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Home » Glossary » Seat Leasing

Seat Leasing

Definition

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 access

This 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 options

There are various methods of seat leasing in different countries. However, it usually involves offering customers two options:

Warm seat leasing

Warm seat leasing involves renting seats or workstations that come with pre-existing 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 leasing

Cold seat leasing refers to a seat leasing arrangement where 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 Philippines

In 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 700+ outsourcing companies in the Philippines. All of these are carefully selected for innovation, expertise, and technology that will benefit our clients.

We also guide you on the best seat leasing options you can get in the Philippines for your business.

Seat leasing in the Philippines
Seat leasing in the Philippines

What are the benefits of BPO seat leasing?

There are several reasons why leasing a BPO seat is not only advantageous but also the best investment that a company can make.

Here are some numerous advantages of seat leasing:

For startups and SMEs

Startups 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 efficiency

The cost-efficiency of BPO seat leasing is 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 equipment

Outsourcing providers have specialized office desks and workstations that are equipped with modern hardware and software to meet the 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 flexibility

Startups 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 issues

BPO 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.

What are the benefits of BPO seat leasing?

For established organizations

It may seem unlikely that established call center companies would need to lease office space outside of their own, but several BPO companies do.

Additional capacity

Even 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 to 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 services

Another 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 operations

Big companies can scale their operations up or down through seat leasing, depending on the market demand.

This means that they do not need to go through the hassle of finding another office space, renting it, and fitting 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 risk

For 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.

Outsourcing FAQ

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 service

Working 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 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 outsourcing

A 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 center

Call 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 centers

Below are some of the types of call centers today:

Inbound call center

Inbound 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 center

Outbound 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 center

In 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 center

Lastly, 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 an Agent?

What is an agent?

In the outsourcing industry, the definition of agents is a team of individuals who are tasked to provide customer services via different communication channels available in order to continuously provide a positive customer experience. Agents are deployed to do inbound and outbound functions; both are essential in keeping the relationship between the business and its customers healthy and productive. Processes may involve customer service support, back-office job support, advisory services, email management, virtual assistance services, website maintenance, marketing and promotional services, and the likes.

Agents are trained to render customer support that revolves around the company’s product or service. Ranging from office support to advisory services, agents are expected to provide the best possible alternative course of action for every problem and increase customer satisfaction by attending to their concerns being raised via different communication channels.

Outsourcing agents

An agent of a BPO company earns an average of USD 4,000 per year in the Philippines, which is roughly USD 345 per month. Aside from that, agents can receive more through overtime pays and holiday pays. Labor laws in the Philippines require higher pay rates during these situations. In some cases, agents can work even with just a high school diploma, but applicants with college degrees have an advantage.

What is What is business process outsourcing??

Business Process Outsourcing (BPO) is the delegation of business processes to an external service provider to a nearby or farther location. BPO uses various technology-enabled services to optimize the delivery of services.

Some of the usual outsourced business functions are the following:

Payroll Accounting Human resources Customer service Sales Marketing

In the case of content providers, these could mean hiring writers, remote editors, or virtual assistants.

BPO speeds up processes and enhances efficiency. Companies that outsource some of their business processes use their time on core services and competencies.

With this shift in focus, companies improve their current processes, which may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies.

Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. Outsourcing services can also help them save costs and resources in hiring suitable employees.

The definition of business process outsourcing (BPO)

In business process outsourcing, a company delegates its services to a service provider. It can be a local firm, nearshore, or offshore company.

Upon reaching an agreement, the service provider will then set up a team for their client. They will shoulder the costs and resources needed, including:

Office space Workplaces Connection Cloud storage IT infrastructure

The providers are responsible for tracking the staff's performance and progress. Meanwhile, the clients are responsible for providing the tasks, processes, and KPIs needed for their operation.

In some instances, they are also allowed to incorporate their culture and values into their team and absorb them as a part of their company.

What are the benefits of business process outsourcing (BPO)?

There are many benefits to outsourcing, as well as some downsides and risks.

Outsourcing powerhouses like the Philippines and India produce high-quality talent at a lower rate due to their low operational costs and full government support.

