Indian BPOs Waking up to the Philippines Opportunity?

Present ed By Aditya Tiwari

About BPO
Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Ex : Coca Cola that outsourced large segments of its supply chain Services like customer care, medical transcription, medical billing, payroll management, tax processing, information technology enabled services (ITES)/BPO sector.

History of Indian BPO Sector

Indias tryst with process outsourcing began in the mid 1990s with GE setting up a Business Process Outsourcing facility in Gurgaon. Texas Instruments, American Express, Swissair, British Airways and GE, who started captive units in India.

A BPO hub in DLF Cyber City in Gurgaon,India

Major Reasons Behind India's Success in ITES/ BPO Industry

Abundant, skilled, English-speaking manpower, which is being harnessed even by ITES hubs such as Singapore and Ireland. High-end telecom facilities and infrastructure which are on par with global standards. Better focus on maintaining quality and performance standards. Fast turnaround times, and the ability to offer 24x7 services based on the country's unique geographic locations that allow for leveraging time zone differences. A friendly tax structure, which places the ITES/BPO industry on par with IT services companies. Proactive and positive policy environment which encourages ITES/BPO investments and simplifies rules and procedures.

BPO Scenario in Philippine

In the mid-2000s the Philippines emerged as a promising outsourcing destination for the western world. By 2008, companies such as Sitel, Genpact, and Citibank had already set up offices. Shifting local talent from India to fill up senior and middle level management positions in the Philippines.

Reasons for moving from India

The strength of the rupee and the weakening dollar. US economy slowing down and market forecast. The Indian government was unwilling to extend the STPI (Software Technology Park of India) tax holiday for BPO units beyond 2009. The growing infrastructure and transportation costs

Reason to Choose Philippines

World class infrastructure Ten-year tax breaks young, educated workforce, culture was much more Americanized Western culture and the conversational American-style English that Philippine BPOs offered mattered more to most Western companies. According to research firm International Data Corporation (IDC), Philippines capital Manila has already emerged as the #2 among outsourcing destinations in the Asia-Pacific, behind Bangalore.