What is Seat Leasing?
What is seat leasing?Seat leasing is a business arrangement where a company leases office space, specifically desks or workstations, to a seat leasing provider. This concept is common in shared office spaces or coworking environments.
In a seat leasing arrangement, the lessee (the company or individual renting the seats) gains access to fully equipped office space amenities such as:
Desks
Chairs
Internet connectivity
Reception
Administrative support
Conference room accessThis model benefits startups, freelancers, or small businesses that may not want to commit to a long-term lease or invest in setting up their own office space.
The lessor (the company providing the seat leasing service) manages the shared office space.
Lessors offer a convenient and affordable option for businesses seeking workspace without the extra expenses of a regular office setup.
BPO seat leasing has become popular in most companies due to its flexibility, cost efficiency, and the opportunity for networking and collaboration in a shared workspace.
2 common seat leasing services optionsThere are various methods of seat leasing in different countries. However, it usually involves offering customers two options:
Warm seat leasingWarm seat leasing involves renting seats or workstations with preexisting infrastructure and technology used by another tenant or user. This type of leasing is great for those who want a quick office setup without investing a lot initially.
It saves time and resources but might not offer as much customization compared to starting fresh. Also, the condition of the existing infrastructure should be considered.
Cold seat leasingCold seat leasing refers to an arrangement in which the leased seats or workstations are provided without any existing infrastructure or equipment.
In this setup, the lessee is responsible for furnishing the workspace, installing necessary equipment, and setting up the infrastructure required for their operations.
It essentially provides a blank canvas for the lessee to customize the workspace according to their specific needs and preferences.
Seat leasing in the PhilippinesIn the Philippines, seat leasing is particularly widespread in cities like Manila and Cebu, where the business process outsourcing (BPO) industry thrives.
The next level of outsourcing is staff leasing, where the BPO company is contracted to provide the staff needed by the business.
Outsource Accelerator‘s directory lists over 4000+ outsourcing companies in the Philippines. These companies are carefully selected for their innovation, expertise, and technology, which will benefit our clients.
We also guide you on the best seat leasing options you can get in the Philippines for your business.
By leveraging call center seat leasing in the Philippines, companies can gain a competitive advantage, streamline operations, and access a diverse talent pool, ultimately enhancing their overall business performance.
What are the benefits of BPO seat leasing?There are several reasons why leasing a BPO seat is advantageous and the best investment a company can make.
By leasing office space instead of purchasing it, companies can significantly reduce overhead costs and allocate resources more strategically.
This allows organizations to focus on core business activities while the outsourcing services provided through BPOs handle non-core functions such as customer support, data entry, and IT support.
Here are some numerous advantages of seat leasing:
For startups and SMEsStartups and small and medium-sized enterprises (SMEs) are allowed to access a fully equipped workspace without the need for substantial upfront investments in infrastructure.
Here are the benefits of BPO seat leasing for startups and SMEs:
Cost efficiencyBPO seat leasing is cost-efficient and beneficial to small and medium enterprises. A company’s location is a valuable resource, especially in urban areas.
With established companies willing to occupy any space to continue their business operations, rental costs are continuously rising.
Seat leasing solves this dilemma for SMEs and start-ups. The monthly payment for seat leasing services is cheaper than renting traditional office space — one that is seen as a luxury for start-ups and small businesses.
Up-to-date equipmentOutsourcing providers have specialized office desks and workstations equipped with modern hardware and software to meet customers’ needs.
Their computer networks also operate with advanced software that ensures the safety of your company’s confidential data.
Moreover, any dedicated office space, hardware, or seat leasing equipment is designed to promote productivity and ease in doing business operations within a seat leasing facility.
Location flexibilityStartups and SMEs can choose the location of their operations without the constraints of property ownership.
This flexibility enables them to establish a presence in strategic locations or areas with talent pools without a long-term lease or property ownership commitment.
Reduced administrative issuesBPO providers often offer administrative support services, such as HR assistance, IT maintenance, and facility management.
This allows startups and SMEs to focus on core competencies while relying on the expertise of the BPO partner for non-core functions.
For established organizationsIt may seem unlikely that established call center companies would need to lease office space outside of their own, but several BPO companies do.
Additional capacityEven the largest BPO companies with entire buildings can find themselves in need of additional capacity to run their business. Several companies rotate their workspaces in shifts to give all employees their own desk space.
Call centers can rent out a coworking space for their employees. Employees can bring their own devices and use the rental desk and internet connection through seat leasing.
High-ranking employees with company-issued laptops who might have to work longer hours will benefit from this arrangement.
Additional servicesAnother attractive feature of seat leasing is that it lets property owners and employers add additional services for the workers.
