How To Successfully Outsource to the Philippines
Avoid These Three Pitfalls To Succeed
The Philippines has emerged as a dominant force in the outsourcing arena, but a startling revelation shows that 58% of outsourced programs fail to meet their financial and Customer Experience (CX) objectives. What lies behind this concerning statistic? A deep examination drawing on our experiences with clients uncovers a myriad of contributing factors and there is actually a recurring pattern.
"58% of outsourced programs fail to meet their financial and Customer Experience (CX) objectives"
For a business to have the best chance of their outsourcing not being counted among future failures, here are the top three mistakes which must be avoided:
#1 Overwhelmed by too many options
There are multitude of options to choose from when outsourcing to the Philippines and BPO firms, such as call centres, adopt a generalised approach. Additionally, there is an unfortunate misconception when outsourcing that all vendors are of equal calibre.
Especially for newcomers outsourcing to the Philippines, this often leads to hasty decisions. Comprehensive vendor evaluations are frequently neglected and firms struggle to distinguish genuine expertise from posturing. Versatile ‘jack of all trades’ organisations with a lack of domain expertise are taken on and this results in suboptimal outcomes.
#2 Having no strategy or understanding
One significant obstacle to successful outsourcing is the disconnect between client expectations and the actual delivery by vendors. In the absence of a robust strategy and profound understanding of a vendor’s capabilities, businesses often find themselves surprised by unsatisfactory results at the end of a contracted period.
Without clear goals and benchmarks, even well-intentioned partnerships can wander aimlessly. A lack of strategic vision complicates the measurement of success and leaves companies directionless.
Without clear goals and benchmarks, even well-intentioned partnerships can wander aimlessly. A lack of strategic vision complicates the measurement of success and leaves companies directionless.
"A lack of strategic vision complicates the measurement of success."
#3 Focusing too hard on savings
The allure of cost savings can also be misleading, especially for companies new to outsourcing. The temptation to opt for the absolute cheapest offer is strong. However, there is a direct link between cost and quality – understanding this balance is crucial. Choosing the cheapest option rarely equates to the best value and often increases the risk of failure.
For businesses resetting or embarking for the first time on their outsourcing journey, this advice is critical. For businesses looking to move at speed without prior understanding of a region, a knowledgeable partner can be vital in helping identify potential pitfalls and creating a roadmap toward success. By tapping into pre-established expertise of industry veterans, companies can smoothly navigate the complexities of outsourcing to the Philippines and set up their initiatives straight away for efficiency, success and exceptional customer experiences.
Statistics source: Cynergy BPO – Why 58% of all outsourced programs fail (Business Mirror)
