Philippines to Beat India as BPO Capital of the World Before 2015
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Before 2015 arrives, the Philippines will have beaten India as the business process outsourcing (BPO) capital of the world according to industry experts. Already, the Philippines will surpass India in the voice-based sector, which is primarily made up of call centers. About 45% of India's total exports in BPO involves voice-based services that are estimated to generate $5.58 billion this 2010. On the other hand, according to the Business Process Association of the Philippines (BPAP) and Everest Research India, the Philippines will produce an astounding $5.70 billion this year in voice-based services alone.
Philippines' Advantages Against India in BPO
Analysts have long pointed out the various advantages of the Philippines over India when it comes to BPO services. Filipinos have a deeper understanding of American culture because of their country's significant Western influences. The Philippines is also known to use the English language in their schools, public offices and companies. This attractive feature has persuaded more and more American and European companies to transfer their outsourced operations from India to its Southeast Asian rival.Other factors that are massively influencing the opinion of investors are the higher tax incentives in the Philippines, as well as the lack of industries competing for skilled manpower. Large companies such as HSBC, Cisco, BT Plc and T-Mobile are now shifting their customer service operations and back-office needs to the country partly also because of the high staff turnover in India.
Nikhil Rajpal of Everest Research India says that in terms of standalone voice business, the Philippines is set to beat India as the call center capital of the world. The benefits of outsourcing to companies such as BT and Cisco are tremendous. A customer support representative in Manila costs a mere quarter of the price of his equivalent in the United States. Outsourcing therefore, saves companies enormous costs and allows them to be competitive even in the current sour economic climate.
Because of the Philippines' outstanding pace, experts forecast that the country will exceed the $12.4 billion outsourcing industry of India within the next 5 years. In the last 2 years, the Philippines outsourcing and offshoring industry, estimated to be worth $9.5 billion, posted a compounded growth of 27.6%.
So, where does the future of outsourcing lies?
The future does seem to look unpromising for India compared to the Philippines as its BPO industry only posted a compounded annual growth rate of 11.92% in the last 2 years. In contrast, according to Oscar Sanez of BPAP, the Philippines is bound to grow by at least 20% yearly in terms of BPO exports over the next 5 years. If the Philippines keeps on making the right decisions to boost its already booming outsourcing industry, the world may indeed see a new BPO leader sooner than people think. More Info About Outsourcing and Offshoring
Know more about offshore outsourcing in the Philippines. You might learn a few important keys that will come in handy when you try offshore outsourcing, or useful tricks if you're already outsourcing IT/web services in the Philippines.
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- A lot of blame has been heaped on outsourcing in recent times because of the slowing down of the economies of the US and other Western nations. Many are passionately calling for businesses to stop outsourcing and for Western governments to exert more control over these companies that supposedly drag economies down. Meanwhile, politicians have been quick to stoke the issue, apparently at least in part, to further their political careers.
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- The primary reason why the global outsourcing industry took off and flourished is that it made it possible to drastically cut costs while maintaining high rates of production and excellent quality standards. If you have tried to outsourced but you never dared to outsource more than one or two positions, it may be time to step up your game and give your competition a real run for their money. Outsourcing most of your tasks is a great idea if you want to focus more on directing the project rather than doing the "dirty work" yourself.
- Considering Outsourcing? Tips on Your First Ever Outsourced Project
- Outsourcing or offshoring - everybody's doing it and earning jaw-dropping profits from it but somehow, butterflies start fluttering in your stomach whenever you consider the possibility of doing it yourself. Well, don't be too hard on yourself. Shipping very important projects to countries halfway around the world, like the Philippines, does have its share of risks and challenges. However, it's also disadvantageous for you to be too scared of exploring new competitive strategies like outsourcing or offshoring. Get cold feet long enough and your outsourcing competitors with their boosted production and profits may soon crush your business to the ground.
- Why Filipinos are the Best Offshore Workforce Today
- For starters, the Philippines was colonized by Americans for 48 years during which Filipinos were taught how to speak english in schools patterned after their American counterparts. When the country was given its independence in 1946, the government that was created was also very similar to that of the United States. And today, due to the highly Westernized media in the Philippines, Filipinos are up-to-date with almost everything that happens in the US, whether it's current affairs, fashion, technology, entertainment or anything else.
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