilities team, deploy them to their specific tasks, check their work, compare it with the standards, manage their sick days, rotate their schedules, determine costs of repair, and so much more.
A facilities team is like any other team. They need guidance. And if you have an in-house facilities department, you will not be able to fulfill you’re your other duties.
You are better off hiring a facilities manager and having him work with an outsourced group.
An outsourced facilities group has several benefits. You can reduce the work of your staff, save on the costs of paying for employee benefits, and decrease legal risks if there is an injury. For inquiries, write to firstname.lastname@example.org.
Publish Date: February 19, 2019 5:00 AM
A business incubator works in a similar manner with a baby incubator. When a baby is born, you need to put him in an incubator as he adjusts to his environment after birth. In business, an incubation set up is a place where a new entrepreneurial can receive management training and office space.
You can set up your offshore business and seek the help of business incubators in the Philippines.
But why should you do this and what are the services that you can get?
Setting Up the Business
When you start a business in the Philippines, you need people on the ground. And this is where an outsourcing company comes in. First off, you need serviced offices to provide you with seat leasing options.
The outsourcing companies have offices fully set-up for your use. As a business, you need:
- Office space – can be set up in cubicles or any other way you prefer
- Utilities like power, water, internet, phone lines – all ready and functional
- Network Operations Center – includes hardware that is ready for integration with your business
- Computers and peripheral – state-of-the-art models equipped with modern software
- Office furniture – comfortable furniture like tables, and chairs
- Other rooms that you may need such as a board room or training room, pantry
All of these are ready for deployment and are fully functional.
Setting Up the Employee Preparedness
When you open a business or center with outsourcing companies in the Philippines, you will be leveraging the talent of thousands of experts who have been in the industry for decades. This includes shared services like the following:
- Human Services – experts who understand your hiring needs. They can prepare a document containing minimum skill requirements for hiring, which will be used after your approval.
- Training Department – adept product and language trainers who will prepare the employees to use your systems, comply with your standards, and perform the duties you expect them to do.
- Payroll – a shared department for all employees to manage the salary disbursement of the employees
- Facilities – a department dedicated to make the workplace a safe environment.
- IT – the department responsible for managing the NOC and fixing hardware or service network issues.
After the set-up, the outsourcing vendor in the Philippines can also provide you with a dedicated managed operations. These are management-level employees who will oversee your daily operations, ensuring that every cog in the operations is working.
You can also expect senior managers to provide support to the operations group. These leaders will be hired in accordance with their tenure as managers, and in relation to your industry.
Every business needs all the help it can get, especially if it is an offshore team. To do it right, you need the support of experts who have been setting up and operating offshore programs.
The Philippines is the go-to country in the world when it comes to outsourced services, including business incubation projects. The country is the global capital of the BPO industry and has been at the forefront of market leadership in the last two decades. For inquiries, write to email@example.com.
Publish Date: February 19, 2019 5:00 AM
The Miss Universe Crown is not the only crown the Philippines possesses. As early as 2010, the Philippines was officially recognized as the BPO hot spot of the whole world.
The Philippine outsourcing industry has been around for more than two decades.
Having said that, the next thing we need to discuss is not how this came to be, but why the country is the best choice as far as outsourcing your business is concerned.
So why choose the Philippines?
1. Talent Pool – there are outsourcing companies here that employ more than 15,000 people, and that is just one company. The industry has a presence in the three major islands of the country, and they are all located in top tier-cities like Makati and Ortigas Center. Looking for employees is never a concern.
2. Maintain Core Business – you must outsource so you can focus on your business core like product development, brand strengthening, or service delivery. You cannot make this happen if you have to manage tasks that can be done remotely.
3. Labor Cost – the cost of labor for BPOs in the Philippines is competitive. An hour’s worth of labor in U.S. or Australia is close enough to meet the labor cost of a Filipino employee per day. You will get the same quality of service, or even better.
4. Infrastructure Cost – you do not have to spend building an office or buying equipment. All of these are ready and only needs to be occupied.