Since outsourcing companies hire and produce experts in the field, clients can ensure better results in their operations – whether in customer service, accounting, or marketing. Their staff are trained to ensure that their clients achieve the outcome they expect.

Companies are able to scale their staff depending on the demand and availability of their tasks. This also helps them improve their operations by letting their service providers contribute to streamlining their processes.

Outsourcing poses more growth opportunities for businesses of all shapes and sizes. While there are still drawbacks to this practice, it is safe to say that its advantages outweigh its risks.

To explain it further, below we have outlined the top benefits of outsourcing business processes:

Cost savings

Companies can enjoy savings of up to 70% by leveraging the salaries and costs in offshore countries.

In the Philippines, for instance, companies can hire offshore staff with a US$500/month salary for starting positions. A team of 10 employees would only cost them as much as a single worker in the US with an equal position.

Global market

Small and medium-sized businesses find it most difficult to hire local employees that suit their roles.

The widened skill gap in developed countries, paired with economic crises, affects their capacity to expand their teams as needed.

Businesses get to access a bigger pool of talent that can fit their requirements. They can have better options in hiring employees since they are not limited to what is available in their home countries.

Global presence

At the same time, outsourcing opens clients to global trade opportunities. They can establish their global presence and expand more easily to other locations since they already have operations in the area.

Flexible workforce

Outsourcing is a great way to establish a remote workforce, especially for companies looking to implement this setup for the first time.

BPO reduces internal local compliance obligations, including providing additional office spaces to employees. Instead, organizations can hold their business operations on a remote setup, most usually having their teams in an office provided by the BPO firm.

Leverage skill

Companies cannot always do everything on their own. Burnout within entrepreneurs and teams is more common than everyone thinks, especially with everyone filling up the tasks beyond their skill sets.

A BPO company enables them to leverage the skills of other specialist companies on more complex tasks such as accounting and IT.

Focus

Lastly, BPO enables organizations to focus on their core business functions. This is because most of their non-core business operations are done with the help of a reliable service provider.

Business process outsourcing examples

The BPO industry is vast, generating over $200bn annually and employing millions of people worldwide.

As stated in the Market Analysis Report, the global business process outsourcing market reached over USD 245.9 billion in 2021. Thus, it is foreseen that we will acquire a compound annual growth rate (CAGR) of 9.1% this year from 2022 to 2030.

The proliferation of the global BPO sector is utterly driven by several key factors that organizations take full advantage of:

Improved efficiency and agility Focus on core competencies Decreased operational costs Adapt to the ever-changing business dynamics

In general, when we speak of outsourcing, it always entails contracting out parts of business processes to an external provider, either domestically or offshore.

BPO can be seen in different forms and contexts, from hiring single staff to getting an offshore team.

Here we have listed some of the examples of business process outsourcing:

Big enterprise

Corporate outsourcing has been around since the industry started. The new breed of large companies are still taking advantage of its benefits and using it to expand their offerings further.

Some of the known enterprises that outsource their services today include the following:

Google. Google has been ramping up its outsourcing efforts since 2016 by delegating development and customer support. Facebook. Meta, particularly Facebook, outsources content moderation to the Philippines as a way to filter toxic content and keep the platform safe for its users. Wells Fargo. Wells Fargo has been outsourcing their operations to the Philippines since 2011. It has recently pulled out its functions in the country, though the company retained its BPO center in Manila. Medium-size businesses

A medium business with 50-500 staff might outsource the labor-intensive accounting and finance functions to a team in the Philippines.

Small business and entrepreneur

The recent Clutch survey stated that around 90% of small businesses plan to outsource their services in 2022 due to the efficiency and flexibility that companies get.

It is common for small business owners to have a Virtual Assistant (VA) working for them full-time and remotely from the Philippines.

Aside from this, organizations can delegate other services such as development, IT, and digital marketing.

What are the different types of BPO?

Outsourcing can be executed in different forms, depending on the outsourcer's needs. The truth is that not everyone is fully aware and has an in-depth grasp of the BPO sector.

For most people, BPO can simply mean farming out business processes to third parties located in another country, but this is just one type of BPO.

As for businesses, it is always vital to be familiar with the various classifications and functions of BPOs. This way, they are able to opt for a business process outsourcing provider that is best suited for their type of requirements and industry.

