Voice based outsourcing and call center services have flourished over the last decade. They outsource the process to overseas partners and so it is popularly termed as offshore outsourcing. The two places that companies consider for offshore outsourcing are India and Philippines. These countries have their own niches in outsourcing market, but Philippines score better than India while it comes to call center outsourcing.
Philippines came into the business of outsourcing in the year 1997. Over a span of years they have grown tremendously in the BPO sector employing more than 638,000 people and generating revenue of $11 billion. To the surprise of many, Philippines even overtook India last year in voice related call center services.
What makes Philippines better than India for call center outsourcing?
- English Speaking Manpower: Filipinos are well known among the US and U.K. companies for their English speaking abilities. They are placed as third largest English speaking nation next to U.S and U.K. This is because the country lies close to Western countries.
- English Accent: One main advantage of Filipinos is that they know different English accents of different nations. They can be easily trained with required accent of a particular client. Indians, on other hand, have heavy accent of their native language while speaking English.
- Affinity towards western culture: The culture of Filipinos has more similarity with that of western countries. This is because they have a tendency to adapt the western culture easily. This will help them to easily imbibe the communication culture required for the western clients.
- Hospitality: Filipinos are well known for their hospitality. Hospitality trait is important for any customer service to survive. Filipinos’ hospitality trait attracts the companies to set up their voice center in the nation.
- Government Support: The outsourcing industries in Philippines enjoy extensive support from the government. They provide tax benefits and infrastructure facilities at a low cost. Recently, Government also signed Code of Good Conduct with the outsourcing companies to ensure safety of the workforce and to collaborate with the companies to provide training to impart skills necessary for the industry at school and college levels. The government is also offering subsidies to attract foreign investments to the country. While in India, complaints are raising from the BPO industry that IT and outsourcing association body NASSCOM is not paying much attention to their needs
- 100% literacy: The population in Philippines is well educated and most of them hold a graduation. Most of the IT professionals in Philippines are developing in par with IT professionals of India.
In future Philippines is expected to move up the value chain and start delivering outsourcing services for other businesses where India is holding the supremacy. This will be a major challenge for the Indian outsourcing companies.