Why the Philippines is the Top Destination for Outsourcing Customer Service

The fast business world of today requires companies to be as efficient as possible if they are to be market leaders. As an entrepreneur, we understand that you consistently brainstorm new ways to give your business a competitive edge.

One effective way is to outsource different aspects of the business so that your in-house team can concentrate on other high-value priorities that give your business the most significant forward velocity it requires.

Customer service has recently become the most critical business growth determiner, and nothing drives customers away from your business better than inefficient customer support. Even in the age of AI and automation, human interaction remains at the heart of effective customer relationship management.

The Philippines is the go-to destination for global companies looking to outsource their customer service. In this blog post, we dig deeper into why this phenomenon exists and how your business can gain its own customer loyalty “cheat code” when you outsource your customer support to a Philippines customer service outsourcing company. Read on.

How The Philippines Became the Global Leader in Customer Service Outsourcing

Every success story has a beginning, for the Philippines to be the global leader it is in customer service outsourcing, it needed the vision of entrepreneurial minds, favorable government policy and dedicated citizens. Here is a detailed breakdown of this ascend to prominence.

Where It All Began

The shift by most businesses to prioritize customer relationships over profit in recent years has led to the popularization of the word “outsourcing” on the Internet. However, outsourcing has existed for many years but gathered pace when the Philippines became the hub for outsourcing services.

The year is 1992, and the Accenture Global Resource Center is launched by a visionary entrepreneur, Frank Holz. This single contact center becomes the first of its kind in the Philippines, and the genesis of outsourcing services happens.

Fast forward to 1995, the Philippine Congress passed the Special Economic Zone Act establishing the Philippine Economic Zone Authority (PEZA). The founding of PEZA gave tax incentives to foreign investors, most of whom flocked to the country and established several business process outsourcing companies.

To date, business process outsourcing companies in the Philippines hire more than 1.3 million people and contribute at least 9% to the country’s total GDP. This significant contribution is made possible by a vast clientele of American, New Zealand, Australian, British and Canadian companies that trust BPO companies in the Philippines to handle various business processes on their behalf.

A high literacy rate of 96% (ranking among the highest in the world) has made the Philippines an asset for businesses looking to outsource their processes. With educated Filipinos boasting multilingualism as one of their skills, it makes partnering with businesses that serve an English-speaking customer base viable.

Filipinos are also famed for their hard work and flexibility, allowing them to adapt to working according to clients’ time zones.

Current Outlook And The Future Of Customer Service Outsourcing In the Philippines

The rapid development of AI and automated CRM tools have changed and will continue to influence how businesses relate with their customers. To keep up with this, customer service outsourcing companies in the Philippines are deploying AI tools to help them become more efficient and help their clients offer an exemplary experience to their customers.

Data analytics has become a central part of customer service improvement by many BPOs in the Philippines. Regular tracking and reporting on crucial metrics help clients know what their customers feel about their operations and provide insights on optimizing their operations.

At Loop Contact Solutions, we are utilizing a plethora of data tools to track the efficiency of our customer service agents. Doing this allows us to continuously improve your customers’ experience when interacting with our personnel. This initiative allows us to prepare your business for the future and help it compete effectively in a rapidly changing economic landscape.

What Makes Outsourcing Customer Service in the Philippines Different?

At the heart of each business’s goals is creating value and delivering it effectively to its target customers. Customer service ensures this value creation and delivery process works seamlessly and helps retain your customers. Customer retention is cheaper and more effective than acquiring new ones hence the need to partner with a BPO that guarantees exemplary customer service.

This section explores what makes outsourcing customer service in the Philippines different and better than in any other country.

a) Tax Incentives

The establishment of the Philippine Economic Zone Authority saw the government relax most of the previously existing tax barriers that made it impossible or too expensive for foreign investors to pitch camp in the country.

With financing flowing into the Philippines, many customer service outsourcing companies were set up at a fraction of what it would cost to set up in other countries. To date, this is still the case and is the reason why outsourcing business processes to the Philippines is more cost-effective than in America, Europe or down south in Australia.

b) Excellent Internet Connection

The Philippines ranks among the top 100 countries globally with the most reliable internet connection. When you outsource your customer support needs to the Philippines, you get the benefit of a team that will always be available to address your customers’ needs.

Excellent internet connectivity is also the reason behind the Philippines leading in BPO provision worldwide, as it allows the workers in the industry to research newer and more effective ways to serve businesses and their customers once assigned to them.

c) High Literacy Levels

The literacy levels in the Philippines are among the highest in the world and rank well above other countries in Asia. This highly knowledgeable population is also bi-lingual, with English-speaking proficiency at an impressive fluency level.

When you outsource your customer service tasks to a BPO in the Philippines, you are guaranteed that your customers will be dealing with a team that understands their needs and can communicate effectively with them.

The first step to excellent customer service is understanding the customer’s needs and pain points. With no language barrier, the Philippines is your best bet for transforming the customer service arm of your business.

d) Vast Experience

The Philippines has been the center of BPO providers since the early 90s when the first ever call center was set up here. This rich experience that spans over three decades is what businesses are looking for when outsourcing their customer support services.

Having been in the BPO industry for long, many Philippine countries have learned to evolve as the business landscape changes.

At the onset of the internet in the late 90s, BPO providers in the Philippines helped many companies in the US adapt their operations to leverage this new technology. The same thing happened in the 2000s and 2010s as social media became a mainstay.

Now in the 2020s, Filipino BPO providers are leading the innovation in customer service provision as AI and automation take root. Outsourcing these services to the Philippines helps position your business well for growth, ensuring that your customer gets reliable human support powered by AI and automation.

e) A Large and Dedicated Workforce

As of 2023, up to 1.3 million people are employed in the BPO industry in the Philippines. It is estimated that more than half a million new jobs are created in the BPO industry each year, meaning your business can rely on a continuous flow of highly-skilled agents to serve your customers.

Flexibility and dedication are key traits that Filipinos are known for. This self-drive is behind the success of many businesses that outsource their customer service to the Philippines. The country will continue to be a top destination for outsourcing customer service for businesses looking to scale sustainably.

Why You Need to Outsource Customer Service with Loop Contact Solutions In the Philippines

At Loop Contact Solutions, we have vast experience helping businesses enhance customer relationships and increase loyalty. We offer bespoke customer service for businesses looking to outsource in the Philippines.

Over the years, we’ve distinguished ourselves by having an extensive training program that ensures we have team members ready to serve you and your customers to their specific needs. Our employees are constantly learning and will invest themselves in understanding how your business works, so they can offer exceptional support to your customers.

We’ve invested in high-end technology that enables our team to be available for your customers whenever they need customer support. We can generate reports and analyses that will improve your decision-making through these tools.

Final Thoughts

A business is nothing without its customers. Ensuring that you routinely find ways to support them as they use your service and products is critical to keeping them happy and retaining them long-term. This need is especially important now that the threat of the economy failing is causing many businesses to lose their treasured customers.

Since the 90s, the Philippines has established itself as the go-to destination for businesses looking for reliable BPO providers to outsource their customer service needs. The impressive infrastructure, vast experience and high illiteracy levels make Filipino customer service agents a must-have for your business.

Contact us at Loop Contact Solutions today, and let us help you improve customer retention with top-of-the-shelf customer service.