This goes to show that the two countries have been rivals in many common global business areas such as call centres or what is more aptly called Business Process Outsourcing or BPO. The Philippines is now the setting of BPOs with global links, an energetic industry that has helped the country in keeping the economy afloat for many years now. Business experts are saying that the BPO industry is expected to increase its revenues from $9 billion to some $25 billion in 2016. Some are even optimistic that BPO revenues will surpass that of OFW remittances. The call centre industry is a great help to the Philippine economy and to thousands of unemployed Filipinos whose qualifications are more than what is ordinarily required for a call centre customer support.
In 2010, the Philippines had been reported as a top BPO hotspot in the global market. Offering both inbound and outbound services, the Philippines continually attract analysts and investors overtaking India in providing the world with voice-related services. India’s 350,000 call centre workers have already been surpassed by the Philippine’s 400,000 employed call centre support staff.
There are many reasons why most global companies have entrusted their outsourcing requirements over to the Philippines’ BPO providers, to wit:
- Fluency in the English language – The country’s known affinity with the western culture had resulted to a better understanding of the needs of American consumers. Compared to India, there are more English speakers with better professional qualifications giving them the edge of quickly adapting to the American English’ or other countries’ accent requirements. The good English background taught in Philippine schools had even paved the way for non-voice outsourcing requirements as well.
- Low wage rates – There is a marked wide wage gap between industrialized and developing countries. Considering global recession and economic crisis, most global companies will be on the lookout for low wage countries offering the outsourcing requirements they need. While both India and the Philippines are in the same category of cheap labor cost, the Philippines’ demand a slightly higher rate than India due to its better English accent. Notwithstanding the fact that the country has an abundant supply of highly-talented and skilled professionals who can best qualify for the global requirements.
- Presence of reliable technology - The country is set technology-wise to the demands of outsourcing or business process outsourcing. There are over a hundred call centres currently operating in the country’s prime business districts like Makati City, Pasig City, Quezon City and Taguig City. Regional business hubs like Cebu, Baguio, Laguna, Bacolod, Angeles City and Davao City are some of the common installation and operation sites of BPO companies. In these locations, the technological facilities are kept at par with global qualities.
Even India recognizes the cost-effectiveness of setting up their BPO operations in the Philippines that they have slowly shifted the operations of Indian-based call centres to the Philippines.
This is not to say, however, that the Philippines will stay in this position forever, considering the reasons seen as influencing the growth of the business. There are more challenges that need to be prepared for like competition from other neighbouring countries like Malaysia or Vietnam. The BPO industry players should be able to come up with cutting-edge differentiation from the other call centres countries in Asia.
In fact, the Philippines need to be more vigilant on the shift in trend of outsourcing from voice to non-voice. This is another potential big economic booster if the BPO players will start enhancing this sector as early as now. It is predicted that 2016 will see a remarkable increase of demand for non-voice workers which includes internet marketing outsourcing workers such as web designers, seo experts, ppc professionals, content writers, and the likes. There is also this not-yet-fully-tapped healthcare information management market, which is also slowly showing some good indicating signs. The country should start training people in these fields as a preparation for the surge in the very near future. This will clearly put the Philippines ahead of India or any other country which may be looking at taking a little share of the market.