More importantly, outsourcing is not a one size fits all strategic approach, this is why it is not enough just know what outsourcing is and how it works.

There are several types of BPOs that businesses can choose from. The type of business process outsourcing can be characterized by its specialization, location, and size.

Generalist or specialist BPOs

Business process outsourcing is in the human resources and professional services sector.

However, their services extend across all industries. The majority of BPOs are generalists in that they offer a full range of professional services.

Meanwhile, some specialize in certain verticals, such as the following:

Legal process outsourcing

Legal process outsourcing deals more with delegating legal processes and compliances to legal firms in another area.

Knowledge process outsourcing

Meanwhile, knowledge process outsourcing enables companies to outsource knowledge-related work, including research and development, innovation, and creativity.

Location

Business process outsourcing typically operates from developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost of living and bigger populations. Different locations offer different advantages.

Size of BPO

The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people.

Offshore

Offshore outsourcing refers to the process of delegating a part of operations or a department to an offshore country.

To maximize profitability and efficiency, companies choose to outsource to a different region or timezone. India, the Philippines, and South Africa are some of the popular countries known for offshore outsourcing services.

Onshore

Onshore outsourcing or onshoring, meanwhile, is preferred by firms looking to delegate their services within their country.

Onshoring does not offer as much savings as offshoring or nearshoring. However, clients prefer this as a way to maintain their branding and satisfy their local markets.

Nearshore

Lastly, nearshore outsourcing is preferred by companies that do not want the hassles of time zones and cultural differences in offshoring but still want to get the best out of their delegated services.

Through nearshoring, businesses can collaborate with their teams located in nearby countries. This gives them the opportunity to maintain their local compliance and save on costs since most nearshore locations are cheaper than their onshore counterparts.

Functions of business process outsourcing

Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include:

Finance and accounting

Outsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss.

Healthcare

Healthcare outsourcing, meanwhile, organizes various back- and front-end functions for the healthcare and insurance industries.

Creative and content

Creative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content.

Tech, IT and development

IT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries.

Sales & customer support

Some BPO providers specialize in sales and customer support for pre- and post-sales transactions. This helps companies meet the expectations and demands of their customers, keeping them satisfied even after their purchase.

Marketing

BPOs and marketing firms can help in ongoing marketing, communication and branding activities for their clients. This helps them attract more suitable leads in a cost-efficient way.

Talent and HR

Businesses can delegate HR, recruitment, and compliance to professional employer organizations to maximize recruitment and workforce management.

Administration

Generalist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions.

Supply chain management

Lastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes.

The future of BPO outsourcing

We have gathered five expert opinions from renowned global business leaders. They shared how they perceive the future of outsourcing will be, including the trends that will prevail in the coming years.

Meg Marrs, Safer Senior Care

Meg Marrs of Safer Senior Care strongly believes that entrepreneurs and business leaders should outsource their essential tasks.

“Outsourcing certain roles has freed up my time to focus more on big picture strategy, rather than being completely meshed in the day-to-day tasks.” 

One thing is certain, outsourcing to support businesses growth is something that will never go out of trend.

Sean Nguyen, Internet Advisor

As for Sean Nguyen, Director of the Internet Advisor, outsourcing to streamline processes is another essential trend that businesses will continue to apply.

He quotes, “Outsourcing can be really helpful, even at the most incipient levels, because it allows you to streamline operations. If it's not essential to have it taken care of in-house, there is no reason to do so.”

Elandas Miller, Kicking It Sports

Elandas Miller of Kicking It Sports, has been outsourcing back office and creatives since 2017. “I like to think of outsourcing as a tool to help me get to my goals faster and more efficient without burning myself out.” 

Outsourcing to support both organizations' short and long-term goals is another trend that companies will practice in the foreseeable future.

Tom Baker, Tom's Projects

The founder of Tom's Projects, Tom Baker, offshores his entire product and development. “Outsourcing means that we can scale the team up and down when need be.” Scaling the workforce through outsourcing is, yet again, among the trends that will remain prevalent.

Bobby Reid, Capitol Tech Solutions

For Bobby Reid, founder of Capitol Tech Solutions “Outsourcing has helped our business by being able to provide expertise for a service quickly. While these contracts are outsourced, they are incorporated into our company culture when possible, since they are working full time with our firm.” 