Features like game rooms, vibrant meeting rooms, quality furniture, and the availability of pantries all cater to an employee’s satisfaction in the workplace.
This helps promote comfort, productivity, and satisfaction for employees within a company.
Easily expand operationsBig companies can scale their operations up or down through seat leasing, depending on the market demand. This means that they do not need to find another office space, rent it, and fit it with the equipment needed for the job.
With seat leasing, companies only need to hire a seat leasing partner and immediately move the rest of their operations into the leased spaces.
Geographical expansion with minimal riskFor outsourcing companies looking to expand into new markets or regions, BPO seat leasing provides a low-risk entry strategy.
It allows them to establish a presence in different locations without the complexities of property acquisition or long-term leases.
What is a Call Center?
What is a call center?A call center may refer to a physical center where an outsourcing company conducts various customer contact services that act as a front line to customers.
Call centers comprise a team of agents who are trained for the product or service being offered.
A call center may also refer to a type of BPO setup where a client gets a remote team to handle its customer service hotlines and attend to the client's customers on its behalf.
In call centers, agents often do inbound or outbound call handling. The former talks about customer service, order processing, or technical support.
The latter focuses more on telemarketing, promotions, or selling. In this setup, it is the call center agent who initiates the call to potential customers.
Call center outsourcingA call center employs agents who act as representatives on their client's behalf to deal with questions, concerns, and complaints of the customers.
Aside from that, call centers can also function as sales hotlines and telemarketing teams. Outsource Accelerator provides you with the best call center outsourcing companies in the Philippines, where you can save up to 70% on staffing costs.
Call center vs. Contact centerCall centers and contact centers have almost the same functions and processes. However, their distinction lies in various factors, such as communication channels, skillsets, and volume of handled data.
Call centers focus on offering customer service through phone calls. While many call centers now use non-voice options such as email and chat, their priority still lies in handling incoming or outgoing calls.
Contact centers, meanwhile, provide their services in a wider range of communication channels.
They create an omnichannel approach to their functions, giving clients more flexibility in how they can reach a business. This is why a contact center is also called a "modern call center."
Types of call centersBelow are some of the types of call centers today:
Inbound call centerInbound call centers focus on handling incoming calls daily. Each customer service agent is responsible for answering inquiries and concerns about a firm's products and services.
Outbound call centerOutbound call centers handle outgoing calls to leads and customers of a business.
Agents in this call center type reach out to people for lead generation, appointment confirmation, payment reminders, and other related functions.
Automated call centerIn an automated call center, agents use call center technology to handle some or all of their responsibilities.
Some of their functions include appointment setting, sending shipping updates, and automated transaction confirmation.
Virtual call centerLastly, virtual call centers handle inbound and outbound calls through the cloud. Compared to a traditional call center, virtual call centers don't need a physical space and in-house agents to accomplish their work.
What is Fully Managed Outsourcing?
What is fully managed outsourcing?Fully Managed Outsourcing is one of the many services offered online by various outsourcing companies. It is a kind of laser-focused management that takes over the business process and tracking of the organization’s KPI metrics, training and development of employees, and quality assurance for the client.
When routine tasks and jobs are outsourced, the company will have more time to focus on the more essential aspects of the business.
Fully managed serviceWorking with a fully managed outsourcing can be beneficial to any specific organization. Despite working offshore, Business Process Outsourcing (BPO) companies can still provide a fully managed service to their clients.
They ensure the best operational structure, competitive pricing structure, proven processes, and guaranteed results with their operational overseers.
They can build a team and hierarchy; they do well-prepared implementation and alignment; and are also aligned to their high-quality mission, objectives, and culture.
This kind of partnership promises a deliverable-based solution that can hit KPIs, targets, and metrics. Lastly, they can ensure continuous improvement as you go along with your business.
Outsource Accelerator provides you access to the best outsourcing companies in the Philippines, where you can save up to 70% on staffing cost. We have over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with fully managed outsourcing.
What is What is business process outsourcing??
What is business process outsourcing (BPO)?Business process outsourcing (BPO) is the practice of contracting a third-party provider to run a defined business function such as customer support, payroll, accounting, or IT helpdesk. The provider takes ownership of the people, process, and technology, and bills you on a per-seat, per-transaction, or fixed-fee basis.
BPO sits at the intersection of labour arbitrage and operational focus. You hand off a non-core function to a specialist that can run it cheaper, faster, or better, and your in-house team gets to concentrate on what actually moves the business.
The category covers everything from a 4-seat phone team in Cebu answering after-hours calls for a US plumbing firm, to a 5,000-seat captive in Manila handling global claims processing for a Fortune 500 insurer. Same idea, very different scale.