5. Education – there are more than 2,000 universities in the country. Every year, thousands of people graduate looking for jobs in the outsourcing industry. You can leverage these talents in customer service, science, technology, engineering, and mathematics.
6. Government Support – if done right, you can enjoy government benefits such as lower taxes and subsidies of some utilities if you do business in the country.
7. Accessibility – the country may have more than 7,000 islands, but there are major international and domestic airports all over it. You can travel to the offices knowing that you do not have to endure long hours of traveling by land.
8. Expertise – the industry has been around for 20 years. Thousands of people are experts in many verticals, including functions critical to your business such as management, customer satisfaction, and sales.
9. Risk Mitigation – if there ever is a calamity in your own place, your business is not impacted since your partners are in the Philippines. And here, outsourcing vendors split the teams into different areas to ensure there is support despite the occurrence of heavy rains or flooding.
10. Resource Allocation – free up your local resources. Pass on the tasks to the outsourcing vendors in the Philippine so you can use the time of your local employees to drive your core businesses functions.
No matter where you look, outsourcing in the Philippines is still the best option if you want your business done right. In this country, you are leveraging decades of expertise in the outsourcing industry to advance your business goals. For inquiries, write to firstname.lastname@example.org.
Publish Date: February 17, 2019 5:00 AM
There was a time when outsourcing was unheard of in the Philippines. But in the early 1990s, the first contact center was established in the country, and since then it has grown into a BPO hub.
The Philippines BPO industry is the second highest revenue generator in the country, with billions of dollars in annual revenue, next only to the money that the overseas foreign workers generate.
Today, the country is home to a myriad of services, not only catering to business process outsourcing, but also to other business activities such as KPO, ITO, and ESO.
How did the industry grow?
The first BPO was launched in 1992 by Frank Holz through the Accenture Global Resource Center. During that decade, the Philippine Congress passed laws that made the country a welcoming place for businesses to thrive. This law allowed foreign corporations to put up businesses in the country and enjoy low tax rates and government subsidies.
In the late 1990s, companies like Sykes and eTelecare joined the scene, and this was followed by People Support and Convergys in 2001 and 2003, respectively.
As the BPO industry thrived, so did the economy. Real estate companies boomed, and offices were now easier to acquire or rent at affordable rates. And because there was a rise in the country’s economy, more people could go to college, thus giving birth to a pool of talents that can service anything that can be done offshore.
What services can you avail from Philippines ITES companies?
Today, an offshore team in the Philippines is no longer just about contact centers. There are hundreds of services that foreign businesses can outsource here, including back office bank work, payroll, marketing, healthcare, and so much more.
- Contact centers – these are the largest BPO companies in the country, offering services in various verticals and different customer service channels (chat, email, voice) from telecommunications, healthcare, credit card and banking, utilities, and other businesses that require the support of live agents.
- Virtual Workers – these are companies that offer services that do not need customer contact but are leaning towards knowledge process outsourcing activities such as payroll, accounting, game development, big data analytics, graphic designs, transcription services, and social media marketing.
The country remains to be at the top of the outsourcing business globally. And as such, you can expect that an entire economy, including the government, fully supports the industry. If you build your team in the Philippines, you can rest assured that you will get top quality services for whatever it is that you need.
You can collaborate with contact center managers, or manage your virtual workers yourself and ensure that they deliver services at par with your expectations. There is no shortage of talent in the country, and more and more new graduates every year are seeking to become part of an offshore team.
It provides them with an avenue where they can exercise or apply their knowledge—which makes them passionate workers—in the STEM industry, which includes not only customer service but technical and mathematical endeavors. For inquiries, write to email@example.com.
Publish Date: February 15, 2019 5:00 AM
As a medium-sized business, you have to take into consideration that there are several expenses that are not necessary. The processes are important, but there are ways in which you can mitigate costs. One of these ways is outsourcing to the Philippines.
Since there are many kinds of businesses and processes, we will take a small business that requires a 15-seater operation for our theoretical demonstration.
