Philippines taking over call-centers, but India looks to retain lead in overall BPO industry
By Ian Bhullar
Jul. 10 – India is traditionally seen as the choice destination for companies looking to outsource English-language call centers. However, the growth of the Philippines’ business process outsourcing (BPO) industry over the past decade is challenging this position, with businesses paying increasing attention to the advantages of Philippines-based call centers.
The island nation’s call center business has seen explosive growth of 25-30 percent per year, compared to India’s 10-15 percent, according to Salil Dani, research director at the Everest Group. Furthermore, the sector employs 400,000 people in the country, outstripping India’s 350,000.
Meanwhile, the Philippines’ overall BPO industry (which incorporates a much wider set of services) has grown from US$350 million in 2001 to over US$11 billion today. At least three factors explain this growth.
First, a history of cultural exchange between the Philippines and the United States has resulted in useful cultural and linguistic overlap. Young Filipinos often learn English from a much earlier age than their Indian counterparts, and a wider set of the population is exposed to American culture.
This suits American consumers, many of whom have long complained of not being able to understand Indian call center staff. Businesses are willing to pay more for this. Although Filipino staff earn an average US$300 per month at entry level, US$50 more than their Indian counterparts, they are received much more positively by service users.
