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PH still Far from Matching India’s BPO Industry

by: Sarah Joson

Saturday, February 25, 2012 | Outsourcing News |

Philippines' Call Center Market Share higher than India's

Even with the Philippines’ recent win in the call center outsourcing segment, India remains ahead in terms of overall services exports. In fact, India’s business process outsourcing (BPO) industry is currently valued at $15 billion, while the Philippines is only at the $9 billion mark. Also, there’s a huge difference between the size of the industry and range of services of both countries.  

According to research firm Everest Group, the call center sector accounts for $7.38 billion of the $9 billion BPO industry of the Philippines. This is slightly higher than India’s voice-based services exports valued at $7 billion. The country has dominated the voice-based sector due to the Filipinos’ cultural compatibility with the Western culture and better English accent.

However, even though the country’s BPO industry posts a faster growth rate, it will take more time before it reaches India’s current standing.  Moreover, when it comes to non-voice processes, there’s a huge difference between both countries, said Amneet Singh, Vice-president, Global Sourcing, Everest Group.

WNS’ CEO Keshav Murugesh stated that when it comes to data-based work, India definitely surpasses the Philippines. On the other hand, Swaminathan D, CEO and MD of Infosys BPO, said the Philippines is the second outsourcing location of choice of clients because it is able to supply candidates with various skillsets. He cited that Manila alone can provide 100,000 certified accountants for the finance & accounting segment which is a strong suit if they want to delve into the F&A market.
Operational costs in India are 5-15 percent lower compared to what the Philippines offers. Another advantage of India is it has several domestic BPO hubs which can provide more flexibility, whereas the Philippines merely has two known locations which are Cebu and Manila, and offers limited alternatives for clients. 


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