Whether you need contact center agents to serve your customers, or you need virtual assistants, you can use this example to have an overview of how much you can save if you outsource these services to the Philippines.
The Cost of Not Outsourcing
If you do not outsource, the first thing you need to look for is a real estate property. You either build your own, or you rent a facility. Even if you rent, your expenses do not stop there. You need to furnish and build your facility to site your 15 employees. You also have to pay utility bills like the following:
Since these expenses are subjective and will depend on how heavy your usage is, we will not include this in the equation for now. What matters most is the cost of your real estate. Let us say that you will operate in Denver, Colorado.
Here is a table of a basic projected cost of operating a site with 15 people.
COST OF OPERATIONS
|Notes||Cost per Unit|
|Rent||15 people with a cost of $165 serviced space per person||$2,475|
|Salary||15 employees @ 20 days per person with a rate of $5 per hour||$36,000|
|Computers||15 units @ $1,000 each||$15,000|
Your initial cost is more than $50,000 a month. And you have to pay at least $38,000 in monthly salaries and rent, not including your utility costs.
The Cost of Outsourcing to the Philippines
Here are the outsourcing benefits if you do business in the Philippines.
In the Philippines, the average salary of a person is in the range of $20 per day. Now, compare this to your average American labor cost, and you will see that huge variance in the cost of labor.
You will get the same quality of service, or better, if you choose the right partner. Now, since the outsourcing vendor will shoulder your operational costs, it will be reasonable enough to charge the same amount of salary with a U.S. employee. And with a model like this, below is your total cost.
COST OF OPERATIONS
|Notes||Cost per Unit|
|Salary||15 employees @ 20 days per person with a rate of $5 per hour||$36,000|
As you can see, you already have a cost savings of $17,000 right at the start of your operations. As a client, you do not need to worry about utilities, computers, security, gas, power, internet, and all that.
You can still bring down this cost since outsourcing experts know what it takes to add value to your company. There are methods, software, and processes that a vendor can recommend to you to make your process more effective and efficient to drive your bottom line. For inquiries, write to firstname.lastname@example.org
Publish Date: February 14, 2019 5:00 AM
It is a myth that only large corporations have the need to outsource. Anybody who is operating a business must, one way or another, outsource a job that eats time. But what is outsourcing and how can it benefit a small or a medium-sized business or SME’s?
Outsourcing is a process where you let someone, or a group of people do specific tasks for you. In exchange for that, you pay for the services, but a significant amount of your time is freed up, thereby allowing you to think, strategize and execute.
Tasks That You Can Outsource
To name all these tasks is a gigantic effort. But we shall provide some examples later. Ideally, the tasks that you need to outsource are:
- Time-consuming tasks
- Key aspects of your daily operations that can be done remotely
- Those that are important but are not within the range of your expertise
- Some tasks that do not require a full-time employee to perform
- Graphic design
- Inbound or outbound customer service; throw in telesales if you want to so you have an added channel for your sales
- Social media marketing
- Bookkeeping and accounting
There is a whole lot more that you can get done if you outsource to offshore teams of midcorporates. In return, you can focus on the core of your business such as:
- Product development
- Order fulfillment and logistics
- Research and development
Benefits of Outsourcing
Even if you are a single-person business, you can jump into the bandwagon of outsourcing for SME’s, and reap the rewards.
Ask yourself, would you rather make the telemarketing calls yourself for eight hours per day, or have someone do it for you while you focus on creating new products that you can sell?
Apart from getting back your time, here are the other benefits.
- Reduced labor cost – due to economic differences, you can stretch your dollar and get more value for your money if you outsource to the Philippines.
- Pay as you need services – do you really need a bookkeeper per day, or do you want somebody who will do it on a project basis? How about the payroll tasks?
- No infrastructure costs – if outsource, you do not need to pay the rent for an office, let alone the expenses you will typically incur like gas, power, internet, etc. You also do not have to buy equipment like computer, chairs, tables, cabinets, water dispenser, coffee brewer, etc.
So, is it worth it?
