When it comes to business process outsourcing services, there are two countries in the world that are quite known for such – India and the Philippines. These two countries have quite a good reputation when it comes to providing BPO services. Companies which are looking for BPO companies to outsource to usually go to these countries to look for a good partner. If Russia is known for its diamonds and the Middle East for its oil, then you could say that India and the Philippines are known for being the best.These two countries are usually battling it out neck to neck in the global BPO industry. One would offer better packages while the other would hit the other one hard by offering something even better. This competition has been going on for some time that people have become so used to the whole situation. Of course, it is always about friendly competition. The industry is continuously growing and there is a huge market out there that needs such services.

The Industry in India

Let us take a look at the BPO industry in India. Just like the Philippines, India is also growing at a fast pace. In 2005, it had a growth rate of 38% which is a good pace. Last year, it has also been said that this industry has been able to do work and services that amounted to a total of $7.2 billion. This should be around 6% of the whole world’s worth when it comes to business process outsourcing.

With that amount, it means that there is a huge lot of people working here. That is definitely real. See, last year’s numbers have stated that there have been around 400,000 people working in the industry. Of course, that does not include all those who may be freelancers or who have not disclosed their employment status.

This sector in India offers a wide range of services, just like the Philippine BPO industry. They offer services including customer support, email support, web design, web development, content writing, proofreading, and accounting among many others. In India, they have facilities already available. They also have business process outsourcing training ready for new employees. Recruitment is also easy as there are a lot of individuals in the country who are ready and willing are part of this arena.

The BPO Industry In The Philippines

It is time to take a look at the outlook of the business in the Philippines – considered the “Sunshine Industry”. When contact center companies started popping, many of the citizens were happy because it meant that they would be able to make a good amount of money even if they did not have to go out of the country. It was a good thing. And with the country having English as its second language, in no time flat, the call center industry was booming. Magellan Solutions Outsourcing Inc., which was founded in 2005, has been one of the top performing BPO companies in the Philippines, offering not only customer services but also other BPO tasks like data entry and payroll services.

The growth of BPO across the nation has been really fast that from 2006 onwards, the country has been able to mark a rate of 46% annually. That is a really high amount of growth and it is a lot higher as compared to that of India’s. Many huge companies around the globe have decided to go with outsourcing companies in the Philippines because the country has a huge talent pool that they can tap into to get the workers that they need. The country is known in the BPO international scene well for quality work done.

Which One Is Better: India Or The Philippines?

The debate on which one is better – India or the Philippines – when it comes to business process outsourcing (BPO) has been going on for too long. These countries have their own unique style when it comes to doing the work that is given to them. Also, each of these countries has something to offer that the other cannot. The competition has been getting fiercer each year although there have not been any untoward animosity between the two so far.

These two countries have seen just how outsourcing has brought them a huge amount of revenue and so each of their governments are doing their very best to be able to accommodate each and every one of the companies coming in to outsource jobs that are important and yet could not handle anymore in their home country. India has its own share of talents and the Philippines has too. It is always up to the company outsourcing to choose just which one is going to be better for them and which one would do good for them in the long run. There are plenty of factors that they have to go over and choosing should always depend on the company’s standards, requirements, and needs.

According to the latest reports though (here and here), the Philippines has already been overtaking India when it comes to this industry. This is because when it comes to providing customer service, there is a need for an accent that is more natural and easy to understand. That is why Filipinos have been chosen to do well when it comes to accent training. Although India can do the same, they still have this heavy accent or a more British accent. Investors call Filipinos’ accent as more neutral.

It All Boils Down To Accent

Although there are plenty of outsourced jobs, most companies still prefer to outsource their customer service tasks. This is because outsourcing means that they would not have to spend a whole lot of money on facilities and on training each of these workers. This is the very reason why there are plenty of call centers in India and the Philippines. As of late, the Associated Chambers of Commerce and Industry, a group in India, has disclosed that their native country has already been suffering from a huge loss when it comes to outsourcing jobs. They have already lost 70% of the businesses that they have had. 70% is a huge amount and they are estimating it to be worth $30 billion.

