Why companies prefer outsourcing to the Philippines over India

Why companies prefer outsourcing to the Philippines over India

OABPO Blog Team Published on September 30, 2013
outsourcing-to-the-Philippines-agent-cartoon

For years, there has been an on-going battle between India and the Philippines for outsourcing supremacy. Recently though, the number of companies outsourcing to the Philippines over its other Asian competitor is increasing, as evidenced by recently bagging the title as the world’s call center capital.

Both of these locations have cheap labor markets and offer unique values that draw in foreign companies. Here’s a short comparison between the two.

Outsourcing to India

As of late 2012, outsourcing to India is stated to be 30% less expensive as compared to the Philippines. According to the news portal Invest Vine, this is due to the steadily appreciating peso and depreciating rupee. Clearly, India offers cost advantages that appeal to companies with special budget constraints.

On the other hand, Indians are known for their thick accents, which are deemed undesirable for call center operations. Although considerable proportions speak decent English, it is British English, a legacy of the British colonial rule which differs in vernacular, context, and phraseology from traditional American English.

However, the true problem lies not on the accent or language, but on the disconnection of Indians from the Western culture. The local population is not familiar with Western food, movies, or pop music - aspects that generate significant Western influence. There are also local cultural practices that clash with traditional American cultural understanding.

As a result, customers from Western countries, and even clients themselves, find it difficult to communicate with Indian professionals.

Outsourcing to the Philippines

The Philippines has long been a contender in the global outsourcing arena. Currently, its niche lies in voice-based services, although there are organizational efforts to expand its reach to other specialized areas.

The main strength of this country is its workforce. In contrast to the US, a degree in college is a prerequisite for the natives to find good employment. Thus, it is not surprising that 95% of call center and outsourcing professionals are college graduates. This means that companies can ship not only their customer service functions, but other higher-value operations as well, including IT and other web services.

Additionally, English is the second language in the country. Most Filipinos can speak English fluently and are familiar with common idioms, with a clear neutral accent that makes them ideal for international customers. More importantly, Filipinos are accustomed to the Western culture - a key factor why foreign companies decide on outsourcing to the Philippines over other destinations.

The locals embrace song titles from US hit charts, watch Hollywood films, and consume food with Western origins, among others. They also have lifestyles akin to many Western countries. This strong cultural affinity helps in building rapport and communication to both clients and customers. It also prevents miscommunication and other cultural-related hindrances for other types of business operations.

Given the country’s English-proficient, college educated workforce, and cultural affinity with the West, more companies are choosing this Southeast Asian country over its rival particularly for voice-based services such as customer service and sales.

JOIN US ON FACEBOOK
Open Access BPO
Open Access BPO15 hours ago
#CustomerService metrics indicate the level of service your brand is capable of providing.
They can also reveal just how effective your strategies are, including your
• staffing
• training
• quality assurance, and
• service/people management.

Metrics are more diagnostic than curative: https://buff.ly/3RiolyQ

----------
Make dismal #CustomerService a thing of the past when you outsource your #CustomerSupport needs: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CallCenterOutsourcing #CallCenters
#CustomerExperience
Open Access BPO
Open Access BPO2 days ago
Customers appreciate brands with #eCommerce websites that have #LiveChatSupport because of its convenience, speed, and humanized interaction.
You need to optimize these 4 features to make your #ChatSupport exceptional: https://buff.ly/3fhVflL

----------
Upgrade #CustomerExperience with our 24/7 multichannel #CustomerSupport solutions: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CustomerService #eCommerce
Open Access BPO
Open Access BPO6 days ago
#Repost | Team Allied Services and You:
𝗢𝗽𝗲𝗻 𝗔𝗰𝗰𝗲𝘀𝘀 𝗕𝗣𝗢 is once again supporting #RyansRun during the TCS New York City Marathon this November.

Ryan's Run is a nonprofit organization and NYC Marathon Charity Partner. This #sponsorship supports #charity healthcare system Allied Services and their goal to improve the lives of people with disabilities, life-changing injuries, and chronic illnesses.

Photo shows Open Access BPO CEO Ben Davidowitz presenting the multilingual #CallCenter's donation to Allied Services' Jim Brogna and Steve Davidowitz.

----------
Open Access BPO is a multilingual call center with locations in both the Philippines and the United States. The company’s Chief Operating Officer, Ben Davidowitz, grew up in Kingston, PA. His brother, Steve, has been part of the charity campaign since its inception in 2010, and will be running the TCS New York City Marathon once again this year as part of Team Allied Services and You. He will be joined by an Open Access BPO employee.

Thank you @openaccessbpo

#openaccessbpo #teamalliedservicesandyou #pinoyrunner
#tcsnycmarathon #partnership #support #WeSpeakYourLanguage
#NYCMarathon2022
Open Access BPO
Open Access BPO1 week ago
Open Access BPO, in partnership with the Philippine Red Cross, is holding a #BloodDonation drive on September 28.

Employees who haven't signed up as #BloodDonors may do so by filling out this form: https://buff.ly/3dvNyI6

𝗦𝗮𝘃𝗲 𝗮 𝗟𝗶𝗳𝗲 𝗕𝗹𝗼𝗼𝗱 𝗗𝗿𝗶𝘃𝗲 𝟮𝟬𝟮𝟮
September 28 | 10:00 AM - 3:00 PM PST
Open Access BPO Makati, Glorietta 2 site lobby

#WeSpeakYourLanguage
#DonateBlood
Open Access BPO
Open Access BPO1 week ago
#Gamification works to create healthy competition and camaraderie among your #CallCenter agents while ensuring productivity and high quality support for your customers.

But it only works if done right. Here are several tips you can use to gamify your contact center: https://buff.ly/3dvR6Kt

----------
Ensure high quality support for your customers: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO1 week ago
Having a branded #CustomerService strategy sets your business apart from others, helping grow your customers base and enhancing #CustomerExperience.
Here's how you can develop a branded customer service strategy: https://buff.ly/3Smzv6A

----------
Outsource #CustomerDelight without losing your #BrandIdentity: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CustomerSupport #branding
Open Access BPO