According to report released by Oxford Business Group, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) said the Philippines is set to take nearly $30 billion of India’s foreign currency earnings. India had already lost 50 percent of the business to other countries valued around $25 billion.
The institution said the lion’s share of business lost has been moved to the Philippines. One of the factors that contributed to this is the high number of employable graduates in the country which is 30 percent, compared to only 10 percent in India. The English proficiency of Filipino graduates and their neutral accent also make the Philippines a preferred choice. Large BPO providers such as Accenture and Convergys have been operating in the country, employing a total of 60,000 people. Other major providers are Teleperformance, Teletech, Stream, and Sykes.
In a survey of 100 BPO destinations released by Tholons, Manila was identified as the second most important BPO hub globally, pushing Mumbai down to third place. The top BPO destination is still Bangalore. However, seven of the Philippines’ key outsourcing cities made it to the top 100 list, while two are in the top 10.
ASSOCHAM Secretary-general D S Rawat said India will lose as much as 70 percent of call center and voice processes to foreign competitors such as the Philippines, and this could happen within the decade.