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The popular Canadian multinational e-commerce company, Shopify reportedly lay-off 1,000 employees or 10% of its workforce last July 2022. The following month, the company laid off 70 employees. The e-commerce platform has been outsourcing customer support operations to the Philippines.

Shopify was launched in 2006; it became popular and widely used in 2020 when the pandemic started, resulting in the closure of physical stores, thus paving the way for e-commerce businesses with online stores to flourish.

Outsourcing Customer Support

The e-commerce company started growing its employees to 5,000 in 2019. When the pandemic happened, the demand for online shopping grew, and the company had to hire more, resulting in 10,000 staff in December 2021.

The growing e-commerce industry was overlooked, and according to Shopify CEO Tobias Lutke, he overestimated the growth of e-commerce. He has apologized for his miscalculations that led to the dismissal of thousands of employees.

Outsourcing Customer Support

After the layoffs, Shopify has increased the salary of its remaining employees and has now decided to outsource its customer support operations in the Philippines.

According to Business Insider, Shopify has been outsourcing its customer support to TaskUs, a business process outsourcing company in the Philippines.

What might be the reason for Shopify to outsource Customer Support in the Philippines?

As of 2022, the Philippines has 700 Business Process Outsourcing companies existing. The country has over 1 million customer supports that work in providing service through calls, chats, and emails. The large number of Filipinos working in the BPO industry made the country the world’s call center capital.

Outsourcing customer support

Here are the following reasons for Shopify’s outsourcing customer support decision in the Philippines:

1. Philippine BPO Companies offer cost-efficient solutions.

Philippine BPO companies offer affordable outsourcing services compared to other countries. Other than that, the business company would not have to worry about the office space and technologies like computers that are needed because BPOs in the Philippines have it already. The only expenses that business owners have to worry about are paying for the services that customer support will provide them.

2. Filipinos’ proficiency in the English language.

American colonization in the Philippines has contributed to how the Philippines is regarded as one of the largest English-speaking countries in the world. The country’s education curriculum mostly uses the English language as the medium of instruction. With Filipinos’ proficiency in English, outsourcing customer support in the country will not make you worry about language barriers that might occur with your customers.

3. Its Flexibility in working hours.

Customer service in the Philippines works 24/7. The BPO company where you will outsource will adjust to the time you prefer for operations. They know no time differences; it does not have only morning shifts but graveyard shifts, too. This will make your company available to your customers at any given time, thus increasing customer satisfaction.

4. Access to a pool of better talents.

BPO companies in the Philippines do not just hire customer support without a basis. They hire based on educational level and give extensive training before putting their staff into live operations. By outsourcing, you would not have a problem looking for qualified customer support, as BPO companies have done this for you.

5. The Philippine Government supports BPO Industry.

The BPO Industry has largely contributed to the Philippines’ Growth in Domestic Product (GDP). In 2019, the industry accounted for a 7.3% contribution to the country’s GDP.  Over the years, it has helped lessen the unemployment rate and provided food in the homes of Filipino families. For this reason, the Philippine government has been very supportive of the industry, and lawmakers have implemented laws to support and protect the workers in the BPO industry.

These particular reasons might be the factors that encourage Shopify into outsourcing customer support in the Philippines. Given that they might be experiencing a drop in income, outsourcing is the best solution to help them with the expenses while maintaining giving service to their customers.

Prime Outsourcing Customer Support

You might now understand why Shopify chooses to outsource its customer support. With the proven advantages that it will provide your company, Philippine BPO companies are the best choice. It will help you cut your operations expenses without sacrificing quality services.

Prime Outsourcing is an offshore staff leasing company that has been competent in providing outsourced customer support services for different business companies for 17 years now. They provide business companies with highly skilled staff that gives satisfactory customer services. If you have financial problems and need staff to work for your company, the best choice is to outsource now!

By: Veronica Louis Gannaban | November 11, 2022 | Blog, Call Center, Customer Service | 0 Comments

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About the Author: Veronica Louis Gannaban