Questions to Ask Your Outsourcing Company (+ Top Staffing Agencies You Should Partner With)
There’s a lot of demand for remote Filipino workers. This is why 1,000 Business Process Outsourcing (BPO) firms employ over 1,300,000 skilled Filipinos. It’s also why 100,000+ new workers join the talent pool annually; demand is high and only getting bigger.
As a result, the Philippines' account for 10-15% of the world BPO market. But with all the outsourcing firms in the country, how do you find the best partner for your business?
This article walks you through the most crucial questions you should ask. It also lists top BPO providers and gives you the advantages and disadvantages of outsourcing to the Philippines.
Ready? Let’s go over the basics first: the pros you’ll enjoy when outsourcing and the cons you should watch out for!
Why Do Businesses Outsource to the Philippines?
Outsourcing solutions has become a global phenomenon, and the Philippines has emerged as a premier destination for SMEs seeking to outsource their business processes. Why? Its well-known benefits (which we’ll discuss further in the next section) allow businesses to grow.
According to multi-awarded global outsourcing expert Ralf Ellspermann, business processing outsourcing (BPO) to the Philippines is advantageous not only for heavy hitters of the business world but also for startups and SMEs. How? Two words: cost saving.
Cost saving is typically the primary reason for most businesses that outsource. Tapping outsourcing service providers or remote staffing companies in the Philippines can save up to 70%. Depending on the staff you hire, some options can go as high as 83%.
For example, a small business in the United States that needs to set up a call center can save significantly by outsourcing to the Philippines. The cost of hiring and training local staff and providing the necessary infrastructure can be pretty expensive. By outsourcing, the business can tap into the affordable labor market in the Philippines and redirect their savings toward other initiatives.
Apart from cost reduction, there are several other perks that SMEs can take advantage of.
Advantages of an Outsourcing Company in the Philippines
Imagine a place where outsourcing your business tasks becomes cost-effective and incredibly efficient. Welcome to the Philippines – where a goldmine of outsourcing advantages awaits you.
1. Large and young talent pool
The Philippines has a population of almost 110 million people, and 76 million of them are of working age.
You can imagine the Philippines as a giant talent reservoir. It's home to a vast number of talented individuals, and many of them are young and eager to work. This youthfulness means they bring fresh ideas and energy to the table. If you need tech experts, there's a good chance you'll find young, tech-savvy professionals ready to tackle your projects with enthusiasm.
2. Good quality labor
Recent consensus shows about 97% of Filipinos are literate, and it’s no wonder! Filipino workers are like the MVPs of the workforce. They're star athletes dedicated to their craft. Whether it's customer service, web development, or creative design, they take immense pride in their work. They go the extra mile to ensure that what they deliver is top-notch. It's like having a team of champions working for your company.
3. Above-average to native-speaker English proficiency
Communication is key to any successful collaboration. 88% of the Filipino population can communicate in English. Some are so skilled that you'd think they grew up speaking English.
Moreover, the Philippines has ranked 22 out of 111 countries with a score of 578 (high proficiency) in 2022’s English Proficiency Index (EPI). This high level of English proficiency ensures you can easily convey your ideas and needs. It's like having a conversation with a friend who understands you perfectly.
4. Strong government support for BPO
The Philippine government has supported the BPO industry since its inception in the late 1990s. They actively support outsourcing companies like yours, offering incentives and benefits. It's like having a wise mentor guiding you through the business world. This support can help your business save money and thrive in the competitive market.
5. Hardworking culture and polite attitude
Filipinos have a work ethic that's second to none. They're like dedicated artisans, always striving for excellence in whatever they do. Moreover, they're known for their politeness and respectfulness. This creates a positive and harmonious work environment where everyone works together toward common goals.
From its abundant young talent pool to its commitment to quality, the Philippines is where your business can thrive and grow.
Disadvantages of an Outsourcing Company in the Philippines
Outsourcing companies in the Philippines also have some drawbacks you should be aware of and prepare for.
