Listen Up, Start-Ups! Back Office Outsourcing To Call Center Philippines Is the Support You Need in the Era of Wage Hikes and Inflations

Published: February 27, 2024
A woman holds a mega phone. Image caption reads: Listen Up, Start-Ups! Back Office Outsourcing To Call Center Philippines Is the Support You Need in the Era of Wage Hikes and Inflation

Building a business from the ground up is no walk in the park. You need grit, out-of-the-box thinking, and the right call center partner.  The odds may be stacked against you, but you have a secret weapon: Back Office Outsourcing to Call Center Philippines.

An infographic shows challenges for start-ups in 2024 and simple formula showing how Back Office Outsourcing to Call Center Philippines can save them cost.

6 Challenges for Start-Ups in 2024 

Every startup comes with its fair share of growing pains, whether it’s securing funding, hiring the right talent, or effectively marketing its product or service. 

Over a year, 20% of companies will fail. In the next year, that number will rise to 30%, and after yet another year, half will fail. 

The failure rate will balloon to 70% by the decade’s end. What does it take to be part of that successful 30%? Knowing your enemies and identifying strategies to overcome them.

Inflation that just won’t go away.

While there was a steady cooling of inflation in 2023, it rears its ugly head again in January 2024, surpassing expectations due to elevated shelter prices. The Consumer Price Index (CPI) rose by 0.3% for the month, totaling 3.1% over the past year.

Rising prices increase operational costs, impacting profit margins and cash flow. Startups may face higher materials, equipment, and labor expenses, making managing budgets and achieving profitability more difficult. 

Inflation can also lead to increased competition for startups, as larger companies may be better positioned to absorb cost increases or outbid startups for essential supplies or talent.

Landlords are business people, too. They’ll hike commercial rentals.

Real estate and commercial leases will also drive up costs for start-ups. 

As inflationary pressures and rising operating costs impact property ownership, landlords must adjust rental prices to cover property taxes, maintenance, insurance, and mortgage payments. In January, U.S. renters already witnessed a significant 1.1% increase in the median asking rent, reaching $1,964, marking the sharpest year-over-year rise since March 2023.  

For startups, especially those in their early stages, rental costs comprise a substantial part of their operational expenses. When rental rates hike, it directly impacts their bottom lines, reducing their capital for crucial expenditures such as hiring, marketing, and product development.

“Money can’t buy happiness” is only true for Bill Gates.

Startups often pride themselves on their progressive values and work environments, but these alone are no longer enough to compete with larger enterprises in the job market. Despite the allure of their work culture, when it comes down to it, compensation dictates who wins the talent war. 

In many cases, higher salaries overshadow the appeal of startup culture, particularly for people who prioritize financial stability and security. As a result, startups find themselves at the losing end if they can’t offer competitive salaries that align with industry standards.

Workers across the U.S. expect hikes, with half of the states planning to raise their minimum wages. Notably, California, New York, and Washington will see baseline pay rise to at least $16 per hour, with 22 states implementing the new rates on January 1. 

Attracting and retaining talent: People want to work from home. But they also crave connections. But not too much ‘though, because they also value working independently. 

Today’s workforce has conflicting preferences and priorities regarding their work environment. While many employees appreciate remote work’s flexibility and autonomy, they also want a sense of connection and community from being part of a physical workplace. 

On one hand, employees value the freedom and convenience of remote work, with 71% of employees saying it helps them maintain a healthier work-life balance. But while they seek autonomy and independence, prolonged isolation also negatively impacts their productivity, which is why 68% prefer hybrid work arrangements.

Bottomline: A fully remote set-up is no longer ideal for today’s complex workforce. 

As startups strive to create a work environment that meets the diverse needs of their workforce, they need to adopt a more nuanced approach to remote work policies and employee engagement — which, more often than not, means more expenses on your part.

AI won’t replace people. It’s just a new tool. But it’s a new investment as well.

