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Why Offshoring Clients are Looking beyond India

by: Sarah Joson

Thursday, September 27, 2012 | Outsourcing News |

Labor costs increasing in the offshore outsourcing space

It appears that India is losing its lustre in the offshore outsourcing space as labor costs are continuously increasing. In a press release posted at ComputerWeekly.com, Arvato’s Global BPO Director, Debra Maxwell shares the crucial changes happening in the outsourcing industry and the latest factors that are highly preferred by IT clients.

Several factors apart from cost efficiency were identified. These are the competency of the workforce and world-class infrastructure of other emerging offshore outsourcing destinations, which is probably why the global outsourcing scene is shifting. Apart from being more economical, buyers are now looking for an efficient provider that will help them satisfy their own set of customers even more and improving other processes.

Putting cost issues aside, in order for other providers to come up against India, they should offer solutions via simple processes. Maxwell also cited that buyers are looking for offshoring locations with a stable political environment, strong government support, and ample security.

Of course, she said clients will also look at the capacity of the infrastructure and technology as their processes heavily rely on the internet and hardware. Another factor is the size of the English-speaking workforce, with at least similar cultures.

She added that the Philippines is emerging as the newest option for US and other English-speaking companies since Filipino employees assigned to voice-based processes have a neutral accent.

The Philippines got the highest score in the GlobalEnglish study which rates the fluency of employees in business English, surprisingly beating the UK, Canada, and India.

Furthermore, the BPO executive said each region has its strengths and weaknesses when it comes to outsourcing which is why buyers should do their homework. China, for instance, is the strongest contender for ITO processes. The Philippines, on the other hand, is also getting recognized for high-valued outsourcing services.

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