1. Poor weather conditions
The Philippines is known for its unpredictable weather, including typhoons and heavy rainfall. This can sometimes disrupt operations, especially if you rely on a physical office location. For example, during typhoon season, flooding and power outages may occur, affecting productivity.
Solution: Have a backup plan
Create a plan for bad weather. This should include options for remote work, backup power, and ways to protect your data. Test and update this plan regularly to ensure your business can keep running during bad weather.
2. Many holidays
The Philippines has one of the most extended lists of holidays in the world. They have 12 regular holidays and 8 special non-working days in 2023. These holidays can affect the availability and productivity of outsourcing workers and cause delays.
Solution: Adjust work hours
Holidays are common in the Philippines. Work with your outsourcing partner to change work hours or schedules to fit around holidays. Plan for holiday coverage in advance and let your team know what to expect during these times.
3. Negative perception
Some businesses and customers have concerns about outsourcing to countries like the Philippines. This is because of worries about data security and language barriers.
Solution: Choose a trusted outsourcing company in the Philippines
Pick an outsourcing partner with a good reputation for security and privacy. Share your security measures with clients to build trust. You can also train your outsourced team in language and culture to improve communication.
4. Negative effect on customer satisfaction
If not managed well, outsourcing can sometimes negatively impact customer satisfaction. For example, if customer support agents need help understanding customer inquiries due to language differences, it can result in a frustrating customer experience.
Solution: Improve communication
Invest in training to boost language and communication skills for your customer support team. Monitor and improve how your team interacts with customers. Use tools for translation and interpretation to bridge language gaps.
5. High employee turnover rate
Employee turnover can be challenging in the Philippines. Some workers may change jobs frequently, seeking better opportunities or higher salaries. This turnover can disrupt workflow and require additional time and resources for training new employees.
Solution: Keep employees happy
Implement strategies to keep your employees, like offering competitive pay and opportunities for growth. Recognize and reward excellent performance to motivate them to stay. For example, at MultiplyMii, we have helped a financial services company increase employee retention by 14.9% through remote upskilling opportunities.
While these disadvantages exist, it's important to note that they can be managed effectively with proper planning and the right outsourcing partner. By addressing these challenges proactively, SMEs can still enjoy the benefits of outsourcing to the Philippines while minimizing the drawbacks.
Questions To Ask Your Outsourcing Partner
Do your homework and research the potential outsourcing partners you are considering. It's important to ask the right questions for a successful partnership.
- What is your track record in the industry?
Ask your outsourcing partner about their track record in the industry, such as:
- How long have they been in business?
- How many clients have they served?
- What kind of services do they offer?
- What are their success stories and testimonials?
- What are their awards and recognitions?
This can help you assess your outsourcing partner's credibility, reputation, and experience. You can also determine from here if they can meet your expectations and standards.
- Can I speak to your former clients?
Ask your outsourcing partner if you can speak to their former clients. This can help you get first-hand feedback and insights from the actual customers who have experienced working with them. Ask about their satisfaction level, challenges, issues, best practices, and recommendations.
- Do you have a portfolio of work?
Ask your outsourcing partner if they have a work portfolio showcasing their previous projects and outputs. With this, you can see the quality of their work. You can also request samples or demos of their work relevant to your business domain or industry.
- What is the level of quality you can offer?
Get to know the level of quality your outsourcing company can offer. See:
- How do they measure, monitor, and improve quality?
- What are their quality standards and benchmarks?
- What are their quality assurance processes and tools?
- What are their quality metrics and indicators?
This helps make sure they can provide high-quality services that meet or exceed your expectations.
- How much are your fees?
Find out:
- How do they charge for their services?
- What are the factors that affect their pricing?
- What are the payment terms and conditions?
- What are the hidden or additional costs?
- What are the discounts or incentives they offer?
This can help you compare different outsourcing options. Choose the one that fits your budget and offers the best value for money.
- Do you have a contract?
