India, which was the main contender in the global BPO scenario, now has a rival to deal with. The Philippines domestic BPO market is all set out to steal the show from Indian players. The outsourcing industry is set for a major showdown as Philippines is racing neck to neck with India to emerge at the top of the BPO global playlist. The Southeast Asian country is anticipated to outrun India and other contenders in several avenues of outsourcing.
It is quite apparent that many Western firms are looking at Philippines as a major outsourcing hamlet. They have been increasingly turning towards this western Pacific Ocean nation to find solutions to their outsourcing requirements. It has been estimated that India has suffered a loss of 10% of the global outsourcing market, mainly due to the emergence of the Philippines domestic BPO market. This has escalated, in part, owing to the rigid boundary of services provided by Indian BPO companies.
As a consequence, many companies are seriously considering shifting their outsourcing operations to Philippines. JPMorgan Chase & Co., which is considered one of the largest financial enterprises in the United States, is predicted to transfer many of its business operations to this nation. The company hopes to generate around $1 billion annually as savings in operation costs by enforcing this new business plan.
Exploration of new avenues fuels outsourcing
The Philippines domestic BPO market has been exploring its boundaries to produce new products and services. This has put it way ahead of Indian players, most of whom have failed to experiment beyond the traditional outsourcing borders. The outsourcing industry in Philippines has learned to quickly adopt and adapt to the changing demands of Western companies. These organizations are looking for collaborators who can maneuver their operations towards progress.
According to research conducted by NASSCOM, the premier Indian organization, Philippines witnessed a growth of 69% over a period of five years in the area of IT-ITeS services. In addition, the Business Processing Association of the Philippines (BPAP), which is the leading enabler of outsourcing operations in the country, has released the revenue figures from the previous year, which has revealed astounding growth. In 2012, the Philippines domestic BPO market brought in $13 billion, which was 18% greater than the revenue earned in 2011. This was in sharp contrast to the revenue of $11 billion gained in 2011.
All these factors indicate that the BPO industry in Philippines has earned rich dividends by shifting from traditional avenues of outsourcing. The Philippines domestic BPO market has certainly come of age and is set to soar into new horizons where ample opportunities beckon them to new pathways of success.