For a long time, India has led the worlwide BPO industry,especially its great pool of IT graduates and British-influenced British culture. In the last ten years, they rapidly formulated the skills set blended with the capability of creating mass output with the millions of professionals they certified every year. They became the worldwide reference for providingvirtually every type of ITO and Call Center Outsourcing service in every corner of the world.
With a general market estimated at around U$ 70 billion, the Indian companies are reported to be responsible for approximately U$ 50 billion. That is roughly 70 %. The “TWITCH” companies (the 7 families: Tata, Wipro, Infosys, TCS, Cognizant and HCL), which alone, according to Gartner Research, have 36 % of the US IT services market, and 51 % of the European market, are the real big players, and also according to Gartner are proving to be IBM and EDS´s greatest competitors.
Aside from these titans, India still had about 250 different smaller companies that generateyield hundreds of millions of dollars each every year, making the Indian companies the most cash rich companies on the globe. This implies that, even though they are seeing many contender from other country destinations and companies, they can simply buy the market. Specially in the current times where cash is king. This is the reason why we are seeing the Indian companies move into all markets where there is a justifiable return on investment. Be it by the ways of the local market, such as Brazil or Poland, be it to use it as a nearshore platform to markets like the US and Europe.
Clearly these Indian Companies were the whales in this big ocean of Call Center Outsourcing industry, set to devour the small fishes which were the Companies from other markets around the globe. They’re just like fishes financially, compared to the whales of the cash rich Indian Competitors. So what can these companies do to step up to the challenge?
Some groups of companies like those in Brazil have followed a collaborative approach, which was being named the “whale strategy”. In the early 70´s, Walt Disney released an animated film called Fantasia, believed one of his first masterpieces´s. In one of the sceneries, a empty-bellied whale is after a large group of fish, which find protection under a big rock, where they stay cornered, since the hungry whale stayed put patiently waiting for its main course. This is when, one of the brighter fish, comes up with the thought that, if they came out of underneath the big rock in a formation that reproduced a whale, the hungry whale would be made to consider it was another whale too.
In Brazil where the cooperative spirit is strongest, several companies have started a lot of different consortium, building “whales”, so they can have greater critical mass different compelling advantages and capabilities, and also have a more financial clout.The challenge is to create a greater common good that the individual interest, in order to keep every ones dedication and toughness. In this case, the greater need to become a relevant international player plays a bigger purpose for every company, that if were to go exclusively, likely would not endure the first year.
Here in the Philippines however, a flourishing figure of American companies and other internationall companies were moving their operations from India to a determined Call Center Outsourcing competitors in Southeast Asia: The Philippines. Although India has a growing share of the pie, the Philippines is fast catching up with the BPO giant because of it’s all important advantages: improved infrastructure, customer service-oriented manpower, and deep appreciation, understanding and efficient practice of the English language and American culture. The Philippines does not only banking on one option alone but also using India’s failings as it’s strenghts. This is the primary cause how come it stands out against whale like no other could.
Opposed to the other players, the Philippines though just a distant second largest service provider in the planet after India has became the largest Call Center Outsourcing destination int the Asia Pacific.The Call Center Outsourcing sector actually grew by 25 percent in 2009 while the Philippine economy almost came to a grinding halt, rising at less than 1 percent.The industry yielded US$2 billion in revenues last year, up by 19% year on year. This still pale in comparison to that of Indian numbers though.
According to a survey conducted by Kelly Services Inc.Michigan, India is losing its spot as the number one choice of US companies for backroom operations.Suffering Quality – For all its advantages, India may be rapidly dropping off its momentum as the leader of the Call Center Outsourcing industry. The Philippines is rapidly catching up to India in terms of servicing the rising BPO market. It’s telecommunication infrastructure is immensely better and companies are more safely set up and maintained because of the steady surroundings, maximizing economic bonuses and exceedingly skilled human resources.American, European and Australian companies that have already outsourced to the country are currently saving 40% to 60%, which transforms to boosted revenues and capability for expansion.
More importantly also, while many Indians do speak English, their accent is still too thick, which may result in difficult conversations with frustrated guest.This could be one of the factors in the decision by Tampa-based Sykes Enterprises to move some of its call center operations from Bangalore to the Philippines, as reported by The Motely Fool, a commercial website about investment and finance, and the Tampa Tribune.
Another very promising industry is outsourced medical transcription, which thrives in the immense medical talent pool of the Philippines.The huge number of nurses, medical technologists, doctors and specialized medical transcriptionists in the country has been able to cope the raised necessities of US hospitals, which are now demaded by the law to convert medical records into data format.With all of these positive qualities going for the Philippines, all signs point to the tide of battle transferring soon in its favour. Many large companies have already set up operations in the Philippines, such as MSN-Microsoft, AT&T, IBM, Washington Mutual, Sallie Mae, Expedia, Intuit, Transunion, Alltell and Bellsouth.Reading from all present indications, the future of Call Center Outsourcing or Business Process offshoring is clearly not India, but the Philippines.More and more small and medium-sized American companies have also chosen the Philippines as their Call Center Outsourcing headquarters of choice.