Why Philippines overtook India in voice based BPO?

India has slowly started losing its sheen in the voice based outsourcing market in the recent years. India’s loss has been the gain for Philippines and now Philippines is fast becoming a preferred destination for voice based outsourcing. It is said to have doubled its revenue over recent years and the revenue of Philippines in voice based customer care has exceeded that of India by more than $200 million. The revenue of Philippines outsourcing industry for pure voice support services was $5.2 billion.

Phillipines voice Bpo - photo courtesy benprise.com

One of the major advantages that have worked in favour of Philippines has been its large English speaking population. Philippines is known to be the largest English speaking countries in the World with the top 3 newspapers having the largest circulation in Philippines and a large number of television shows also in English. Philippines was once a colony of United States and there is a strong cultural affinity between the two countries.

The other comparative advantages that Philippines have over other outsourcing destinations are:

  • The Philippines government is providing a great deal of support to the outsourcing industry by giving training to large section of people and making them ready for this industry. The government recently signed a MOU with Asian Development Bank to provide skill based training specific for BPO’s to faculty members and students of various colleges.
  • Regulatory environment of the country is conducive to growth
  • Philippines is known as the most westernized country in the Asian markets
  • From an economic perspective, Philippines is said to have an advantage. The labour cost in Philippines is considered to be low when compared to competing countries which makes it an ideal outsourcing destination.

Apart from these advantages, Philippines has got a stable investment policy unlike India where the country is grappling with high level of volatility in Indian Rupee and what experts term as Policy Paralysis. Many small and medium businesses are considering Philippines as a preferred destination because of availability of skilled manpower and cost arbitrage.

Philippines has been taking away the voice based business from India in the recent years and it is estimated that voice based contracts outsourced to India has declined by 50% in recent years and that Philippines would have taken away 75,000 seats of India. The outsourcing industry in Philippines is expected to grow by leaps and bounds and is expected to employ 22% more people than who are employed now.

The industry is expected to additionally employ 638, 000 workers in the years to come and this figure is expected to touch 1.1 million by 2016. This shows the tremendous growth of this country in voice based outsourcing and the potential in the years to come.




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