While artificial intelligence (AI) holds the potential to revolutionize various aspects of business operations, from automation to customer experience, one of the biggest barriers to its adoption is money.

Acquiring the technology often involves significant upfront costs, especially for startups with limited resources. Whether purchasing AI software, investing in hardware infrastructure, or hiring specialized talent to develop custom AI solutions, the initial investment can be daunting.

Moreover, ongoing expenses, such as maintenance, updates, and training, can further strain your budget. As AI technologies evolve rapidly, staying up-to-date with the latest advancements and ensuring compatibility with existing systems can incur additional costs.

The risk of ROI uncertainty is also something that needs to be considered. While AI has the potential to streamline operations, improve productivity, and drive revenue growth, the return on investment is neither immediate nor guaranteed. Startups must carefully weigh the potential benefits against the associated costs and risks to determine if the investment is worth it.

Customer acquisition and retention: “Yes sir, I’m a customer service agent. Of course, I’m good at apologizing for things that aren’t my fault.”

Customer expectations evolve with cultural and technological advancements, and your customer service strategy has to keep pace as a business. Here’s the lowdown on what your customers expect from you.


One notable trend is the increasing demand for personalized experiences across all customer journey touchpoints. In today’s digital age, customers expect brands to anticipate their needs, understand their preferences, and deliver tailored solutions that resonate with their interests.


Convenience and accessibility have also emerged as key drivers influencing customer behavior. 

With the proliferation of mobile devices and on-demand services, customers seek seamless experiences that allow them to interact with brands anytime, anywhere.

This trend is particularly evident in the rise of omnichannel shopping, where customers expect consistency and continuity across online and offline channels.

Data Privacy

Trust and transparency are huge differentiators in the 21st century. With a staggering 6.41 million data breaches in the first quarter of 2023 alone, customers are increasingly cautious about sharing personal information and expect brands to prioritize transparency in their data practices. 

Companies that demonstrate integrity, authenticity, and accountability are more likely to earn customer trust and loyalty in an increasingly competitive marketplace.

Corporate Social Responsibility

In this “woke” era, social responsibility and ethical considerations also play a part in customer decision-making. 

As much as 77% of consumers are driven to support brands committed to a cause. As a result, companies that prioritize sustainability, diversity, and community engagement can better appeal to today’s socially conscious consumers.

The Bottomline: 2024 Sees Funding Constraints and Lukewarm Investors for Start-Ups

While secure funding is one of the biggest success drivers for startups, 2024 is shaping up to be a challenging terrain marked by funding constraints and lukewarm investor sentiments. 

Economic Impact

As interest rates rise in response to economic tides, venture capitalist investment drops, creating a challenging environment for startups in desperate need of financial backing. Major tech vendors’ have also raised prices, making it increasingly difficult for those seeking to scale up. 

Driven by the ripple effect of price hikes, startups must allocate more funds towards existing line items, draining their resources for innovation and growth initiatives. Increasingly more are shifting from growth to survival mode and trimming costs wherever possible.

Unfortunately, this means difficult decisions such as laying off employees, further exacerbating the challenges inherent in their already lean workforce.

Investor Challenges

Investors themselves grapple with hurdles in raising new funds. The steep decline (26% drop) of funding rounds in the U.S., which plummeted from 8,147 in 2022 to an estimated 6,050 in 2023, paints a dire picture of the situation. 

Investors channel their funds towards more mature companies and growth-stage startups in a shift towards minimizing risk. This creates more problems for nascent startups that need early-stage capital to propel their ventures forward.

Back Office Outsourcing to Call Center Philippines for Start-ups’ Operational Efficiency, Strategic Scaling, Growth, and Innovation

In an era marked by wage hikes and inflation, startups face unprecedented challenges in optimizing their operations, scaling strategically, and driving growth while maintaining cost efficiency. Fortunately, Business Process Outsourcing (BPO) in the Philippines provides startups with a cost-effective solution amid financial uncertainties and investor hesitancy. 

