Philippine Contact Centers Surpass Indian Competitors
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When one talks about outsourcing, it is India that usually comes to mind. It cannot be denied that India has the largest market for outsourcing firms. Last October 26, 2010, we published an article entitled “Philippines Continues to Live Up To Offshoring Destination Of The Year Title“, which reported that despite having been given the Offshoring Destination of the Year award, the Philippines still ranks second to India in the outsourcing space. There is indeed a remarkable gap between these two countries. But while there is a significant difference between the two, recent figures show that the Philippines is actually starting to catch up and close the lead between it and India.
In the call center branch of the industry, latest forecast figures from the Everest Group show that the Philippines will be able to surpass India’s contact center revenues this year. Everest Group reported that the Philippine contact center industry will pocket about $5.7 billion, from clientele mainly from European and American companies, while the Indian contact center revenues will be $2 million less than the Philippines. The forecasted overall outsourcing revenues for both countries for 2010 however show that India’s revenues will still surpass the Philippines with a total of $70 billion as compared to the Phillippines’ $9 billion.
If you recall earlier, we wrote an article entitled, “Test Results Reveal Philippines Ahead in Language Skills over India“, which discussed the test results of the Pearson Talent Assessment’s Versant English proficiency Tests. The test showed that the Philippines is currently number one in terms of English proficiency, ahead of India. Adding this to the forecasts by Everest, it shows just how much the Philippines is actually catching up.
Even Indian outsourcing companies are seeing the difference, transferring some of their services to Philippine soil. Just recently, Tata Consultancy Services (NSE:TCS), an Indian outsourcing company, announced that it has opened a new BPO center in the country’s capital, in order to take advantage of the country’s pool of skilled individuals. Another company expanding in the Philippines is IBM (NYSE:IBM), who recently expanded its businesses in the Philippines with the opening of a new office located in Quezon City. This recent addition to IBM centers in the Philippines would cover finance and administration, and customer relationship management (CRM) services, among others.
Customer Relationship Management (CRM) and other contact center outsourcing services have significantly improved in a short span of time especially with the Philippine government continuously supporting the business process outsourcing industry with government officials providing positive projections for the industry in the next five years. Even current Philippine President Benigno Aquino III has advised that there will be a significant amount of budget that will be allocated for the IT outsourcing industry in the country.What this means is that, given the continuous accomplishments by the Philippine outsourcing industry, and the continued progress that the country is seeing with the positive forecasts and results, the country will likely double its efforts to maximize the potential that the outsourcing industry presents. In the near future, it is more than likely that the Philippine outsourcing industry will beat India, perhaps not only in the contact center aspect, but maybe even in the outsourcing industry as a whole. We will have to wait and see.
Author: Jamee C.
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Tags: contact center, india outsourcing, philippine outsourcing
December 7th, 2010 at 10:07 am
[...] Philippine Contact Centers Surpass Indian Competitors [...]
December 8th, 2010 at 11:05 am
Philippines is now in the #1 spot for outsourcing firms. As what I’ve heard, the Philippines is now the capital country to outsource the project. Why is it Philippines? Filipino people are nice and good attitude. Well, we all know that Filipino actually know on how to deal with a customer.
December 13th, 2010 at 8:11 pm
I think India is getting large number of outsourcing contracts, I am not sure about on which number India is stand but hope that is in among of top. Because India Has advantage of large population.
December 13th, 2010 at 9:18 pm
Indeed, more and more companies have begun to transfer their India-based outsourcing operations to the Philippines. Companies that have shifted their outsourcing directions include giant firms like Hong Kong-Shanghai Bank of Commerce (HSBC), Cisco, BT Plc and T-Mobile. With such changes in the two countries’ fortunes, one might ask: what do
What Philippine call centers have that Indians do not? First, the Filipinos are ahead of Indians when it comes to understanding the Western culture due to historical ties. Secondly, still as a consequence of colonization, there are more proficient English speakers in the Philippines than other Asian countries. Third, the Philippines has an impressive literacy rate, which outshines India’s rating by a 30 percent margin. Finally, Indian call centers are becoming too expensive for many foreign firms. Employee costs in certain industries in India have roughly increased to 60% of US comparable costs.
December 23rd, 2010 at 5:40 am
Philippines is one of the country to consider for outsourcing a job.
January 5th, 2011 at 5:56 pm
India should have learned to foresee this inevitable outcome in the world BPO competition. They know for a fact that there are several untapped potentials in the Philippine call center industry and that once these potentials awaken, it would be nearly impossible to stop them. Nevertheless, in spite of knowing there are looming threats, Indian call centers still charged expensive leasing and service rates and did not invest on English trainers to neutralize their accents.
January 17th, 2011 at 5:01 am
[...] ranks first in terms of revenues in the call center outsourcing space according to forecasts by the Everest Group, the country has proven that it is well on its way in further improving its lot in the industry [...]
January 25th, 2011 at 10:01 am
[...] destination since the country is fast in catching up with its other competitors, according to an article we have previously [...]
January 26th, 2011 at 9:01 am
[...] destination since the country is fast in catching up with its other competitors, according to an article we have previously [...]
July 18th, 2011 at 10:41 am
[...] reported in December 2010, just before the year of 2010 comes to an end, the Asian-country Philippines has already exceeded [...]
August 5th, 2011 at 9:54 am
[...] December 2010, we have published an article, “Philippine Contact Centers Surpass Indian Competitors”, where it has been pointed out that the Philippines may succeed in becoming the top destination [...]
August 5th, 2011 at 10:03 am
[...] December 2010, we have published an article, “Philippine Contact Centers Surpass Indian Competitors”, where it has been pointed out that the Philippines may succeed in becoming the top destination [...]