If you've used Apple support, ordered from Amazon, or paid with Wells Fargo, you've talked to a BPO provider — you just didn't know it.
How it worksA BPO engagement runs in three layers: contract, transition, and steady state. You scope the function, sign a service level agreement that locks in response times, quality thresholds, and pricing, then transition the work through documented playbooks and parallel runs before the provider takes the keys.
Pricing usually falls into one of four shapes:
Model
How you pay
Best for Per FTE (seat)
Fixed monthly rate per agent
Steady-volume work like inbound support Per transaction
Set fee per call, ticket, or invoice
Variable-volume back-office tasks Outcome-based
Tied to a KPI like CSAT or collections
Mature processes with clean metrics Hybrid
Base FTE rate plus variable bonus
Long-term partnershipsLocation choice drives most of the savings. Sending work to the Philippines or India (offshoring) typically cuts loaded labour cost by 50–70% versus a US in-house team. Sending it to Mexico or Colombia (nearshoring) trims 30–50% while keeping you in roughly the same timezone. Keeping it domestic (onshoring) protects timezone and language fit but barely moves the cost needle.
The provider absorbs the recruiting, training, real estate, tech stack, and compliance burden. You absorb the vendor-management overhead and the risk that comes with handing a function to an outsider.
ExamplesThe global BPO market hit roughly USD 347.95 billion in 2025 and is projected to grow at a 10.05% CAGR through 2035, according to Precedence Research. That growth is concentrated in a handful of hubs and a handful of named buyers.
Google has used Philippine and Indian BPO partners since 2016 for content moderation, ads review, and customer support — a quiet workforce that scales with each product launch. Meta contracts Accenture and TaskUs in Manila for content moderation; the work pulled enough scrutiny in the early 2020s that Meta eventually broadened its provider base across multiple regions. Wells Fargo has operated a Manila back-office hub since 2011, handling mortgage processing, AML checks, and treasury operations for the US parent. JPMorgan Chase runs large captive and outsourced operations in India and the Philippines for KYC, trade settlement, and analytics.The Philippines remains the standout English-language hub. According to the IT and Business Process Association of the Philippines, the country's IT-BPM sector generates roughly USD 40 billion in revenue and employs about 1.9 million people, with growth targets pushing past 2.5 million by 2028.
Related terms Outsourcing: the umbrella term; BPO is the back-office and front-office slice that runs whole processes rather than one-off projects. Offshoring: moving work to a distant country (e.g. US to Philippines). A location choice, not a contracting choice. Nearshoring: moving work to a nearby country (e.g. US to Mexico) to keep timezone and culture closer. Knowledge process outsourcing: KPO handles judgment-heavy work like legal research or equity analysis, not transactional tasks. Call center: one delivery format inside BPO, focused on inbound or outbound voice. Back office: the non-customer-facing operations layer that BPO most commonly absorbs. Service level agreement: the contract clause that defines what "good" looks like in a BPO deal. FAQ What is business process outsourcing in simple terms?BPO is paying another company to run a piece of your business for you, usually a repeatable function like answering support calls, processing invoices, or managing payroll. You keep the brand and the strategy; they run the operation.
What is the difference between BPO and outsourcing?Outsourcing is the broad category — anything you contract out, including one-off projects. BPO is the subset where a provider runs an ongoing, defined business process end-to-end, typically with its own staff, systems, and SLAs.
Is BPO only about cost savings?No. Cost is the entry argument, but mature buyers cite access to specialist talent, 24/7 coverage, faster scaling, and freeing in-house leaders to focus on growth as bigger long-term wins. See the directory of vetted providers on Clutch for how the market positions itself today.
What functions do companies outsource most often?Customer support, IT helpdesk, finance and accounting, payroll, HR administration, content moderation, and data entry top the list. Higher-judgment work like legal research, equity analysis, and medical coding has shifted to KPO providers over the last decade.
Which countries dominate the BPO industry?The Philippines leads voice and customer experience, India leads IT and analytics, and Latin America (Mexico, Colombia, Costa Rica) leads nearshore work for North American buyers. Eastern Europe serves Western European clients on similar terms.
How do I choose a BPO provider?Match scale to your volume, check for relevant compliance (ISO 27001, HIPAA, PCI DSS, SOC 2), ask for two reference clients in your industry, and pilot a small scope before committing to a multi-year contract. Walk away from any provider that won't share agent attrition data.
Ready to scope a BPO partner? Outsource Accelerator lists 4,000+ vetted providers across the top global hubs — use the directory to shortlist, compare pricing, and book intro calls without paying a referral fee.
Independent