The lower labor costs in the Philippines compared to many Western countries enable startups to achieve significant savings on back office operations expenses, allowing them to allocate scarce resources more efficiently and weather economic downturns more effectively.

However, some businesses are still skeptical of the financial benefits of back office support services. As such, let’s calculate cost savings to help drive informed decision-making and performance evaluation. The formula to compute savings for back office outsourcing varies depending on the context and factors involved. A basic formula could be:

Breaking Down the Numbers

Back Office Outsourcing Savings = Cost of In-house Operations − Cost of Outsourced Operations

This is a quick breakdown of what you need to know:

  • Cost of In-house Operations: This includes all the expenses of running the back office functions internally. It can encompass employee salaries and benefits, office space rental, equipment and technology costs, utilities, training expenses, management overhead, etc.
  • Cost of Outsourced Operations: This includes the outsourcing provider’s fees for performing the same functions. It may involve a contract fee, service-level agreement (SLA) costs, and any additional expenses related to outsourcing, such as setup fees or transition costs.

To get deeper insights and calculate the percentage savings achieved through outsourcing the back office functions, you can use the following formula for the cost of savings rate:

Percentage Savings = [Back Office Outsourcing Savings/Cost of In-House Operation] x 100

Streamlining Startup Success: Unlocking Efficiency with Back Office Solutions

Operational Efficiency

Investing in back office services such as accounting and bookkeeping helps startups streamline their financial processes, mitigate risks, and focus on achieving their strategic objectives. Through outsourcing certain functions, startups can optimize their operations and pave the way for long-term success in today’s competitive business landscape.

Accounting & Bookkeeping: Any business’s heart lies in its financial health. Effective accounting and bookkeeping practices ensure that startups maintain accurate records of their financial transactions, monitor cash flow, and comply with regulatory requirements. Outsourcing these tasks to professionals empowers startups to focus on core business activities while ensuring accurate and up-to-date financial records.

Accounts Receivable/Payable: Managing accounts receivable and accounts payable efficiently is crucial for maintaining healthy cash flow. Timely invoicing, collections, and prompt payment of bills and invoices also contribute to financial stability and vendor relationships. Outsourcing these processes can streamline operations and reduce the risk of errors or delays.

Controller: A controller plays a pivotal role in overseeing the financial operations of a startup. They are responsible for financial reporting, budgeting, forecasting, and ensuring compliance with accounting standards. Controllers help startups make informed decisions and navigate financial challenges effectively by providing strategic financial insights and analysis.

Payroll: Payroll processing involves accurately calculating employee salaries, deductions, and taxes and disbursing payments on time. Efficient payroll management ensures employee satisfaction and helps startups comply with labor laws and regulations. Outsourcing payroll services can save time and resources while minimizing the risk of errors.

Bookkeeper: Bookkeepers record financial transactions, maintain general ledgers, and reconcile accounts. Their meticulous attention to detail ensures that financial records are accurate and organized, providing a solid foundation for financial decision-making and reporting.

Auditor: Auditors play a critical role in evaluating the accuracy and integrity of financial statements. Conducting regular audits helps startups identify areas for improvement, detect potential fraud or errors, and ensure compliance with accounting standards and regulations.

Forensic Accountant: In cases of suspected fraud or financial misconduct, forensic accountants use their investigative skills to uncover evidence, analyze financial records, and provide expert testimony. Their expertise is invaluable in safeguarding the financial integrity of startups and resolving complex financial disputes.

Strategic Scaling

Embracing virtual solutions with back office service is the key to scale with agility, adaptability, and cost-effectiveness, positioning them for long-term success in today’s competitive business landscape.

Virtual Assistants: Virtual assistants (VAs) provide administrative and clerical support remotely, allowing startups to access a wide range of skills without the overhead costs of hiring full-time employees. VAs can handle tasks such as email management, scheduling, data entry, and research, freeing up valuable time for entrepreneurs and key stakeholders to focus on core business activities.