Ask your outsourcing partner if they have a contract that outlines the scope, terms, and conditions of their outsourcing agreement. This can help you protect your rights and interests. It also helps you avoid any misunderstandings or disputes with your outsourcing partner.
Review the contract carefully and make sure that it covers all the important aspects of your working relationship, such as:
- Service level agreements (SLAs),
- Key performance indicators (KPIs),
- Confidentiality clauses,
- Dispute resolution mechanisms,
- Termination clauses
- What hardware or software are you using?
Request to know what hardware or software your outsourcing partner uses for their services. This helps you make sure they have the necessary infrastructure and technology to deliver efficient and effective service. You should also check for adequate security and backup systems to protect your data and information.
- Is your company culture aligned with mine?
Get to know your outsourcing company’s culture. What are their values, vision, mission, goals, policies, practices, and the like?
Knowing this will help determine if your outsourcing partner has a company culture compatible with yours. See if you share the same vision and direction. It also helps to check if your partner has a good working environment and a positive organizational climate that fosters teamwork and collaboration.
- Does your team have the expertise in my area?
Inquire about your outsourcing partner’s team composition and expertise. Ask:
- How many people will be working on your project?
- What are their team’s qualifications?
- What are their skills and experience?
- What certifications do they have?
This can help you see if they have the right team to handle your specific business needs and requirements.
- Can you be flexible to suit my business needs?
Ask your outsourcing partner about their flexibility and adaptability.
- Can they adjust to your changing business needs and expectations?
- Can they handle peak or off-peak seasons?
- Can they accommodate special requests or customizations?
This can help make sure your outsourcing partner can provide tailored and scalable solutions that match your business goals and objectives. You should also check if they can provide timely, accurate reports and feedback.
By asking these questions, you gain valuable insights into an outsourcing company's capabilities, reliability, and suitability for your business. Remember, selecting the right outsourcing partner can make or break the success of your outsourcing journey.
Top Outsourcing Companies in the Philippines
The list below shows the top business process outsourcing companies in the Philippines. It ranks companies by revenue and market share. These companies have proven track records of excellence. They also have established processes, talented employees, and solid reputations.
Accenture
Accenture is a multinational professional services company in the Philippines. It is a technology and outsourcing company specializing in digital transformation for businesses. Their offerings include consulting, technology services, and BPO.
Teleperformance
Teleperformance delivers customer support, technical services, and other related functions to clients worldwide. The company has created job opportunities for Filipinos and contributed to the economy.
Sutherland Global
Sutherland Global is a multinational company that provides top BPO services in various industries. The company has over 30,000 employees in the Philippines. They offer customer service, technical support, and back-office processing services.
Honorable Mentions: Offshore Outsourcing Companies That Connect Filipino Talent with Businesses Worldwide
MultiplyMii
MultiplyMii is a leading offshore staffing company. They help global businesses scale by hiring the top 5% of Filipino professionals. They offer success-based HR solutions: sourcing, hiring, and retaining your remote staff.
Remote Staff
Remote Staff is an established offshore staffing company based in the Philippines. They provide remote staffing solutions for various industries. Also, they connect businesses with skilled Filipino professionals.
Sourcefit
Sourcefit offers customized staffing and outsourcing solutions. They focus on recruiting and managing Filipino professionals to support their clients' needs.
These companies offer various outsourcing services. This includes call centers and data entry to financial services and digital marketing. You can count on them to provide quality work and exceptional communication. But remember to research before collaborating with a third-party service provider. Doing so ensures the most favorable results.
Grow and Build Your Dream Team in the Philippines
What if we told you there's a way to tap into the advantages of outsourcing without its complexities?
At MultiplyMii, we've uncovered opportunities for SMEs seeking to scale while onboarding top-notch talent.
With our expertise, you can access the exceptional skills of remote Filipino professionals while saving on costs and ensuring quality service.
Get the benefits of outsourcing minus the challenges through MultiplyMii’s seamless remote staffing solutions.
Ready to take your business to the next level?
Book a discovery call with us today, and let's build your dream team together.
