Tuesday, December 21, 2010

How is the leader in call center World?

The Philippines are expected to overtake India as the call center capital of the world, a recent study by Everest Research Institute indicated.

The Philippines' call center common revenues are going to reach $5.7 billion this year or $200 million more compared to India's $5.5 billion. Business Process Outsourcing revenues are predicted to outreach $9.5 billion, thus catching-up to India's $12.4 billion. The Business Processing Association of the Philippines (BPAP) noted that surpassing India in the call center business was not "far-fetched" as more companies based there are moving their operations in the Philippines. The migrating to the Philippines is associated with basic factors: the country's existing and potential workforce has better English-speaking performance, the country’s telecommunications networks are of considerably better performance than of India, and Filipinos' affinity with the American mentality. Of course, in terms of sizes, India far outweighs the Philippines. India has started to work in the BPO industry 10 years ahead of the Philippines. The Philippines’ workforce is no match to India’s, given their total population of 92 million and 1 billion, respectively, a BPAP executive has said in a recent interview. Among the list of services currently offered by outsourcing companies, such as those stationed in the Philippines, the voice-based or the traditional call center sector has one of the lowest profit margins. Amongst several transfigurations of the BPO business model is to have the low-end call center services in the Philippines, which has cultural affinity with the mostly American clients, while the up-market technical services are located in India. A multi-country model also fits well for outsourcing companies concerned about managing their business' local country risks. The Indian industry group National Association of Software and Service Companies, or NASSCom, and the BPAP keep ties for partnerships and business exchanges. Most of the BPAP member companies still offer call center services but treat this as just their entry point to get a biggest portion of the clients' more profitable non-voice services. Call centers may be low-end and low-margin, but for the Philippines it meant an employment boon. So, BPAP officials noted that the growing local BPO industry should not only translate to higher economic growth, but also more jobs. In the call center industry lone, some 60,000 jobs will be up for filling in 2011. The BPO industry has just released its latest roadmap, wherein its revenues and workforce are targeted to reach $25 billion and 1.3 million, respectively, from $9 billion and 500,000 today.

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