The outsourcing business is truly an economic boon for Asian countries and other parts of the world. There are many to mention about this industry that grew powerful over a decade due to the high demand for customer service. Large call center companies began to reap the rewards of their labor due to the continued patronage of their clients around the world.

When it comes to a notable leader in the call center industry, India has been said to have dominated the market. The year 2006 is the rise of globalization for business process outsourcing, with overseas contact centers in Asia, Central and Eastern Europe. Despite the report released by UK reporters, a disturbing side of the Indian call center industry’s lax security of customer data was uncovered. British media managed to uncover criminal networks selling millions of customer data, accessed from Indian call centers. As a result of this, many companies withdrew from the Indian call center industry during the last year. But overall, India is still grappling with this industry.

Let’s take a closer look at India, located at more than 7,000 km (4,350 miles), this country is located on a peninsula in South Asia that juts out into the Indian Ocean. India is bordered to the southwest by the Arabian Sea and to the east and southeast by the Bay of Bengal. With a record population of 936,545,814 estimated in July 1995, with an annual growth rate of 1.8 percent. About 74 percent in rural areas in 1991; high population density: 284 people per square kilometer, national average, the major states more than 700 people per square kilometer; 100 people or less per square kilometer in some border states and island territories. Bombay (officially renamed Mumbai in 1995) the largest city, with 12.6 million in 1991; twenty-three other cities with populations over 1 million. The language spoken is English, including the 1,652 different “mother tongues”.

Meanwhile, the Philippines is an agricultural country that is now receiving recognition in the call center arena. Now, the Philippines is considered to be the main player and competitor of India’s hot list. Foreign investors would say “hello Philippines”, which means that the country is the preferred destination for outsourcing compared to India and other countries such as China, Russia, Malaysia, Mexico, Brazil, Ireland and Canada. The Philippines continues to conquer the world of information technology, such as BPO and call centers. The valuable knowledge of Filipinos in customer service and other valuable resources are among the few reasons the Philippines is outperforming India. Large call center companies occupy the skyscrapers of the main business districts of the Manila metropolitan area and other provinces of the country.

Sophisticated contact center development throughout the Philippines is not possible without strong support from your government. In addition, the advantages of the Philippines IT outsourcing industry as an outsourcing destination include overall quality, low cost, good quality education, good value, growing domain expertise, and increasingly sophisticated performance metrics and management skills. programs. The American invasion is proof of why Filipinos are fluent in the English language. With a literacy rate of 94.9% in 2000, a female literacy rate of 94.8% and a male literacy rate of 95.1% is also a big reason. President Gloria Macapagal-Arroyo had designed programs that will boost the literacy rate of Filipinos with the alliance of different sectors led by the Department of Education (DepEd).

CYBER RUNNER

The Cyber ​​Corridor encompasses technology and learning centers that span across all super regions, from Baguio to Clark, Metro Manila, Cebu, Davao and neighboring areas. This was prioritized on Ms. Arroyo’s agenda in her 2006 and 2007 State of the Nation Address (Sona). In his recent July Sona of this year, he highlighted that the Philippines is among the world’s leading offshoring centers due to cost competitiveness and, more importantly, our highly skilled, proficient management and workforce. English and IT-enabled. The growth of ICT-based services in different regions of the Philippines successfully contributed significantly to the revenue collection of the country.

The Cyber ​​Corridor is an ICT channel that runs for more than 600 miles throughout the country, from the city of Baguio in the north to Zamboanga in the south of the archipelago. Backed by a $ 10 billion high-bandwidth fiber digital network and backbone, the Cyber ​​Corridor will be home to numerous cyber service providers providing expert services in various ICT fields, such as outsourcing. of business processes (BPO), contact centers, animation, medical and legal transcription, software development, e-learning, e-entertainment and games, and other back office operations, among others.

BPO and contact center locators are continually looking for places to establish their business. The growing demand for more practical and viable outsourcing sites outside Metro Manila, Metro Cebu, Clark in Pampanga, Baguio City and Metro Davao, considered mature sites, has stimulated the growth of ICT in the field. Cities like Sta. Rosa, Lipa in Batangas; Legaspi and Naga in Bicol; Tagbilaran, Tacloban, Dumaguete and Bacolod in the Visayas; and Cagayan de Oro in Mindanao currently host some of the top BPO players in the country. What the locators of these places recognize is the availability of quality workforce, redundant telecommunications facilities, solid businesses, and incentive packages from local governments, among others.

WHY INVEST IN THE PHILIPPINES?

According to the Philippine Economic Zone Authority (Peza), the Philippines is fast becoming the preferred haven for foreign investment in the Asia-Pacific region. Your climate investment is more conducive than ever to foreign investors. It has a continuous program of economic and financial reform to be more competitive in the international market. It has gotten rid of excessive government regulations and liberalized all sectors of its economy.

Peza said that the telecommunications, shipping, oil, banking and insurance industries have been deregulated. With a strategic location, the Philippines provides a natural gateway to other economies in Asia and the Pacific. It has flourishing business ties with its Asian neighbors due to shared history, cultures, and tradition. Economic reforms are underway and continue to improve. Businesses are liberalized, promotional and less regulatory, and in tune with global competition. There is full foreign ownership (100%) of the companies, facilitation assistance and simplified investment procedures. A market made up of 76.5 million Filipino consumers.

Peza is a government corporation established through a legislative enactment known as the “Special Economic Zone Act of 1995.” It is an investment promotion agency and a state corporation, attached to the Department of Commerce and Industry (DTI). It offers ready-to-occupy locations to foreign investors who are exporting producers or exporters of IT services in world-class and environmentally friendly IT Economic Zones and Parks / Buildings.

PHILIPPINE VS INDIA

Compared between the Philippines and India in terms of labor, costs and government policies. In terms of manpower, the Philippines produces 380,000 graduates a year. The country has an abundant supply of quality workforce with a large number of knowledge-based, multi-skilled, highly educated, highly skilled, literate English-speaking workforce. Low job rotation (less than 1%), high productivity returns, highly adaptable to model changes and familiar with the needs of quality work. India, on the other hand, produces more than 75,000 IT graduates and 20 English-speaking graduates from lakes annually.

About labor cost:

According to the Department of Labor and Employment (DoLE) Bureau of Labor and Employment Statistics revealed in 2002, employers in non-farm establishments spent a total of PhP460 billion on labor costs, representing a 46 percent increase over to the one incurred in 1998 in PhP315 billion. At least a third of the total cost of labor still corresponds to manufacturing facilities. While India’s labor costs have skyrocketed over the years but have been offset by falling telecom rates. Typical salaries range from $ 5,000 to $ 12,000 for technical staff, while administrative salaries range from $ 3,500 to $ 7,500.

Government policies:

When it comes to political stability, democracy is at its best with true checks and balances in the Executive, Legislative and Judicial branches of government. Freedom of expression is maintained at all times and the Philippine press remains the freest and most open in Asia, if not the world. The Indian government, meanwhile, managed a national minister specifically for IT. The government favors foreign ownership of TI and does not impose export taxes.

With the reports indicated, the call center industry is expected to continue to be the most promising business in the world.