China gunning to be the IT outsourcing hub of the world: Can it compete with the Philippines?

OABPO Blog Team Published on June 24, 2013

An article from ZDNet explores recent industry rumors that China is trying to outpace India and the Philippines as the IT outsourcing capital of the world. But does the Sleeping Dragon have what it takes to overthrow the Pearl of the Orient Seas?

The Philippine IT-Business Process Outsourcing (BPO) Industry

IT BPO Industry

The Philippine IT-BPO industryย is booming. The 2012 IT-BPO revenue increased 18% from last year’s efforts as it contributed to $13 billion to the country’s GDP. The countryย is experiencing continuousย growth in terms of adding infrastructure, opening new call centers in different cities for more competitive rates, and significantly increasing the current workforce.

Similarly, the country produces about half a million college graduates annually who finished their courses from more than 2,000 universities and colleges in the Philippines. These graduates are given extensive training while at school, and are primary candidates for many companies as their ideals are not yet quenched by the system and could therefore contribute raw talent and fresh ideas to different organizations.

Not that these graduates are reporting for work without the necessary skillset, of course. The local government, in the form of the Technical Education and Skills Development Authority (TESDA) works hand-in-hand with the Information Technology and Business Process Association of the Philippines (IBPAP) to equip Filipinos with proper training and certification to be competitive in the IT-BPO industry. This includes extensive coaching on non-voice BPO services such as software and website development, along with data management techniques.

The China IT-BPO industry

On the other hand, China’s population is not without its merits. Chinese college graduates far outnumber that of the Philippines, as it can deploy a thousand-strong development team instantaneously. While the country is still developing in terms of the global IT industry, China’s strength lies on numbers.

As a popular story goes, Apple outsourced part of its iPhone production to China because the country has facilities and a workforce that can match what the company is looking for. The same logic follows with outsourcing IT solutions as majority of companies are looking for a quick turnaround. Faster implementation is always an ideal in the business: with thousands of workers at a company’s beck and call, the Chinese IT-BPO industry could be dubbed as booming, indeed.

Numbers against quality

To clarify, this does not mean that Chinese IT personnel are subpar with those of the Philippines. However, in this case it is important to point out that comparing the Chinese IT industry against the Philippine IT industry could be likened to a boutique firm going against a megacorporation.

A megacorporation (in this case, China) is able to produce thousands of employees within a moment’s notice. However, clients could experience delayed response to their requests, given the language barrier and work practices. For example, a gaming insider once complained that a Chinese programmer’s codes are often messy and difficult to understand, which makes it even more difficult for porting projects. Now, this could very well be an isolated case, but the premise still stands: given that China is focused on deploying projects as soon as possible, the quality of the projects could be compromised.

On the other hand, a boutique-type firm (the Philippines) focuses on staffing specialty projects with its clients based on its respective strengths, a highly educated workforce that speaks the same language as the clientele. Its personnel are highly concerned with customer satisfaction and this ensures that all projects are coded in a way that any other programmer would be able to understand. Of course, it also helps that the Philippines is a highly westernized country, which ensures that the language will not be a problem.

The bottom line is that companies will have to choose an IT destination based on their needs. If they want quick implementation with a significant number of programmers and designers, then they should outsource to China. If they want meticulous projects that are delivered within the deadline and consistent follow-through, then they should outsource to the Philippines.

Join us on facebook
Open Access BPO 16 hours ago
Exceptional #CustomerExperience is key to building brand loyalty and driving success.
Adding value takes it to the next level.

But what does that even mean? And what can you do to make it possible?

Find out now:

Outsource now to give your customer the best #CX they deserve:

#CustomerSupport #CustomerService
Open Access BPO 18 hours ago
๐€๐ซ๐ž ๐ก๐ฎ๐ฆ๐š๐ง ๐œ๐จ๐ง๐ญ๐ž๐ง๐ญ ๐ฆ๐จ๐๐ž๐ซ๐š๐ญ๐จ๐ซ๐ฌ ๐ฌ๐ญ๐ข๐ฅ๐ฅ ๐ง๐ž๐œ๐ž๐ฌ๐ฌ๐š๐ซ๐ฒ ๐ข๐ง ๐ญ๐ก๐ž ๐ฆ๐ข๐๐ฌ๐ญ ๐จ๐Ÿ ๐š๐ฅ๐ ๐จ๐ซ๐ข๐ญ๐ก๐ฆ-๐ฉ๐จ๐ฐ๐ž๐ซ๐ž๐ ๐๐ข๐ ๐ข๐ญ๐š๐ฅ #๐‚๐จ๐ง๐ญ๐ž๐ง๐ญ๐Œ๐จ๐๐ž๐ซ๐š๐ญ๐ข๐จ๐ง ๐ญ๐จ๐จ๐ฅ๐ฌ.

It's humans vs algorithm in this blog post! Read all about it now:

Outsource your content moderation and other business or knowledge process needs:

Open Access BPO 2 days ago
#CallCenters need to build a consistent and memorable #CustomerExperience covering all channels, both digital and non-digital.

You need a high-performing #multichannel team that can successfully implement your #CustomerService strategy.

Here's how:

Let us create the multichannel program and team for your brand:

Open Access BPO 3 days ago
Logistics, technical issues, and human error can impact #CustomerExperience.

๐—ง๐—ถ๐—บ๐—ฒ ๐˜๐—ผ ๐—ฎ๐—ฑ๐—ฑ๐—ฟ๐—ฒ๐˜€๐˜€ ๐˜€๐˜‚๐—ฐ๐—ต ๐—ฝ๐—ฟ๐—ผ๐—ฏ๐—น๐—ฒ๐—บ๐˜€ ๐—ถ๐—บ๐—บ๐—ฒ๐—ฑ๐—ถ๐—ฎ๐˜๐—ฒ๐—น๐˜† ๐˜‚๐˜€๐—ถ๐—ป๐—ด ๐˜๐—ต๐—ฒ๐˜€๐—ฒ ๐Ÿฐ ๐—ฏ๐—ฎ๐˜€๐—ถ๐—ฐ ๐˜€๐˜๐—ฒ๐—ฝ๐˜€.

Make a difference in your customers' lives.
We'll take the lead:

#CX #CustomerSupport #CustomerRetention
Open Access BPO 3 days ago
Even if you've set your brand to constantly delight your customers, there are times when you have to say no to their requests.

Master the art of saying "no" with compassion.!

Here are 5 tips for letting down your customers gently without ruining their entire #BrandExperience:

Choose an #outsourcing company that values #CustomerService and brand retention:

#CustomerSupport #CallCenterTips
#CustomerSatisfaction #CustomerExperience
Open Access BPO 3 days ago
Open Access BPO's CEO Benjamin Davidowitz spearheaded the recent Easter community initiative in Poblacion, Makati City:

This annual tradition aims to provide nutritious meals to those in need while spreading joy to children with balloon giveaways. This year marks the 7th consecutive year of the initiative, made possible with the dedication of volunteers from Open Access BPO. Together, they distributed 1,000 meals and 700 balloons to the community.

Learn more about our outreach programs and employee engagement activities:

#OABPOcares #CorpSocialResp
Open Access BPO