It definitely is. Outsourcing for mid corporates is a reasonable and justified investment. The only challenge that many small businesses face is that they want to do these tasks on their own due to lack of funds. But if you perform these duties, you will be stuck to where you are.
And for a long time, too.
Your business will not grow because it has no leader who can strategize. You are using your precious time doing legwork instead of staying at the top and looking at the bigger picture and delegating tasks that your outsourcing vendors must execute. For inquiries, write to email@example.com.
Publish Date: February 14, 2019 5:00 AM
Outsourcing was not the key strength of the Philippines back in the 1970s. It was agriculture, and the Philippines was once a top exporter of fruits and rice to many countries in the world. In the 1980s, the country saw a boom in sending Filipinos as overseas foreign workers. It was in the early 1990s that the call center business first saw the ray of light in the country.
The man responsible for it was Frank Holz. He founded the Accenture Global Resource Center in 1992, and the Philippines BPO industry was born.
As the country was trying to deal with the issues that beset the economy, Congress passed an act that would entice foreign corporations to establish their businesses in the Philippines. This act allowed foreign corporations to enjoy low taxes, and some also enjoyed the benefits of having some of their expenses like utilities subsidized by the government.
It was in 1997 and 1999 that other players entered the scene. These were Sykes and eTelecare.
And then came People Support in 2001. The company set up its office in Ayala, Makati, and provided Filipinos more than 8,000 jobs. Two years later, Convergys put up two contact centers in the country, and its then-president announced that the Philippines is going to be a part of the company’s global plan for expansion.
By 2005, the Philippines outsourcing industry accounted for 2.4% of the country’s gross domestic product and had 3% market share in the global BPO industry. The country was competing against BPO giants like Mexico and India.
By 2010, the Philippines was officially recognized as the world’s BPO capital.
Today, the world’s first choice is the Philippines ITES industry. As the BPO industry thrived, the business leaders also ensured that the country is abreast with the demands and the new technologies that the world needs so the businesses here can provide a truly global service.
Among the key business models that the country can offer are:
- Captive Markets – a system where the BPO is set-up by the parent company itself instead of outsourcing. Examples of these are Wells Fargo and J.P. Morgan.
- Build, Operate, Transfer – also known as the BOT model. In this system, a company will outsource its business needs to the BPO company. For a specific period of time, the BPO company will consolidate all its processes and best practices and turn over all the assets and employees to the client.
- Third-Party – this is the most prevalent business model where foreign companies will outsource some of their business processes to either a contact center or a BPO company. Essentially, the employees are under the care of the contact center, but they use the client’s brand name and processes.
There are other models that one can check out, such as the build-from-scratch model, but the three previously mentioned methods are the most prominent.
Today, it is no longer a question of why the Philippines but rather where in the Philippines should you build your contact center. Or if you are dealing with a BPO company, it is a matter of choosing the right partner do business with. For inquiries, write to firstname.lastname@example.org.
Publish Date: February 12, 2019 5:00 AM
Outsourcing is simply the process of obtaining a third-party institution to perform partial business functions instead of hiring an in-house employee or department.
Outsourcing companies operate to domestically or internationally assist a corporate entity in its activities. Provide support in accomplishing business activities usually of Small-Medium Enterprises (SMEs) and individuals with financial and/or manpower restrictions. But today, more companies regardless of the size are now turning to outsourcing as it is an absolute way for business entities to focus more on its competencies, choosing outsourcing as a way of reducing costs as there will be no need to provide benefits to employees and less expenses are to be worried about.
The progress of Business Outsourcing in Asia
Asia has dominated the world with its Outsourcing expertise. Countries such as India, Indonesia, Malaysia and Philippines are few of the most favored destinations for Outsourcing in Asia as Asia cradles a great population of highly-skilled, educated individuals to perform their expertise. These language-proficient individuals offer their specializations as English-Speaking Customer Service providers, Collections specialists, Outbound Sales Agents and Telemarketing agents.
