India vs. Philippines: Who’s winning the call center outsourcing game?

India vs. Philippines: Who’s winning the call center outsourcing game?

OABPO Blog Team Published on March 14, 2014

call-center-outsourcing---
There’s no denying that the Philippines and India are the two top leaders in the global call center outsourcing sector. These two countries have always been juxtaposed in the business process outsourcing (BPO), contact center, and offshoring industries. But the question is: Who really is winning the game?

The Indian quandary

For five years in a row, the entire Indian BPO sector recuperated from the losses incurred from several emerging economies such as China, Brazil, Mexico, Thailand, Poland, Chile, and the Philippines. But this recuperation is far from over, as India is continuously seeing jobs that were once theirs being entrusted to nearby countries, especially to the Philippines, their greatest rival.

call-center-outsourcing--

In a Nasscom economic survey last year, India has a 10% overall loss in the global BPO market. Not really a big one, but for a country that has been a world outsourcing leader for more than a decade, such loss is one big hit in the gut.

But what’s hurting India big-time for the past three years or so is its international taxation ruling. The existence of Permanent Establishment (PE) in every BPO activity in India, which basically gives increase to value added tax liability to the investor, is robbing the country tons of outsourcing revenues every year. For a long time, this has shooed a lot of foreign investors away and forced them to look for a greener pasture in nearby shores. And most of them flew to the Philippines.

Below this quandary are the grueling realities that Indian call center outsourcing needs to work on immediately: the worsening attrition rates, the declining economy, and their disintegrating English proficiency, which affects their voice sector immensely. And they have to take good care of the only sector they still dominate today: the IT sector.

The Philippine predicament

call-center-outsourcing-

The Philippines has its own share of problems as well. Despite its continuously flourishing state, the Philippine outsourcing industry is still pestered by the increasing employee attrition rate, data overload, and lack of professionals who will fill in the increasing managerial posts due to the left and right springing of new contact center businesses.

However, according to various global research and business groups, the Philippines remains to be one of the top outsourcing destinations in the world despite the aforesaid quandaries, overtaking leaders India and Ireland. It is set to increase 15% in revenue in 2014 and go bigger in the next three years.

In addition, the implementation of the ASEAN Economic Community (or AEC, the Asian version of Eurozone) in 2015 would boost this growth, as this will encourage giant international firms to invest more in the Asian region due to the lowering of trade and employment barriers.

Who wins it?

As of today, the Philippines is leading the overall outsourcing game, but it doesn’t mean it gets a permanent hold of the much-coveted spot. There are many things that await and may change the game for the country—chiefly the national elections in 2016, as it would welcome a change in economic policies. But for now, the Philippines must continue its effort in aligning the call center outsourcing sector with the improvements of different promising sectors such as agriculture, infrastructure, and tourism.
Hence, the game is far from over.

JOIN US ON FACEBOOK
Open Access BPO
Open Access BPO1 day ago
Open Access BPO recently held its HIV/AIDS awareness program.
The event, a partnership with the Makati Social Hygiene Clinic, began with a webinar and concluded with an HIV/AIDS screening for the multilingual call center's employees.

Read all about it here: https://buff.ly/3Idnf4g

#WeSpeakYourLanguage
#OneWithHealth
Open Access BPO
Open Access BPO2 days ago
As a trusted #outsourcing firm, Open Access BPO developed a flexible program implementation process that focuses on specific areas of the operation. This ensures that every specification is suited to help your program launch and run seamlessly.

Here's how our flexible outsourcing implementation processes match every partner's operational goals, schedules, and budgets: https://buff.ly/3R7fdxU

----------
Let's get your outsourcing projects started. Chat with our program experts today: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#BPO #infographics
Open Access BPO
Open Access BPO6 days ago
#OneWithDiversity is not just a themed hashtag we use when it's convenient or trendy, it's a commitment to be a safe space for our employees and partners. It's a promise to honor and celebrate their culture and authentic selves.

Pride Month may technically be over, but we'll continue to support and stand up for #diversity, equality, and #inclusivity because these are integral parts of Open Access BPO's core values. That's who we are.

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO6 days ago
Understanding how your approach can impact #CustomerService quality is only half battle; the language should be embraced by everyone in the company and understood by everyone who contacts you. Read: https://buff.ly/3nv3r2M

----------
Meet your global customers' demands with a language expert: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CustomerExperience
Open Access BPO
Open Access BPO1 week ago
Just before Pride Month ends, Open Access BPO is relaunching its an HIV/AIDS Webinar & Testing program.

It includes an HIV/AIDS awareness webinar and on-site testing in our Makati office.

Be more proactive about your sexual health and join us on TOMORROW, 9:00 AM to 3:00 PM.

#WeSpeakYourLanguage
#HIVawareness #AIDSawareness
#IdeaHubOA #OneForHealth
Open Access BPO
Open Access BPO1 week ago
It may seem like a month-long street party to some, #PrideMonth is also a protest against the discrimination and violence the LGBTQIA+ community has suffered through and continues to endure.

We asked some of Open Access BPO's #LGBTQIA+ employees what they resist against and stand for: https://buff.ly/3QUpqxG

#WeSpeakYourLanguage
#CelebratePride #Pride
#PrideMonth #PrideMonth2022
#LGBTpride
Open Access BPO