Outsourcing services to other countries has grown in popularity in recent years, particularly in the Philippines. According to BruntWork CEO Winston Ong, one of the services popularly outsourced today are restaurant answering services.
He believes this trend has been driven by a number of reasons, citing the increasing cost of doing business in developed countries and the lower labour cost in the Philippines as one factor. He, however, clarifies that it’s not all about reducing costs, as some companies also want access to a larger pool of experienced and skilled workers.
Why the Philippines
According to studies, outsourcing restaurant answering services to the Philippines can save businesses an average of 60% on costs. While this considerable reduction in labour expenses has attracted several companies, they also found that Philippine-based answering services have a shorter turnaround time for calls. The average turnaround time in the Philippines is about 4 minutes, compared to about 8 minutes for domestic service.
“The savings from outsourcing a restaurant answering service to this developing country are significant,” says Ong. “Not only does it enable businesses to cut down on expenses, but it also allows them to free up staff to focus on other tasks.”
Is it easy to outsource workers in the Philippines?
The Philippines has long been a popular destination for outsourcing, but recent changes in the country’s labour laws and the stiffening competition from other countries are making it more difficult for companies to outsource there.
The Philippines recently increased the minimum wage, making it one of the highest in Southeast Asia. This has made it more difficult for companies to find workers willing to do low-skilled jobs for low pay.
Businesses are also concerned with the high turnover rate for outsourced employees. The latest data revealed that the attrition rate in the Philippines is estimated to be 40%, which is a higher than average attrition across all sectors. This means that more than a third of outsourced employees are likely to leave their positions.
How to evade these problems
It’s common for businesses looking to hire staff from countries like the Philippines to turn to outsourcing companies. “Outsourcing your hiring process is not only more cost-effective, but it is also more efficient,” says Ong.
He further points out that staffing companies like BruntWork have access to a larger pool of candidates and can find the right person for the job in a shorter time. In today’s competitive market, companies need to save time and money whenever possible, and outsourcing to companies like BruntWork is one way to do just that.
BruntWork is a leading provider of outsourcing services, offering a wide range of services, including restaurant answering services and customer relationship management. With over ten years of experience, the company has already developed a system to find the most fitting candidate for any role. According to Ong, the company has a high success rate in hiring, with 97% in the first stage of the interview process and 94% in the second stage. This higher-than-average success in hiring staff has attracted the attention of both startups and multinational companies. Proof of this is the company’s recorded revenue growth above 700% during the pandemic.