Competition Between India And Philippines In The Global Outsourcing Arena

india philippines

With the global economic conditions not looking bright, countries such as India and Philippines have been locked in fierce competitions to bag renewed contracts and new contracts in the Business Process Outsourcing market. The fight has run its course and has visibly dwindled down with major contracts being signed and sealed.

While India was a major contender in the voice segment for a long time, contracts were not renewed. Industry experts are not seeing this as a failure but a chance to set the outsourcing industry on a path that veers away from the limiting world of voice calls.

Mohan A.V.K, executive vice president and global head of human resources of ExlService Holdings Inc., was quoted as saying, “The verdict is, of course, that the Philippines has taken a majority of the voice segment. This was actually a blessing in disguise as we (the industry) didn’t do voice very well. Voice calls involved work-shifts, which was a trouble for us as there were security problems. Plus getting the right accent was also an issue. The best thing we can do now is instead of competing, we must leverage each other’s strengths.”

ExlService Holdings Inc., has been a significant contributor to the Indian economy, earning a total revenue of Rs. 2500 crore in 2012. Although the firm is strictly multi-national, it does have a significant number of employees in India.

Moving towards back office management processes

Having lost significant voice call contracts to Philippines, Indian companies are looking to recreate revenue avenues in the outsourcing world. A large number of companies have moved away from voice calls and into the arena of back office task management services.

ExlService Holdings Inc., over the last few years has moved into the “decision analytics” and “technology” arenas of business processes. Like ExlService Holdings Inc., a vast number of BPO companies in India have turned towards the back office operation management instead of focusing energies on retaining voice calls.

This lucrative field offers job openings and a renewed role in the Business Process Outsourcing world to Indian companies. Echoing the sentiments of BPO companies across India, Mohan A.V.K was quoted as saying, “We are investing very heavily in building our capabilities… we’ve hired nearly 150 people from IITs and IIMs this year. We’re also actively scouting for acquisitions in this space.”

The fight for BPO contracts between India and Philippines is a token of the ability and resilience of Indian companies, to create niches in any arena of the market.

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