Lastly, outsourcing to fill in talent gaps and expertise is one of the key trends that more and more organizations will utilize in the coming years.

The future of work is digital, says Outsource Accelerator Founder and CEO Derek Gallimore.

The world has moved on from manufacturing and creating products to providing services. And as we enter the post-pandemic world, he says we are “moving towards a single global economy.”

The concept of work dramatically changed with COVID-19, and things have changed for good. These changes made us realize that technology is available for remote and digital work interfaces.

Once showed an unsteady growth, the global outsourcing market spiked to US$245.9 billion in 2021. The sudden surge of demand brought by the pandemic, along with the worsened talent shortage, has led companies to increase their outsourcing efforts.

In a podcast episode, Derek explained, “There are eight billion people on the planet, and they are now all increasingly connected digitally.

There are [also] four billion people who are highly qualified professionals sitting around the world, and they're not just virtual assistants and basic roles. You can find [people with] PhDs, architects, accountants, or whatever you need for your business.”

To conclude, Derek believes that the global economy and a globally-sourced workforce are the future, and it is not going away.

Leaders all over the world also know that outsourcing is here to stay. Former US President Barack Obama says that jobs that have been outsourced cannot be brought back to the country.

As a result, it is better to retrain and re-skill the workers who have lost their jobs on account of outsourcing.

Obama further suggests that community colleges could provide the necessary skills for a person to be gainfully re-employed in the workforce. He adds that this is a necessity that Americans look forward to in the future.

Looking back doesn't always make people feel good, so it is essential that they retrain for the ‘jobs of the future.'

How to choose a BPO provider

Over the years, outsourcing has been the go-to strategic practice for businesses looking to scale their operations effectively.

But just like any other venture, companies should be wary of the possible drawbacks of outsourcing before selecting bpo providers.

Risks of BPO outsourcing 

Despite its advantages, business process outsourcing done incorrectly leads to outsourcing risks that affect a company in one way or another.

Hidden charges

Some BPO vendors do not totally disclose the total fees they charge and their terms. Clients could experience “bill shock” upon seeing the hidden charges they get.

Compliance issues

Compliance is crucial, especially in handling financial information and dealing with intellectual property. BPOs that violate compliances could risk their clients' reputations and branding.

Problems with security

Lastly, BPO vendors with loose security compliance could risk getting their client's data exposed and used for malicious purposes.

Choosing the right business process outsourcing vendor

The key to successful outsourcing lies in choosing a suitable bpo company and working with them along the way. Here are some of the considerations to look for in a BPO vendor:

Expertise

A BPO vendor's expertise can be shown primarily through their approach to their clients. Even without getting too technical, they can comfortably discuss the initial solutions to provide according to their client's requirements.

Compliances

Especially when delegating functions involving sensitive information, a bpo company should be up-to-date and compliant with regulations relevant to their services.

Check for ISO, HIPAA, and PCI certifications as much as possible.

Employee satisfaction

A good BPO company also places employee satisfaction as its priority. Check on employee reviews online to see how the staff feels about their company.

Technology

The tools and equipment a BPO vendor uses largely affect their performance in general. Check to see if they use updated technology at work and how they train their employees to use them.

Top BPO companies in the world's top outsourcing hubs

A wide range of business process outsourcing companies in different parts of the world provide the utmost services to their Western and local clients.

Many of them even earned recognition by award-giving bodies due to their performance in both their roles and their level of care for the employees.

Check out the top BPO companies in several outsourcing destinations below.

Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) services

With the rise of new offshore outsourcing locations, companies can have better options in terms of location and services they can delegate.

However, finding a suitable BPO company can be a daunting task to be done on their own.

It's a good thing advisory services such as Outsource Accelerator are there to help them.

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 400+ podcast episodes, and a comprehensive directory with 3,000+ BPOs from different locations.

Outsource Accelerator's offerings make it easier for clients to learn about and engage with business process outsourcing companies worldwide.

Want to learn more about outsourcing? Check out the Inside Outsourcing book as well as the Inside Outsourcing book review today!

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,300+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

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