Call Center Outsourcing Philippines: 3 Red Flags

Over the last twenty years, the Philippines has emerged as the world’s largest and leading call center outsourcing destination. Today, there are more than 800 outsourcing providers operating in the country. Read more: Call Center Outsourcing Philippines: 3 Red Flags

Call Center Outsourcing Philippines: 3 Red Flags

Over the last twenty years, the Philippines has emerged as the world’s largest and leading call center outsourcing destination. Today, there are more than 800 outsourcing providers operating in the country.

It is important to know and understand, however, that not all call centers in the Philippines are set up to provide high-quality services. Let’s take a look at ways to identify call centers that might not be the best partners for your business.

A call center with 100+ clients? Run!

There’s no shortage of call centers in the Philippines claiming to have more than a hundred clients. Some even proudly mention numbers like this on their website. Trust us, dealing with a small- to mid-sized contact center that has more than a hundred client programs to manage is a nightmare. Seriously, who would want to be client #137 of any call center in the Philippines? What kind of program management could you possibly expect from a company trying to serve more than 100 accounts at the same time? The world’s largest and leading third-party outsourcing providers typically  have fewer than sixty accounts—and that’s globally. So, any call center in the Philippines that brags about having more than one hundred clients should be avoided like the plague. Look for a company with a limited number of clients, ideally fewer than forty. This will allow them to focus on your particular outsourcing needs and do a good job at it. You want to be more than just a number on the production floor.

Let’s assume you are an SME with an outsourcing requirement of between five and twenty seats or agents. In that case, a call center that operates more than 1,000 seats would not be good fit for you. Finding a right-sized vendor is of mission-critical importance for the success for your program. A call center that operates more than 1,000 seats or employs more than 1,000 agents would be way too large for your outsourcing requirements. You’d be much better off partnering with a smaller contact center in the Philippines that operates between 100 and 300 seats and employs fewer than 500 agents. Ideally, your program should be between 3 and 10% of the call center’s total seat capacity. Only then will your program be considered an important account. Keep that in mind!

You get what you pay for. 

You also want to stay clear of low-cost call centers that offer their services in the £4-6/hour range or advertise 70% cost savings. You don’t have to be a rocket scientist to figure out that these companies compete on price, not quality. Successful call center outsourcing to the Philippines requires a healthy dose of common sense. If you booked yourself a two-star hotel room, you’d very likely not expect Ritz Carlton levels of accommodation and service. The same logic applies to call center outsourcing to the Philippines. You get what you pay for. Let’s see what comprises that bottom line.

In the Philippines, a highly skilled agent with impeccable English and three to five years of work experience can easily earn £480–640 a month with a globally leading outsourcing provider or  captive operator. This equates to an hourly agent salary of £3–4.

A call center that charges £4–6 per hour or offers 70% cost savings over services in the UK simply cannot afford to hire the top-performing and English-proficient agents who make programs work and achieve high customer satisfaction levels. There are, of course, still other operating costs that need to be covered by the hourly service rate. These include the vendor margin of 30%, cost of management (operations manager, program manager, team leader, trainer, workforce manager), support staff (HR, finance and accounting, IT, admin, legal), facilities, infrastructure, technologies, utilities, and security. After covering the overhead costs, it becomes clear that the low-cost contact center or BPO can’t afford to pay agents more than £1.5-2 per hour, which is half the rate that others at the country’s leading outsourcing provider or captive operators are earning. It is also important to understand that these relatively high-paying industry giants generate 70% of all employment in the Philippine BPO industry. So, why would anyone want to work for less than they could be making? You guessed it—they do so only when they haven’t the skills to do better. Red flags don’t get any bigger than this. If you go shopping at the bottom of the barrel, don’t expect any miracles.

Beware jacks of all trades and masters of none.

Most of the low-cost call centers in the Philippines offer as many services as possible. Simply check out their websites and click on the “Services” section. If you see more than eight services, you know what type of vendor you are dealing with. They seem to be domain experts across all industries. If you talk to them, you will quickly find out they there is nothing they can’t do or haven’t yet done. That is another enormous red flag. Avoid these jacks of all trades, masters of none at all costs.

In contrast, premium contact centers in the Philippines typically specialise in a limited number of services and industries. There is no shortage of call centers specialising in, for example, financial services, eCommerce, logistics, or healthcare. The key to success is finding and partnering with one of these highly specialized outsourcing providers. But be warned, they don’t offer their services in the £4–6 range or at 70% cost savings. These premium contact centers and BPOs don’t compete on price but on people, processes, and technologies. In short, they compete on quality, not price.

If you needed a bypass, you’d look for a cardiologist who specialises in open-heart surgeries and has an excellent reputation and track record. You would probably not let a general practitioner to do the procedure, right? It’s the same with call centers in the Philippines. You want to find and partner with the experts in your industry, which will significantly increase the chances of a successful, long-term outsourcing partnership. If you go offshore, go premium. An hourly rate of £8–11 will still generate at least 50% cost savings compared to onshore vendors. Going for an extra 20% savings is not worth the squeeze. Always remember that there’s a cost to providing and/or obtaining high-quality services. Offshore call center outsourcing to the Philippines works, and it can deliver exceptional quality, but take the right approach and heed the red flags.

