For years, India has led the global outsourcing industry primarily through its huge pool of IT graduates and British-

influenced culture. Right now although, far more and more American companies as well as other multinationals are transferring their operations from India to a driven BPO competitor from Southeast Asia: the Philippines. While India still has the bigger share of the pie, the Philippines is rapidly catching up to the outsourcing giant due to the fact of its crucial key advantages: much better infrastructure, customer-service-oriented workforce, and deep appreciation, understanding and powerful practice of the English language and American culture.

We pit India and the Philippines head-to-head against each and every other to know which is the wiser option for outsourcing or offshoring operations and who has the future in their hands.

India: Losing Its Momentum in the Outsourcing Race?

Great Numbers – The major strength of India is its numbers. Every single year, 120,000 IT experts enter the Indian workforce due to the fact of the education system that emphasizes science and mathematics. Bandwidth in India is also commendable due to their private undersea cable and the state-owned Videsh Sanchar Nigam Limited. Telecom rates are really low as a result of the industry’s privatization. Furthermore, software development remains a very lucrative organization in India, attracting established IT companies such as Microsoft, IBM, HP and others.

Suffering Top quality – For all its advantages, India may be speedily losing its momentum as the leader of the BPO business. According to a survey conducted by Kelly Services Inc. with headquarters in Michigan, India is losing its position as the number one selection of US companies for backroom operations. These firms are supposedly searching at the Philippines very first simply because of the country’s superior top quality in output. India also has a dilemma with its staff turnover at 31%, with 67% of its workforce transferring to other competing call centers. As a consequence, staff tenure in India is staggeringly low at only 11 months. South Korea has the longest staff tenure with 24 months, followed by the Philippines at 19 months.

Poorer English Accent – Far more importantly, although several Indians do speak English, their accent is still too thick, which may result in tough conversations with frustrated clients. This could be 1 of the factors in the choice by Tampa-based Sykes Enterprises to move some of its call center operations from Bangalore to the Philippines, as reported by The Motely Fool, a commercial web site about investment and finance, and the Tampa Tribune.

The Philippines: The New Destination for Outsourcing Businesses

Ideal Environment – The Philippines is fast catching up to India in terms of servicing the growing BPO market. Compared to India, the Philippines’ telecom infrastructure is vastly far better and organizations are much more safely set up and maintained because of the stable environment, growing economic incentives and extremely skilled human resources. American, European and Australian businesses that have already outsourced to the country are presently saving 40% to 60%, which translates to boosted profits and capacity for expansion.

Top-notch Workforce – There is also no debate over which workforce produces output with the higher quality. For instance, in terms of call center operations, Kelly Services in Michigan found out that the Philippines has the highest agent productivity in the region. Filipino call center agents manage an average of 107 outbound and 98 inbound calls in a day compared to Indian call center agents who can only manage 78 outbound and 73 inbound calls per day. In reality, looking at the bigger picture, the Philippines trumps India when it comes to the general good quality of its workforce. The Philippines is presently ranked number 1 in the availability of knowledge-based jobs and workers in the entire world. Moreover, in terms of labor good quality, the Philippines is ranked 4th amongst all Asian nations as a study by US-based Meta Group concluded.

More Westernized Experts – The key to the Philippines’ recent hammering of India may possibly be its deeply entrenched American influence. The country was colonized by Americans for 48 years and today, Filipinos live highly Westernized lifestyles, involving watching American TV shows and movies and speaking the English language in all its schools and branches of government. Filipinos are prized by their American employers by their excellent American accent, which is oftentimes indistinguishable from real American English. The customer-service orientation of the Filipino labor force also proves to be a large plus, as attested to by Mitchel Chang, Philippine internet site manager of Tokyo antivirus software program organization, Trend Micro, which employs over a thousand people in the country. According to him, Filipino professionals are service-oriented, responsive and passionate and speak powerful English.

High Literacy Rate – The high quality of the Philippines’ workforce is sustained by its impressive literacy rate of 93.four% according to the United Nations Development Programme. India pales in comparison with a mere grade of 61.%.

Diverse Outsourcing Opportunities – Like India, the Philippines delivers offshore software development, call center operations, Internet development, and other IT services. But it doesn’t end there. Over the recent years, the Philippines has been performing excellently in the global animation marketplace, which is growing since of the increasing popularity of 2D and 3D animated shows, movies and games. Main animation studios like Marvel, Disney, Warner Brothers and Hanna Barbera have already established offices in the Philippines, as well as Japanese anime studios like Toei.

Yet another really promising business is outsourced medical transcription, which thrives in the immense medical talent pool of the Philippines. The huge number of nurses, medical technologists, doctors and specialized medical transcriptionists in the country has been able to meet the increased demands of US hospitals, which are now required by the law to convert medical records into information format.

Several significant firms have already set up operations in the Philippines, such as MSN-Microsoft, AT&ampT, IBM, Washington Mutual, Sallie Mae, Expedia, Intuit, Transunion, Alltell and Bellsouth. Far more and more modest and medium-sized American firms have also chosen the Philippines as their BPO headquarters of choice. With all of these positive qualities going for the Philippines, all signs point to the tide of battle shifting soon in its favour. Reading from all present indications, the future of outsourcing or offshoring is clearly not India, but the Philippines.

VirtualeStaff is a contract staffing company that helps U.S. businesses reduce expense and retain talent for administrative jobs by recruiting highly skilled employees from, and maintaining infrastructure in, the Philippines.  

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