Philippines trumps India for BPO business, TCS opens center

Philippines trumps India for BPO business, TCS opens center

Summary: IBM puts Philippines ahead of India as most sought after location for BPO services. Indian firm Wipro is joined by TCS with BPO facilities in Philippines.

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Earlier this week I came across a story that TCS was opening a BPO center in Philippines, I read through it and didn’t pay much attention. Later today I saw a story which claimed that Philippines was fast becoming a outsourcing hub. US customers calling for help would soon have their calls directed to Philippines. This explained the decision by TCS to start operations there.

IBM named Philippines as the most sought after destination, beating India. The rapid BPO industry growth in India has seen an increase in cost which is being cited as one of the reasons when compared to Philippines. The IBM report claims, Philippines offers a similar environment. These observations come from the Global Locations Trend report from IBM who have opened three facilities in Philippines.

IBM’s centers will be offering HR, customer relations, finance and administration for sectors like entertainment, consumer technology and telecommunications. TCS’s move seems to be a strategic decision realizing the growing potential in the country. A TCS spokeswoman said that their facility will be used for non-voice BPO services.

India’s current outsourcing revenue is pegged at $70 Billion while Philippines is at $9 Billion. A roadmap from the Business Processing Association expects this number could be $25 Billion by 2016. Three years ago, Wipro setup a center in Philippines which now has close to 2,000 employees. Clearly there is momentum for the country that has English language part of their school curriculum.

It disappoints me that India hasn’t been able expand BPO facilities deeper into the country. If the government goons would give up on their regional agenda for votes and work with NGOs to improve spoken English skills, we might be able to improvise on our dominance and uplift other sections of society.

The IBM Global Location Trends 2010 report (PDF link)

Topics: Enterprise Software, CXO, Outsourcing

Manan Kakkar

About Manan Kakkar

Telecommunication engineer with a keen interest in end-user technology and a News junkie, I share my thoughts while preparing for my Master's in Information Management.

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14 comments
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  • RE: Philippines trumps India for BPO business, TCS opens center

    Go pinoy!
    noisemonkey@...
  • Alphabet Soup

    Do you think it is possible that more than 10% of the readers of this story know what BPO stands for? TCS? NGO?
    Compute_This
    • RE: Philippines trumps India for BPO business, TCS opens center

      @Compute_This actually I did, well at least for BPO and NGO. TCS probably less. Sorry about that.
      Manan Kakkar
    • RE: Philippines trumps India for BPO business, TCS opens center

      @Compute_This

      Maybe not. But by now 90% of those who did not know should know how to figure it out using Google & Wikipedia. It took me all of 7 seconds.
      mejohnsn
      • RE: Philippines trumps India for BPO business, TCS opens center

        @mejohnsn hah! I'll be more careful for post now on.
        Manan Kakkar
      • RE: Philippines trumps India for BPO business, TCS opens center

        @mejohnsn

        India?s current outsourcing revenue is pegged at $70 Billion while Philippines is at $9 Billion. A roadmap from the Business Processing Association expects this number could be $25 Billion by 2016. Three years ago, Wipro setup a center in Philippines which now has close to 2,000 employees. India is the first business process outsourcing country compared to Philippines. But now India hasn?t been able expand BPO facilities deeper into the country. But definitely it will come back. http://www.kensium.com/
        business process outsourcing
  • I guess India is now too expensive...

    And for cheap even India has to outsource. I wonder when the dear old USA will become the cheaper option...
    zkiwi
  • RE: Philippines trumps India for BPO business, TCS opens center

    I love his term "government goons". But I have to point out: because of their socialist past, Indian government bureaucrats have long been big on goonery. They still are, as the fiasco of the Asian Games showed. It still comes with the territory.
    mejohnsn
  • RE: Philippines trumps India for BPO business, TCS opens center

    @manan
    One swallow does not a summer make. Moving to Philippines may not imply India is not a preferred destination. TCS BPO also has centres in Budapest, chile etc. What do you make of that?

    KM
    kmenon
    • RE: Philippines trumps India for BPO business, TCS opens center

      @kmenon that these are growing markets as well, it pains me that Indian companies are going elsewhere and setting up business but not improving facilities in other parts of India. The IBM report and the news about TCS opening a center there can't be independent and coincidences.
      Manan Kakkar
  • India is taking for granted

    Most Indian bureaucrats and politicians as well as elite intellectuals are taking it for granted. Just because growth rate is 8%+ does not mean that they are super power. The economy is still heavily dependent on IT service revenue and development in other sectors is very less. Infrastructure development is stalled to major cities, broadband speed is unreliable in B & C class cities in India. Due to inflation cost of living is high which reflects into expensive service.

    Most of Indian IT sector is dependent on service sector instead of product development. That means anyone else from Philippines, south Africa, Chile, Argentina, or even China can easily knock them off once these countries figure out basics.
    p.vinnie@...
  • India is runing the growth coz of political goons...

    p.vinnie@. I'm completely agree with you ... I'm currently living in Philippines and the foreign investment has been increased alot with in SIX month...
    well wisher
  • India Leads in Call Center Outsourcing

    India's BPO industry has evolved and matured to present higher-end services that require judgment-based analysis and domain expertise, rather than function-specific, rules-based performance parameters alone. As service providers strive to offer end-to-end services, we see
    BPO falling into different segments. At one end of the spectrum is the traditional rules-based transactional outsourcing; while at the other end is judgment-based transaction processing and full-service business process outsourcing.

    India has won its spurs as the world's outsourcing destination of choice. Currently the country has a commanding share of the global outsourcing market.

    India is undoubtedly the most favored IT/BPO destination of the world. This raises the question why most of the big MNCs are interested in outsourcing their operations to BPOs in India. The answer is very simple- India is home to large and skilled human resources. India has inherent strengths, which have made it a major success as an outsourcing destination. India produces the largest number of graduates in the world. The name of India has become synonymous with that of BPOs and IT industry hence the name BPO India.

    Besides being technically sound, the work force is proficient in English and work at lower wages in comparison to other developed countries of the world. India also has a distinct advantage of being in a different time zone that gives it flexibility in working hours. All these factors make the Indian BPOs more efficient and cost effective. In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are looking to BPO India.

    A subset of outsourcing, Business Process Outsourcing (BPO) involves contracting the operations and responsibilities through a third party service provider. From the last couple of years, the BPO industry has evolved as the most substantial sector in the Indian market. India has emerged as the most favored location for all Bpo services across the globe. This has accelerated the Indian economy to the heights, progressively boosting the statistics depicting the growth in the years to come and it has been however forecasted that by 2020, more than 80% of the world of business process outsourcing services will be served by the Indian companies. Marked as the best place to attain superior quality services globally, the BPO industry is strengthening its foundation in India.

    http://phykon.com/
    Joe Samuels
  • RE: Philippines trumps India for BPO business, TCS opens center

    I agree with your point that the government goons would give up on their regional agenda for votes and work with NGOs.In India many people are suffering with their communication skills mainly with the english.So to improve the BPO Services in India BPO facilities should be more effective
    ------------
    <a href="http://www.vonnexonline.co.in/">BPO Services</a>
    prettymenn