Why Outsource After Hours Support To The Philippines

Posted on:
June 13, 2024
min read
Table of Contents
What are the benefits of outsourcing to developing countries?
What are the challenges of outsourcing to developing countries?
Top 5 Most In-demand Developing Countries for Outsourcing
What are some successful examples of companies that have outsourced to developing countries?
What are the best practices for outsourcing to developing countries?
7 Reasons To Outsource After Hours Support To The Philippines
KDCI Outsourcing
June 13, 2024

After Hours Support: Why It Matters

When was the last time you needed customer service but the agents are already offline and will get back to you on the next working day? The frustration you felt is exactly why companies are starting to offer after hours support. 

According to a Salesforce research, as much as 77% of customers expect to immediately interact with a person when they contact a company. But as of 2023, only 54% of companies offer customer service after office hours. 

Providing after-hours support not only enhances customer satisfaction but also increases brand loyalty and customer retention, crucial factors in today's competitive market. Extended support hours can lead to higher customer lifetime value and positive word-of-mouth referrals. These give companies that offer extended customer service a competitive edge over other brands.

Why Companies Outsource After Hours Support To The Philippines

There are many countries offering excellent customer service. But why does the Philippines hold almost 15% of the global market share for global BPO, with customer service as its leading outsourced service?

Cost Efficiency

Hiring a customer service agent to work after hours costs 10-20% more in the US as night shifts require premium pay. Such additional costs can be too heavy for some companies, especially when there are lower cost options such as outsourcing to developing countries like the Philippines where cost of labor is lower.

In an after hours customer service case study conducted by KDCI Outsourcing, US companies can reduce their staffing costs by 45% while extending their customer service coverage to 24/7 support.

More than the difference in labor costs, the significant cost reduction is attributed to the FTE outsourcing model, wherein companies can build their customer service teams offshore while the outsourcing partner takes care of everything from hiring and training to onboarding and management for a fixed outsourcing cost.

Skilled Workforce

39.2% of companies looking to outsource to the Philippines are interested in customer support services. This is unsurprising considering the Philippines is the world’s call center capital with over 700 call centers and over 1.3 million professionals supporting brands globally.

The demand for Filipino customer service agents can be attributed to their excellent English, high literacy, and hospitality. 

Because the Philippines is the 3rd largest English speaking country in the world, ranking 2nd in English proficiency in all of Asia, its customer support professionals are renowned for their excellent communication skills with English speaking customers in the US, UK, and Australia. 

It also helps that the country has a very high literacy rate of 97%, and has hospitality ingrained in their culture. Such skills make Filipinos in high demand for BPO, especially as a top destination for offshore customer service.

24/7 Support Capabilities

The benefit of hiring after hours support in the Philippines is not only due to lower labor costs, but also because they are located on the other side of the world, with very different time zones as the US, Europe, and Australia.

It makes outsourcing off hours to the Philippines a viable option since their after hours are normal working hours in the Philippine time zone. Not to mention, customer support outsourcing companies in the Philippines are used to shifting schedules. 

This means that companies not only have the option to hire after hours customer service, they can choose to do so for any shift, even 24 hours and during weekends and holidays.

High-quality Customer Service

The top customer service outsourcing companies in the Philippines have been operating for years or even decades. They already have systems in place to ensure the highest quality service when it comes to customer support. 

To keep up with tech advancements, these firms leverage advanced technologies like AI and automation, which streamline routine inquiries and allow human agents to handle complex issues requiring empathy. They also invest heavily in comprehensive training programs and maintain rigorous quality assurance systems to consistently deliver superior service. 

Supported by favorable government policies and initiatives in the Philippines, these companies also benefit from a robust infrastructure, making the Philippines a global leader in customer service outsourcing.

Technological Infrastructure

Philippine customer support outsourcing is quickly adopting new technologies in a bid to stay competitive in a fastly evolving digital environment. The best customer service outsourcing companies in the country are using technologies such as artificial intelligence (AI), robotic process automation (RPA), data analytics, blockchain, virtual reality (VR), and augmented reality (AR) for efficient, personalized, data-driven, and secure customer service.

This offers an attractive proposition for global companies looking to leverage the power of technology while also enjoying the other benefits of Philippine customer service.

Cultural Compatibility

The Philippines has a long colonial history that “places them in a strategic position where they can relate and understand several nations while still embodying their principles, such as hard work, perseverance, warmth, and friendliness,” according to experts at Outsourcing Accelerator.

This cultural compatibility is especially important in after-hours customer support, where the need for empathetic and effective communication is heightened. During after-hours, customers often face urgent issues and require immediate assistance, making it crucial for support agents to not only understand but also relate to the customers' cultural context and emotional state.

Outsourcing to the Philippines offers significant value in this regard. Filipino agents, with their high level of English proficiency and cultural affinity with Western countries, particularly the U.S., can provide seamless and empathetic support. This reduces the likelihood of misunderstandings and enhances customer satisfaction.

Strong Government Support

The Philippine government is a proactive supporter of the local BPO industry, creating special economic zones managed by the Philippine Economic Zone Authority (PEZA). These zones offer a range of benefits to BPO companies, including tax holidays, which can last for up to six years, and exemptions from certain local taxes and duties. These incentives reduce operational costs for companies, making the Philippines an attractive destination for outsourcing customer service.

Meanwhile, the IT and Business Process Association of the Philippines (IBPAP) created Roadmap 2022, which was designed to help the Philippine economy rebound and continue growing despite the challenges posed by the global pandemic. The strategies included are aimed at strengthening telecom infrastructure to support long-term remote work, accelerating investments in talent development programs, and enhancing digital and cybersecurity initiatives. 

Outsource After Hours Support To The Philippines

Delight your customers and keep them coming back by providing them the support they need when they want it.

At KDCI Outsourcing, we take after hours support seriously, and make it a point to build offshore customer support teams in the Philippines that not only have the skills and expertise you’re looking for, but also the soft skills and cultural fit needed to integrate well with your organization and serve as ambassadors of your brand.

Learn more about after hours customer service outsourcing in the Philippines. Contact us today!

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