Ralf Ellspermann is the CEO of PITON-Global, a leading mid-sized contact center and back office outsourcing provider in the Philippines. Ralf has over 20 years of award-winning outsourcing experience in the Philippines. He has worked on both the vendor and client sides of the business, which gives him an unmatched understanding of the Philippine contact center outsourcing industry, its vendor landscape, and service capabilities. An internationally recognised expert on business process and call center outsourcing to the Philippines, Ralf has been a keynote and expert panel speaker at some of Asia’s largest and leading outsourcing conferences and summits.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Call Center Outsourcing Philippines: 3 Red Flags

Source : Business Matters More   

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How Long Does It Take to Improve Credit Score?

Your credit score is checked by lenders, landlords, insurers, and even recruiters. It affects many years of life, so a poor total has far-reaching implications. Read more: How Long Does It Take to Improve Credit Score?

How Long Does It Take to Improve Credit Score?

Your credit score is checked by lenders, landlords, insurers, and even recruiters. It affects many years of life, so a poor total has far-reaching implications.

If your current result is disappointing, there are ways to fix it. Do not expect to boost the score overnight, though — this takes months. Follow our guide to fix your status as soon as possible.

Unfortunately for borrowers, bureaus responsible for compiling their histories are not infallible. Reporting errors are more common than you may think — around 20% of Americans have unjustified scores due to inaccuracies ranging from misspellings to false accounts. Correction, referred to as a repair, is a lengthy process involving formal correspondence and disputes.

1.  Repairing or Rebuilding?

Begin with the critical question: “Is the score fair?” If it is not, you have a right to obtain an increase through formal disputes. By law, all three reporting agencies are obliged to store only factual and complete information. If any item turns out to be unverifiable or unsubstantiated, it must be deleted. Review top rated companies in the credit repair sector to find a trusted provider in your area.

If the calculation is correct, the drop was caused by your financial behaviour. Typical mistakes include overusing credit, missing payments, and submitting too many loan applications within a short period. To work out the fastest ways to improve credit score, learn about the factors used in the assessment.

Both FICO and VantageScore (the two most popular systems of evaluation in the US) rely on a scale from 300 to 850, and they consider a similar mix of factors. Generally, your prior payments and overall debt are the most important. This knowledge allows experts to prioritize disputable errors for repair. For example, late or missed payments determine 35% of FICO and 40% of VantageScore.

Any American may check their scores and reports online. To find the total, go to My FICO, or download an app like Credit Karma. The reports from all three nationwide bureaus are available on www.annualcreditreport.com. Until April 20, 2022, the files may be downloaded free of charge once a week.

2.  Evaluate the Length

How many points do you currently have, and what is your target? Note that getting to 850 is not necessary, as lenders do not price their products for the top category (800-850 in FICO). Once you reach 800, all the best conditions and interest rates become available automatically.

If you need to fix the score for a particular loan, consider the provider’s requirements. How soon you will meet them depends on where you stand, and what strategy you employ. Generally, the fastest results are achieved when consumers repair and rebuild their histories simultaneously.

Simple cases of repair take a couple of months. Why so long? Every dispute letter launches an internal investigation that lasts for 30 or 45 days. Afterwards, the bureau accepts your changes, rejects them or asks for additional information.

The more inaccuracies you want to dispute — the longer it will take. The providers charge you monthly, so the longer you use their services the more it costs. While every citizen may initiate disputes on their own for free, hiring an agency accelerates the process. Credit experts are adept at detecting errors and collecting sufficient evidence from the get-go, so you are likely to get quicker results.

As you can see, it is vital to monitor one’s borrowing history continuously. Collect your reports regularly to spot errors and fix them fast. Do not wait for inaccuracies to mount. Some consumers do not suspect they are victims of identity theft until they check their records. Complicated scenarios may span half a year or even longer. Take precautions, and work on your borrowing habits to enjoy a favourable score.

Typical Rebuilding Strategies

One of the fastest ways to get a score rise is Experian Boost. This free service allows you to include additional information for the assessment. Utility payments, HBO subscription and phone bills may all work to your advantage. On average, consumers gain 12 points. Naturally, this is not enough for someone in the “poor credit” category. Alternatively, you may:

Work With Balances And Limits

The less of your limits are used — the better for the total. Utilization defines 30% of your FICO status. Divide the sum of balances by the sum of limits to see where you stand. Experts recommend sticking to 10%. For example, if you have 4 credit cards giving access to $4,000 in total, you should not use more than $400 collectively.

To tilt the proportion in your favour, reduce the balances or extend the limits. The latter can be done by requesting an extension or getting a new card from another issuer.

Become an Authorized User

If you have a relative or friend with a positive borrowing history, ask to be included on their account. This will add their limit to your report, which is also favourable for the utilization ratio. However, if the account holder is irresponsible, you will only exacerbate the problem.

The Bottom Line

Credit scores do not jump overnight, so plan ahead. Repair takes 3-6 months on average, and it is not a science. If your score is spoilt by your own mistakes (e.g., missed payments), reconsider your budgeting. Knowing what factors influence the score, you can raise it more quickly.

 

Read more:
How Long Does It Take to Improve Credit Score?

Source : Business Matters More   

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