- By quade
- 6 October 2023
58% of Outsourcing Businesses in the Philippines Fail According to Cynergy BPO
The Philippines has emerged as a giant in the call center outsourcing industry. Services like this are a large contributor to the Philippine economy as millions of Filipinos are employed in call centers and work with clients worldwide.
Despite the industry’s role in the country, statistics show that about 58% of these outsourced businesses didn’t meet their financial or customer experience expectations.
Such a troubling statistic has caused some business leaders to take a look at the sector for underlying issues.
Issues with the Philippine Outsourcing Model
One person who discussed this was John Maczynski, CEO of Cynergy BPO. When talking about the issue, he said:
“In my nearly four decades in the global contact center industry overseeing a myriad of outsourcing projects, a consistent pattern has emerged. Particularly among newcomers, the overwhelming number of options can lead to hasty decisions, frequently neglecting comprehensive vendor evaluations.”
John Maczynski, CEO of Cynergy BPO
A trend he has observed is that most companies go for a generalized “jack of all trades”, approach to their business. This setup has them invest in different markets all at once. While this helps make a company versatile, it also means that it cannot specialize in a single business and become a dominant player, leading to less satisfying results.
One problem with this approach is that different outsourcing businesses can not meet their client’s expectations. The lack of focus and expertise in these businesses often leads to mediocre results and unsatisfied clients.
Maczynski adds that this general approach prevents many businesses from developing a clear outsourcing (CX) strategy as they have no clear pathway to focus their resources on. They do not have the usual metrics to determine progress or measure success.
“Having a robust strategy is essential. Absent clear goals and benchmarks, even well-intended collaborations can meander aimlessly.”
John Maczynski, CEO of Cynergy BPO
John is not the only one who agrees with that assessment as Cynergy’s CSO, Ralf Ellspermann also released a statement.
“The prevalent misconception in outsourcing is that all vendors are of the same caliber. Decades in the field have equipped us to distinguish genuine prowess from mere posturing.”
Ralf Ellspermann CSO of Cynergy BPO
He believes one reason for this approach is that most companies focus on cost savings rather than product delivery. They do this by having general BPO workers instead of investing more time and resources in training specialists.
“There’s a direct correlation between cost and quality. Recognizing this balance is crucial. Opting for the cheapest rarely equates to the best value and only increases the risk of failure.”
– Ralf Ellspermann CSO of Cynergy BPO
Under Maczynski and Ellspermann’s leadership, Cynergy has transformed from a simple startup to one of the Fortune 500 businesses, providing countless clients with unparalleled service. That is why the pair wished to offer insights into improving the industry.
“The intricacies of the call center industry in the Philippines are manifold. Our depth of experience enables us to navigate these nuances, ensuring our clients’ outsourcing endeavors align strategically and are set up for success.”
– Ralf Ellspermann CSO of Cynergy BPO
They believe this advice is critical for any new outsourcing business, as having this knowledge can help businesses navigate through the hazards of the industry and become successful.
For businesses starting on their outsourcing journey, this advice is pivotal. A knowledgeable partner can highlight potential pitfalls and guide them toward success. Having experts like Maczynski and Ellspermann has been a massive help for the Philippines, as it positions itself as a player in the BPO industry.
