The Philippines is on the verge of replacing India as the world's top outsourcing destination for voice-related customer service and sales.
The Philippines has grown in popularity with the American business community due to its employees' closer relationship to Western culture, lack of other competing labor opportunites, and better tax incentives.
Currently, about 45% comes from voice services, including telemarketing, customer support, and lead generation. According to the Business Process Association of the Philippines, these services presently amount to about $5.58 billion. In contrast, the Philippines BPO industry is expected to generate close to $5.70 billion in sales of voice services.
The $9.5-billion Philippines outsourcing sector grew at a compounded 27.6% over the last two years. If it maintains its current breakneck growth rate, the Philippines could possibly pass India's $12.4-billion BPO industry in about five years.
In contrast, India's BPO industry has grown at a rate of about 12% during the last two years. If these trends continue, India will fall behind the Philippines prior to 2015.
The US, which controls 65% of the America dominates the world outsourcing market, and is responsible for about two-thirds of all sales. The Philippines' closer cultural ties, neutral accents, and understanding of American customers is a primary reason for the shift. The Philippines is currently the third largest English speaking country in the world.
India has a booming IT industry with strengths that are recognized across the countries of the world; After the US, India triumphs as a country with the largest English-speaking population; Regulatory benefits like 100% foreign ownership in IT-enable services industry also plays to India’s advantage.
ReplyDeleteWith the success of India’s IT industry, the central government identified the ITES sector as a key contributor to the economic growth that prioritized the attraction of FDI in this segment by establishing ‘Software Technology Parks’ and ‘Export Enterprise Zones’. Benefits like tax-holidays generally enjoyed by the software industry were also made available to the ITES/BPO sector.
The availability of technically trained and skilled manpower in India is making companies across the world look at the country as a profitable base to shift their high-end support services.
Advantages of Outsourcing to India include :
• High-quality and cost-effective services
• High-end technology and best-of-breed infrastructure
• Skilled, talented and experienced professionals
• Wide range of experience in providing outsourcing solutions
• Wide range of services
• Save on time, effort and infrastructure by outsourcing
• Maximize revenue and minimize expenses
• Quick turnaround time
• Latest software and technologies
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