Hiring Offshore Chat Support Agents in the Philippines
Key Statistics
- Offshore chat support teams are proven to enhance customer satisfaction and operational efficiency. For instance, according to a Deloitte survey, 59% of businesses outsource to reduce costs, while 57% cite the ability to focus on core business functions.
- A survey by Zendesk found that businesses with 24/7 support experience a 23% increase in customer satisfaction. Offshore teams make this possible by leveraging time zone advantages.
Following the Trend
- Shopify successfully set up an offshore chat support team to provide 24/7 customer assistance. As a result, by leveraging offshore talent, including teams in the Philippines, Shopify ensured round-the-clock support for their global customer base.
- In April 2015, Telstra announced a 3,500-seat call center based in the Philippines, which included an initiative to move chat support offshore.
Why is the Philippines a Top Destination for Chat Support?
Three main reasons:
Cost savings
Literacy rate
Around the clock culture
96% English Literacy Rate
With a 96% English literacy rate, the Philippines stands out as a top destination for chat support. While Filipino is the official national language and Tagalog is widely spoken, a significant portion of the population, especially the youth, speaks English fluently and uses it daily.
English is so heavily embedded here that it's actually common for locals to speak "Taglish," which is a combination of Tagalog and English. As a result, it can be quite confusing for a foreigner who's visiting the Philippines for the first time.
Around-the-Clock Culture
Another key factor is that the government has heavily invested in the BPO industry, with customer support being a sizeable part of the sector.
Given the large amount that the BPO industry contributes to the GDP of the country (around 7%), therefore, there is cultural acceptance of working unusual shift times. For instance, even "night cities" have been set up specifically to cater to the overnight worker.
These are urban areas where a significant portion of the workforce operates during the night due to alignment with international time zones (primarily U.S., Europe, or Australia). These cities host a large concentration of BPO companies and support services, creating a thriving nighttime economy.
So, alongside the obvious cost savings, there's a lot of local English speaking talent, as well as availability for 24/7 live chat support coverage at any time required.
What are the Cost Savings of Setting up an Offshore Chat Support Team?
In 2024, it’s possible to hire a chat support agent in the Philippines from less than $1500 per month (higher if technical skills are required). According to Glassdoor, a typical chat support agent earns around $40,617 per year in the US - that's around $3,400 per month. So, in total, that represents a cost saving of over 55%.
How do Businesses most commonly set up offshore chat support teams?
The most common offshore chat support teams handle:
Customer Support
Resolving inquiries quickly to enhance satisfaction and build loyalty.
Pre-Sales Assistance
Guiding potential customers through their buying journey, increasing conversions.
Technical Support
Troubleshooting complex issues to improve product usability and reduce returns.
Multilingual Support
Offering help in customers’ native languages to cater to diverse markets.
Peak Demand Management
Scaling up during seasonal promotions or high-traffic periods to avoid delays.
By outsourcing these functions, companies can focus on their core activities while ensuring customer needs are met effectively.
Filipino Workers prefer Non-voice Roles
Non-voice roles can be quite an easy sell for English speaking customer support agents with many holding a preference to non-voice accounts.
This preference is mainly due to lower stress levels, a quieter work environment, and the opportunity to focus on written communication. These roles often offer better work-life balance, reduced pressure from strict metrics, and less risk of vocal strain compared to voice roles.
Additionally, non-voice positions are perceived as more technical and provide opportunities for skill development, making them an attractive option for those seeking professional growth and a less demanding day-to-day experience.
The net effect is that there's a lot of talent in the Philippines looking for roles where they aren't required to have a conversation with the customer over the phone, making it easier to attract talent.
How to find the Best talent for chat support roles
Finding the best talent for chat support roles offshore in the Philippines begins with a well-structured recruitment process tailored to the specific skills required for the job.
Define what's required
Start by clearly defining the role's responsibilities and necessary qualifications, such as exceptional written communication skills, multitasking abilities, and customer empathy.
Post job ads
Use targeted job postings on local platforms, including Indeed, JobStreet, Kalibrr, and LinkedIn, to attract a pool of qualified candidates.
Screen rigorously
During the screening process, assess candidates’ typing speed, grammar, and ability to convey clear and professional responses. We'd recommend a 70 WPM typing speed at a minimum.
Assessments
Mock chat sessions can be particularly effective in evaluating real-time problem-solving and multitasking skills. It can also give insight into how quickly an agent can reply, which will be critical for meeting SLAs and KPIs.
Familiarity with your culture
Cultural fit is also another thing to look out for. Are they familiar with Western culture, sayings, appropriateness, and manners? Are they going to gel with the cultural vibe of your organization? This is probably one of the more challenging aspects of candidate selection.
Of course, if you don't have the time or experience for all the above, you can partner with LevelUp, as we have access to pre-vetted talent and expertise in matching candidates for these roles. Oh, we also have 6 years of experience hiring exclusively for non-voice roles (it's all we did for the first 6 years of our existence!)
Have we recruited Chat Support Agents before?
Yes, in fact we recently just set up a team of 17 technical support agents for a company in the US which went incredibly well. We now have 35 team members with them in total, and their cost savings have been huge.
How is Artificial Intelligence likely to affect the chat support industry in the Philippines?
AI is likely going to transform the offshore chat support industry in the Philippines by automating routine inquiries, allowing agents to focus on complex, high-value interactions.
Entry-level positions are mostly in danger. However, new opportunities will arise for the employee. Initially, we're likely to see more and more agents working with an AI copilot to help with knowledge recall and formulating professional and error-free replies to the customer.
As we go further into the future, automated systems will be hugely transformative as more roles are replaced by AI agents doing 95% of the work and are just being monitored by fewer human employees.
The reality is that no one really knows exactly how this will pan out. Voice support, too, is in the crosshairs of AI, with artificial agents able to hold voice conversations with increasing efficiency, speed, and accuracy.
What's clear, though, is that new opportunities will emerge, and it's up to all of us to adapt.