It has also been reported that the previous investors in India have chosen to go to the Philippines instead. This has made India create some solution to make sure that the investors come back to them. Investors have been looking at the Philippines because of the accent which is what they prefer over India’s. According to investors, the Philippines has a huge pool of talented individuals that they can tap to be part of the industry. These individuals are also well versed when it comes to using the English language and are also quite easy to teach. India, presently, has been creating better packages with a lot lower price rates so that operations would continue and they would still have a huge share of the market. When it comes to finding new employees, it is a lot easier to find new people in the Philippines as compared to India. 10% of India’s graduates are employable and that is only a third of the Philippines’ employable graduates.

Let Us Talk About Culture

Another important thing to look into when it comes to the whole India versus Philippines deal is the culture. India is one of the top countries in the world which holds well on into its culture. This means that it is pretty unique. However, its uniqueness and its culture is not helping them a lot when it comes to being competitive. Unlike the Philippines which pretty much has a culture that is very Westernized. India has also been a colony of the British for several years and it has been a major influence in their daily lives. Britain has been more focused on mathematics and the sciences and this is where India excels a lot in.

Being a colony of the United States for several years, the Philippines has been able to adapt most of the US’ culture. In fact, some studies have said that this Asian country seems to be loving the United States much more than its own. Of course, that has got to be given a lot more studying. However, once you do get to see how the Philippines works, you would be able to get a gist of how Westernized it has become. Aside from having English as its second language (with a huge portion of the country knowing how to speak it well), the Philippines’ premier university has been patterned from universities in the United States.

The Philippines is also known to have citizens that are customer-oriented, which, in other words, means that they aim to please. This is a very important aspect when it comes to doing customer service work. You have to know how to make sure that the customer is served well and that the customer ends up being happy. They are also more hospitable by nature and so it is a very huge advantage when it comes to doing customer care.

The Jobs Usually Outsourced

There are plenty of jobs that are outsourced by companies to both India and the Philippines. The top one being customer service. This is where the Philippines leads because of its huge talent pool that has a more neutral accent compared to those of India’s. Though there may already be schools in India that teach students on how to be able to land a job in the BPO industry, it seems like the Filipinos are naturals when it comes to this kind of task.

Writing jobs also belong to the top jobs that are outsourced to these countries. The good thing about outsourcing such is that you would not have to deal with having to train these people individually. There are also no additional expenses because you would not have to provide them with their own work stations. Just send all the topics that you need articles on and they would be sending you the work as soon as it is finished.

For very busy people who do need assistants, there is a way that you can have one without having to go through the whole hassle of setting up an office for that one person. This is through virtual assistants. Virtual assistants can pretty much help you with everything that you would like help with as they are well versed when it comes to admin jobs.

When it comes to people who do your taxes, hiring one to do the job for you can be quite costly. This is because you have to make sure that the people working on the numbers is satisfied with the pay or else you may find yourself with a whole new problem because the tax person messed everything up and may even have taken some for himself. Plus, it is not everyday that you would need a person to do the taxes for you. Tax preparation takes time but it does not happen on a daily basis. That is why this is a job that is oftentimes outsourced.

With each day, there are plenty of websites that are sprouting on the internet. And then there are those websites that need a lot of revamping. If you have no idea how to go ahead with that, there are plenty of talented web designers and web programmers who can do all of that stuff for you. Yes, it may be something you can do yourself however it should take you a long time. These web designers and web programmers know the craft so well that they can do it pretty much with their eyes closed.

Other top jobs that are outsourced to India and the Philippines include human resources personnel, social media customer service, email service, admin staff, telemarketers, data entry, researchers, legal assistants, transcriptionists, and tech personnel. Of course, there are other jobs too that can be outsourced, which are outsourced and which you can find done by those in the BPO industries in India and the Philippines. To find more about call center services and BPO solutions, ask for free quote today.

What do you think is the best place to entrust your customer service and back-office support? Share us your experiences in the comment form below.