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Survey Shows India Losing 70% of Voice BPO to PH

by: Sarah Joson

Thursday, April 10, 2014 | Outsourcing News |

A report recently found that India’s call center sector is losing 70 percent of its voice operations to competitors such as the Philippines and Eastern European countries.

According to Assocham Secretary General D S Rawat, there’s a possibility for India to lose $30 billion in dollar earnings to the current leader in voice operations and the top investment hub for Indian financiers - the Philippines. He added that service providers in India should look into cost reduction and process alignment throughout the entire BPO sector.

The report noted that one of the ways Indian BPO operators can save 20-30 percent on costs is by relocating to a low-cost area within the country. Moreover, for non-voice processes, cost differential will be in the 10-15 percent range. For voice processes, it is expected to go beyond 20 percent.

Meanwhile, companies based in India were seen launching operations in the Philippines, a country known for its large English-speaking, educated, and employable workforce. It also boasts of a higher employable percentage of graduates with 30 percent, compared to India’s 10 percent. The report also pointed out that in India, much of the resources are spent on training.    

Rawat mentioned that aside from these factors, Filipinos have strong affinity with the US culture, making it an ideal destination for BPO companies that want to expand their operations.

Also, the report stated that telecom and aviation sectors are feasible markets not only for Tier-2 and Tier-3 cities, but for the growth of domestic outsourcing industry in general.  


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