Top Countries for Outsourcing in Asia
India, one of the world’s preferred Outsourcing destinations, lies in its huge talent pool of resources which has a population of over 1.2 billion people and approximately 3.1 million graduates are added to their workforce every year. This, together with flexible pricing options and high-quality infrastructure and technology are positive considerations for any offshore countries to choose India for Outsourcing.
Indonesia and Malaysia, with enormous government focus in upgrading incentives for investments as well as the strength of English-fluency of both country’s population are only few of their outsourcing advantages.
Cost is the number one reason companies are benefiting from outsourcing in the Philippines. The cost of labor is typically half of the cost in developed countries. The client doesn’t have to pay for office space, taxes and equipment which adds up to more than 60% budget savings. English is one of the top spoken language in the Philippines thus, companies can acquire workforce with guaranteed language competency. These talents are flexible to diversified outsourcing positions- Telemarketing and Collections agents, English-Speaking Customer Service specialists, Outbound Sales Agents and desk support.
Outsourcing in the Philippines opens opportunities for a stronger global corporate market while enabling possibilities to showcase skills and empower capabilities of Filipino experts.
Choose the Right Outsourcing Partner
Established to be the top expert of Outsourcing in the Philippines, Asiatel Outsourcing, handles a complete scope of outsourcing services striving to help clients experience exceptional solutions from across the globe. With extensive knowledge in handling Inbound and Outbound business processes from Web Chat, Outbound Sales to Tagalog, Bahasa, Cantonese and English-Speaking Customer Service through its voice call offerings. For inquiries, you can send us an email to email@example.com
Publish Date: May 25, 2018 5:00 AM
VoIP is a big business. There are multiple categories of players catering to the wide ranging market. The players include Tier 1 Mobile carriers going down to Tier 3 carrier which cater to more fragmented and smaller market niches
Tier 1 carriers typically have a network of their own as they are mobile operator in one or more countries. These carriers exchange traffic with tier 1 and tier 2 or 3 carriers. Tier 2 carriers operate in the same way and may ride on the network of the tier 1 carriers with a concept known as peering. The tier 3 carries may totally rely on network of tier 1 and tier 2 carriers
The market for VoIP is huge and can be used by any of the customer types to name a few:
- It can be a carrier to carrier termination ( between tier 1 and tier 1 or tier 1 and tier and so on)
- It can be corporate or SME market
- Retail market
- Call center market
The market making from all the four categories are jointly catered by tier 1 to tier 3 carriers. The routes needed for any particular destination can be from another market player and this concept is VoIP trading between the carriers. To make this trading market more effective, there are few technical stesp and technical support needed to make this business work
Components of Technical Support for VoIP
- Management of Switch
This is the important part of core technical operations and the technical staff must be competent in handling the switch. A software switch (or softswitch) is the core device in the telecom network that connects calls from one telephone to another across a telecom network or public internet. The technical team must understand functionalities of switches in and out
As explained above that there is a need and big market for carrier to carrier termination whereby by each carrier can get access to routes offered by another. Hence interconnection is an important step between carriers. The interconnection has to be managed by live testing and matching of call details records so that there is no issue in billing or call time reconciliation
- Testing of Routes
There are multiple types of route such as CLI (caller line identification) or NCLI (non-caller line identification) and within the CLI / NCLI, there are different qualities with varying Average Call Duration (ACD) OR Average Seizure Rate (ASR)
The rates vary based on the type of route and its quality within the type. Hence it is very critical to do a testing of route prior to using. The selection of route will depend on the traffic profile of the final user and the cost expectations.
