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Cost-Effective Outsourcing in the Philippines: Savings on Overhead Costs

Anyone running a business knows that cost-effective outsourcing is what companies utilize to compensate for their businesses to run smoothly. Looking at the bigger picture, a huge portion of that overhead involves payroll and managing people. That is why looking for the cheapest labor worldwide is the obvious path. However, money is usually tied to quality, and businesses cannot work well with a limited budget. That is why BPO companies that offer the cheapest service end up with the highest churn rate. The lack of a well-grounded management team is one of the culprits.

But even when you’re paying for the 50th least expensive call center, you save more than when you decide to build an in-house team. It all boils down to comparing not just the bills but also the time and effort enterprises expend. The Philippines is still the leading country for western companies to outsource — for a couple of good reasons. We will go over them in this article.

So, how cost-effective is it really when outsourcing in the Philippines?


Recruitment and Employment Needs

One can outsource multiple business sections, including shipping and handling, manufacturing, customer service, accounting, etc. But by the end of the day, the shared element of these departments is that people administer them. The workforce keeps it going, and it’s more likely the part that will cost a lot besides the space, equipment, and technology. To understand how cost-effective outsourcing is, one should know how much it costs to get people to work for you, maintain the quality of their work, and keep them motivated and happy to stay in their jobs.


cost-effective outsourcing difference in salaryDifference in Salary

The salary difference is what makes cost-effective outsourcing possible. There is also a big difference in salary patterns in western countries from developing companies offshore, especially in the Philippines. The cost of living in the Philippines is cheaper than in the west. It’s also the cheapest compared to its neighbors, so outsourcing to this country could reduce payroll expenses by up to 86% while providing them with competitive and decent earnings.



Talent Acquisition Cost

Paying your agents is one thing; acquiring them is another cost. Companies looking to outsource sometimes forget that there is also a price in recruitment. A human resource team tasked with identifying the right candidates is also a workforce expenditure. Not to mention the cost of establishing a recruitment marketing strategy and launching them to entice a talent pool to apply for a job.


BPO companies have perfected this process. We understand the importance of quality recruitment. We always employ the best human resource people and develop certain steps and principles that improve our hiring practices to save money and time while maintaining the quality of our recruits. Outsourcing means leaving all of this behind and will save you more than starting from scratch with your in-house recruitment team.


Training Costs

All new hires need some training. Even the most proficient and experienced agents would need time and guidance to work around a new system. In call centers, that means learning new scripts, getting used to them, and mastering a different software program to work with. All these trainings are, of course, paid hours. You would also need a training officer with a knack for imparting new skills to newbies.

Well-established BPO companies operating in different industries already have this covered. They have invested in a well-organized training strategy, the right manpower, and comprehensive equipment. You can save more with OBPO through our free training promo for our clients.


Employee Retention Costs

You’ve acquired your staff, paid their salaries, and trained them so they would create results. Regardless, managing employees need much more than that to keep their productivity high and their loyalty to you. Companies value employee retention because replacing employees costs time and more money. The top employees of your business are worth ten times more than getting a new one.

So what are the costs of ensuring that your best workers don’t leave? Paying above-average wages will help but won’t cut it. Building a conducive workspace that will brighten their mood is one. Creating a workplace culture that aligns with improving their physical and mental health is another. A happy and contented workforce means growth and productivity. That is why OBPO promotes a performance and result-driven environment while acknowledging that our employees are not machines and should be treated as human beings. Our human resource department creates channels where our employees can be heard and programs outside their line of work for their well-being.

Outsourcing saves you time and money and gives people working for you the opportunity to grow and enjoy their jobs through proficient and pro-people management.


Quality Control

By now, you’ve already spent for salary, recruitment cost, training, and employee retention procedures, but it does not end there. You would need quality control measures to ensure productivity is at an all-time high so your company can reach its goals. This last step of getting a dedicated team of quality keepers gets scrapped by most SMEs because its seen as an additional unnecessary expenditure. It is sometimes crammed into the responsibilities of managers and executives – adding more strain to their already stressful jobs.

BPO companies recognize the importance of an effective organizational structure and guarantee quality outcomes by placing career development officers in every team. In the long run, it doesn’t just save you money but increases the chances of customer retention.


OBPO and its sister companies have delivered cost-effective outsourcing to our clients in the US, Canada, UK, and Australia. Our clients have saved up to 86% of their costs by partnering with us. Learn more about OBPO through our FREE CONSULTATION.