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Offshoring: Is Philippines Next Big Destination? Print E-mail
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Thursday, 25 September 2008
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Offshoring: Is Philippines Next Big Destination?
Key Selection Criteria
Recommendations

Recommendations


Organizations considering offshoring their contact center—whether for customer care or technical support—should consider an outsourcer with centers in the Philippines, both for the low cost and high quality of service.


To evaluate the offshoring option, follow the steps below, either internally or with the help of an outsourcing consultant:


1. Evaluate the business case. Compare the current cost of running the contact center with the cost of outsourcing. When considering the current costs, remember to factor in overhead including real estate and the capital expense of technology refreshes. When evaluating the cost of outsourcing remember to include the cost of establishing and maintaining the outsourcing relationship, legal fees for contract review, travel, and product specific training of the outsourcer's agents.


2. Compare to alternatives. Offshoring is not the only way to reduce contact center costs and solve recruitment and retention headaches. Consider other options like those under, "Alternatives to Offshoring" above.


3. Find and evaluate prospective vendors, whether these are outsourcers with a corporate head office in the client's home country and contact centers in the Philippines, or those with both head office and contact centers in the Philippines. Some outsourcing clients interviewed for this research chose an outsourcer with its head office in their home country, for ease of contact and for liability concerns (they wanted to be able to sue a local firm if the contract was not respected). Others selected a Philippine-based company because they concluded that it could more successfully manage Filipino agents. In either case, collect the names of prospective outsourcing partners through referrals and industry directories; for example, in the membership list of the Contact Center Association of the Philippines. After developing a shortlist, begin evaluating the prospective partners. For more information on assessment, refer to the forthcoming ITA Premium research note on evaluating a contact center outsourcing provider.


Bottom Line


The Philippine contact center industry has grown rapidly and is now a close second to India in terms of market share. Provided that the customer service quality can be maintained and the costs of managing the outsourcing relationship do not overwhelm the savings from offshoring, contact center outsourcing to the Philippines is a good investment.





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