Testing of routes thus is a very important component of the technical support
Routing is the main function of routing the live traffic on a particular route. The routing may need change based on the quality expectation and /or the rate expectation of the end user. The technical team will thus be required to point the traffic towards the right route based on the needs and commercial aspects
- Monitoring of Traffic
Monitoring of ongoing traffic is an important part of the technical support. The end customer may route away traffic in case the requirements are not being met and there can many more scenarios for monitoring of the routes
The technical team monitors the following:
- ACD parameters
- ASR paramets
- Junk traffic, to ensure that some junk traffic is not being sent on a good route
- Call center traffic needs different route, so this also needs monitoring
- Trouble Tickets and Customer Service
As the traffic between carriers can be two ways, there will be scenarios where the either side may not be satisfied with the routes. There can be several complaints that can come up during the course of traffic exchange. The technical team is thus required to:
- Provide an interface to receive and send trouble tickets on chats or emails or phones
- Maintain log of inbound and outbound trouble tickets
- Monitor and track trouble tickets
- Ensure resolution of the trouble tickets
The above six aspects are important for a smooth functioning of the technical support for VoIP. At Asiatel Outsourcing we are experts in handling technical support for VoIP operations or VoIP Trading or Wholesale Telecom business, as these terms are often used interchangeably
In case of queries, please write to firstname.lastname@example.org
Publish Date: November 22, 2017 5:00 AM
After sales support forms one of the most important basis for ensuring long term success of a business. As it is said “Happy customer is the best advertisement” and the converse is also true that a disgruntled customer can create a poor image of the company and its products. With the advent of social media and the current digital age, the time span for damage to be caused by a negative or a positive view has reduced considerably and business have to be swift to manage the customer expectations
It is not uncommon to notice how a new restaurant or a newly released movie becomes either a victim of bad reviews or it gains strength on basis of the positive word of mouth. While, the above is an example based on power of first impression, however doing business is a more intricate repetition of transactions. It may also be observed that once an existing customer is aggrieved it is often followed by ranting on social media which can lead to damage in the brand image.
After sales support has two parts, one being the customer support and the other being the technical support to ensure the continuous service. The technical support is applicable in case of both B2B and B2C customers
Types of campaigns
There can be a variety of technical support campaigns
- 1.B2C Trouble Shooting
This is a basic campaign that requires technical support in areas like getting started. Some of the beginners or non tech savvy persons may find it difficult to start using a particular phone or an electronic gadget. The tech support start can get them off the blocks with guided steps
There may other aspects that may be effecting full performance due to a missing application or a software. The tech support can do the trouble shooting and get the customer to do the right downloads to make the service smooth and as per the design
There are many industries that use this campaign such as IT Hardware ( like PC & Laptops), Smart phone, operating system of computer, white goods like washing machine, online websites, gaming companies and online education companies to name a few
- 2.B2B Technical Support
B2B technical support is a more intricate and involved technical support requiring higher degree of problem solving. This can be provided by telecom companies to its carrier partners or by the IT companies to its customers, or by Internet service providers to its corporate customers to name a few. The industries that need this facility is large and wide
To set up a B2B tech support desk requires the right skills, the right management and also the right reporting which includes the correct maintenance of trouble tickets along with keeping a track of closure timelines
The B2B desk requires a good staffing practice to find the ideal skills sets or skill sets closer to the requirement. The B2B desk also requires the customers to work with an outsourcing partner to upgrade the skills set gap that may be uncovered.
Asiatel Outsourcing has been working on B2B Tech support in Philippines and understand the process to make this complex process work efficiently and also save costs compared to the western economies.
The queries can be sent to email@example.com
Publish Date: October 26, 2017 5:00 AM
The outsourcing industry in Philippines currently employs 1.3 Million personnel. The industry is poised to reach out to over 3 Million at the current growth rates. Taking a conservative view, we can peg the annual growth at 15%.
There are many players in Philippines and the list below is a non-exhaustive list of the largest BPO’s in the Philippines, with approximate team size in 2016. For outsourcing needs, you can avail services from any of these companies or from Asiatel Outsourcing based on your requirements
|Some Leading BPO’s in the Philippines|
Other than the professional outsourcing companies, there are many captive BPO’s set up by multinational companies to take care of their outsourcing needs. Some of the important captives operating in Philippines are mentioned below:
|Some Leading BPO’s in the Philippines|
|S.No||BPO Name||Head Count|
The data is collected from secondary sources through market interactions
Publish Date: March 9, 2017 5:00 AM