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Running a startup or a small or medium-sized enterprise (SME) can be difficult, even at the best of times. But when the economic climate gets tough, smart businesses need to adopt smart, creative strategies that will help them not just survive, but thrive.

“Cost reduction should be at the heart of every company’s strategy for weathering economic downturns. Particular attention should be paid to financial problems that can drain money on a daily basis. To this end, companies must reduce unnecessary expenses, protect cash flow, reduce labor costs and make smart use of available cash,” says Ralf Ellspermann, CEO of award-winning PITON-Global. call center outsourcing provider in the philippines.

These days, American companies are successfully achieving these goals by outsourcing call center requirements to the Philippines. The move provides them with an economic lifeline by reducing costs, improving efficiency, reducing risk, and letting management focus on increasing revenue. In short, outsourcing to the Philippines offers startups and SMEs a solid return on investment.

Contact center outsourcing in the Philippines is not a passing phase. The country’s business processing outsourcing (BPO) industry has seen steady growth over the past two decades. The Philippines is now the largest and most important contact center outsourcing destination in the world.

In fact, 2021 has been a banner year for the country’s call center industry. According to statistics, revenues reached US$26 billion in 2021. The industry created 120,000 new jobs, ending 2021 with 1.4 million workers, a 9% increase from 2020. This substantial growth shows no signs of slowing down as experts predict BPO in the Philippines will generate over US$29 billion by the end of 2022.

The reasons for this explosive growth are many. Lower labor costs, a highly skilled and educated workforce, strong English proficiency, and lower capital and operating expenses are attractive advantages for U.S. companies seeking to save money. Here are five of the most effective cost-cutting benefits that can help SMBs survive in a tough economy.

Savings on labor costs are perhaps the most important reason why American companies outsource to the Philippine BPO industry. “Wages are more than half of those in the United States, with Filipino call center agents earning US$4-6 an hour instead of the US$12-15 US workers earn. Businesses can save significantly on long-term labor costs by partnering with contact centers in the philippinessays Ellspermann.

Business owners who outsource to the Philippines can save big on secondary “pain points” costs such as rented office space, legal and HR fees, office equipment, taxes and overheads like Internet and electricity. Plus, they have access to the latest software and technology, saving them the cost of buying and upgrading their own.

When the economy tightens and people spend less, SMEs need to improve their customer service if they want to retain their existing customer base. Companies that outsource customer support services to the Philippines are not bound by US time zone limitations, so their customers get the 24/7 support they want and need . Outsourcing to the Philippines can also help drive revenue by improving metrics such as first call resolution, average handle time, and customer satisfaction.

Outsourcing call centers to the Philippines reduces the cost of acquiring qualified employees. Businesses don’t need to spend a lot of money on hiring and training staff because twenty years of BPO success gives the Philippines a huge workforce of young, highly skilled and English-speaking workers. Additionally, the Great Resignation didn’t hit the Philippines as hard as the United States, so companies don’t have to worry about constant turnover.

Since the costs of contact center outsourcing in the Philippines can be 40-50% lower than in the US, migrating these services to the Philippines makes economic sense for revenue-starved startups and SMEs. . “The cost-saving benefits highlighted here can not only help small businesses weather economic storms, but also provide an affordable, proven way to set themselves up for long-term success. There is no doubt that call center outsourcing in the Philippines is here to stay,” concludes Ellspermann.