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Two countries are quite known for providing effective business process outsourcing services — India and the Philippines. Businesses looking to outsource services from BPO companies usually go to these countries to look for a good partner. These two countries generally battle it out of the neck and neck in the global BPO industry.
“The top 7 globally accepted locations in a specific order are India, China, Philippines, Malaysia, Brazil, and Indonesia. China is soon becoming the favorite for basic low-value services, [the] Philippines is the preferred destination for financial services and voice-based support. It is also soon gaining ground in high-value services like engineering and legal BPO,” said Deepak Kapoor, founding member of the Business Processing Industry Association of India (BPIAI).
The BPO 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 percent which is a good figure. In 2013, it was reported that the BPO industry had gathered revenue of $447 million. And that just grew to $651 million, according to Statista. Moreover, India has 1.1 million Business Process Management (BPM) employees.
This sector in India offers a wide range of services, just like the Philippine BPO industry. They offer call center outsourcing services, including customer support, email support, web design, web development, content writing, proofreading, and accounting, among many others.
Typical services offered in Indian BPO companies
India has readily available infrastructure. It also has business process outsourcing training ready for new employees. Recruitment is also easy as there is enormous manpower in the country who are prepared and willing to participate in this arena.
Hindustan Times reported that the Business Processing Industry Association of India (BPIAI) stated that India’s share in the $186 billion global BPO industry is already a whopping 36 percent.
The BPO Industry In The Philippines
It is time to look at the state of BPO in the Philippines, which is considered the “Sunshine Industry”. When contact center companies started operating in the country, many of its citizens were happy because they could make a good amount of money even if they did not have to leave the country. It was a good thing. With English as its second language, the country became the top place for outsourcing in no time.
The growth of BPO across the nation has been swift. Since 2006 onwards, the country has been able to mark a growth rate of 46 percent annually. Though it has slowed down in the past two years, giant corporations and companies around the globe still go to the Philippines for outsourcing.
Business Processing Industry Association of India (BPIAI) reported that the country is outsourced for financial services and voice-based support, increasing its services in the engineering and legal BPO departments.
Which One Is Better: India Or The Philippines?
The debate on which country is better—India or the Philippines—when it comes to business process outsourcing has been going on for too long. These countries have their unique style of doing the work given to them. Also, each country has something to offer that the other cannot.
These two countries have seen how outsourcing has brought them huge revenue. Because of this, each government is doing its very best to accommodate every company coming in to outsource jobs. They must go over many factors, and choosing should always depend on the company’s standards, requirements, and needs.
It All Boils Down To Accent
A considerable part of outsourced customer service is that outsourcing means that companies do not have to spend a lot of money on facilities and training their staff. This is why plenty of call centers exist in India and the Philippines.
It has also been reported that previous investors in India have chosen to go to the Philippines instead. According to Phill Fresht, the CEO of the US-based HfS Research agency, the Philippines has very strong voice and multi-language skills. Not only that, but “the Philippines has a very strong culture for customer service delivery,” he added.
This has made India create some solutions to ensure that investors come back to them. Investors have been looking at the Philippines because of the accent, which they prefer over India’s.
These individuals are also well-versed in using the English language. India is offering more affordable packages to maintain operations and retain a significant market share. When it comes to hiring new employees, it is comparatively easier to find suitable candidates in the Philippines than in India. Ten percent of India’s graduates are employable, compared to only a third of the Philippines’ employable graduates.
Let Us Talk About Culture
Another important aspect of the India versus the Philippines debate is culture. India has a rich culture, and its people are proud of it. However, its uniqueness becomes a barrier to being competitive in the BPO field. Unlike the Philippines, which has a very Westernized culture, Indians are not that well-versed in American culture.
For many years, the former was under British colonial rule, which inevitably impacted their culture. However, this influence did not significantly affect their day-to-day lives. Britain has been more focused on mathematics and the sciences, and this is where India excels a lot.
Being a colony of the United States for several years, the Philippines was able to adapt most of its culture. Studies suggest that Southeast Asian nations have a stronger affinity towards the United States than their own country. However, once you do get to see how the Philippines works, you will be able to get a gist of how Westernized it has become. Although English is considered the second language in the Philippines, many of its population speaks it fluently. Additionally, the country’s leading university has been modeled after American universities.
In conclusion, it largely depends on what service a company or business wants to get. India is better in some areas, like tech support, while the Philippines is better in others, like customer service.
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