Recruitment Process Outsourcing (RPO): Scaling a startup often requires rapid team expansion. Recruitment process outsourcing (RPO) enables startups to outsource all or part of their hiring processes to specialized firms. RPO providers can handle candidate sourcing, screening, and onboarding tasks, helping startups attract top talent more efficiently and cost-effectively.

Customer Service (Omnichannel Support): Providing exceptional customer service is essential for building brand loyalty and customer satisfaction. Outsourcing voice and non-voice customer service to a contact center allows startups to offer omnichannel support through email, chat, and social media. 

Multilingual Support: As startups expand into new markets, offering multilingual support becomes increasingly important. Virtual teams proficient in multiple languages can help startups communicate effectively with customers and prospects worldwide, breaking down language barriers and enhancing the overall customer experience.

Tech and Help Desk Support: Providing technical support and help desk services is crucial for startups offering products or services with a digital component. Virtual teams specializing in tech support can troubleshoot issues, provide product guidance, and resolve customer inquiries promptly, ensuring minimal downtime and maximizing customer satisfaction.

Innovation and Growth

Innovation and growth are the lifeblood of startups, driving them towards success in today’s competitive landscape. To stay ahead, startups must harness cutting-edge technologies like Artificial Intelligence (AI) and Machine Learning (ML) and effectively utilize data-driven insights. 

Artificial Intelligence and Machine Learning Development Support Team:

This team comprises AI and ML development specialists responsible for designing, implementing, and optimizing AI-powered solutions. They work on projects ranging from predictive analytics to natural language processing (NLP) and computer vision, leveraging advanced algorithms to extract valuable insights from data.

Data Labeling and Annotation:

Data entry, labeling annotation, and data management specialists are crucial in preparing datasets for AI and ML training. They meticulously annotate and label data to ensure accuracy and relevance, enabling machine learning models to learn effectively from the provided examples.

Prompt Engineering:

Prompt engineers focus on creating efficient algorithms and models that drive conversational AI systems, chatbots, and virtual assistants. Their expertise lies in designing natural language understanding (NLU) and generation (NLG) models that can comprehend and generate human-like responses.

Python Development:

Python developers are essential for building the software infrastructure and applications that support AI and ML initiatives. They specialize in writing clean, efficient code and integrating various libraries and frameworks to create robust and scalable solutions.

Machine Learning Engineer:

Machine learning engineers bridge the gap between data science and software engineering, building and deploying machine learning models into production environments. They are responsible for implementing algorithms, optimizing performance, and ensuring scalability and reliability.

Artificial Intelligence Architect:

AI architects design high-level AI systems and strategies, outlining the technical requirements and guiding the implementation process. They possess a deep understanding of AI technologies and frameworks, enabling them to architect solutions that align with business objectives.

Data Scientists and Analysts:

Data scientists and analysts specialize in extracting actionable insights from complex datasets, leveraging statistical analysis and machine learning techniques. They are vital in informing strategic decisions and driving business growth through data-driven strategies.

Software Programming and Development:

Software developers are responsible for building and maintaining the software infrastructure that supports data analytics, BI, and AI/ML applications. They collaborate closely with data scientists and engineers to integrate data pipelines, develop APIs, and create user-friendly interfaces.

Startups can drive innovation and fuel growth by assembling high-performance teams specializing in AI/ML development, data analytics, and software engineering. By leveraging the expertise of these professionals, startups can unlock the full potential of advanced technologies, gain valuable insights from data, and create impactful solutions that propel them toward success.

Back Office Outsourcing to Call Center Philippines: The Answer to Rising Wages and Inflation

With SuperStaff, startups gain access to a talented pool of professionals proficient in various back-office tasks, allowing them to streamline operations, drive operational excellence, and focus on core competencies. 

SuperStaff’s commitment to quality and continuous improvement ensures that startups receive exceptional support, enabling them to navigate economic challenges, scale operations seamlessly, and achieve sustainable growth in today’s competitive business environment.


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