According to a press release from Associated Chambers of Commerce and Industry of India (ASSOCHAM), India is losing 70% of its call center outsourcing business services to the Philippines and Eastern Europe. If this trend continues, India may lose up to $30 billion in foreign exchange revenue in the next decade unless it steps up to its competitors.
In our opinion, there are three reasons why the Philippines is getting a bigger slice of the pie in the call center business.
The Philippines has a treasure trove for great manpower.
It has well educated, English speaking, talented and easily trained graduates. According to the press release, 30% of graduates in the country are employable compared to a 10% statistic in India. Among the many reasons why call center business in the Philippines differs from other countries, accent seems to be the major factor why most BPO companies prefer to invest in the country.
Philippine call center employees speak English with a neutral accent, due to the fact that the country has close cultural similarities with the US and the education system being taught in the universal language. Indian call center employees need to be trained for English speaking proficiency that takes up overhead costs and time.
Lower Operating Costs
Philippine BPO companies have less expensive operating costs than its Indian counterparts. While foreign currency plays a major role in operation costs and India can lower theirs compared to the Philippines, it will still be generally more expensive overall when you account for training manpower, outsourcing IT structures and bridging cultural differences. Even Indian BPO companies have set up some its substantial operations in the country because of cheaper overhead costs and lesser training time for its call center agents.
Not only does the Philippines have less expensive operating costs, it also delivers high-quality service. The industry delivers more than what it expected of them in terms of service, productivity and manpower.
Call Center Business in the Philippines Nowhere to Go Up
Even if India steps up to the game and reduces its operation costs, it still has a long way to go to be up to par with the Philippines’ high-quality business delivery and more importantly, its quality manpower.
In fact, more companies are choosing to expand their operations in the country as we speak. In 2013, the country’s IT-BPO sector had a 17% increase in revenue. It is estimated that by 2016, revenues will rise up to as much as $25 billion. This is great news for the country. The inbound call center business industry is projected to account for up to 10% of the country’s gross annual income and employ about 4.5M Filipinos, a sure sign of economic growth and stability for the country and the people.
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