Business outsourcing is truly an economic boon for Asian countries and other parts of the world. There is so much to mention about this industry that became powerful over a decade due to the high demand for customer service. The big call center companies started to reap the rewards of their labor due to the continuous patronage of their clients all over 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 published by the UK reporters, a disturbing hidden part of the customer data security of the Indian call center industry has been uncovered. The British media managed to uncover criminal networks selling data of millions of customers, which was accessed from Indian call centers. As a result of this, many companies withdrew from the Indian call center industry during the last year. But in general, India is still coping with this industry.
Let’s take a closer look at India, located over 7,000 km (4,350 mi), 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: national average of 284 people per square kilometer, more than 700 people per square kilometer in the main states; 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, being an agricultural country, is now getting recognition in the field of call centers. Now, the Philippines is considered to be the top player and competitor on India’s favorites list. Foreign investors would say “hello Philippines”, which means that the country is the preferred destination for outsourcing against 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. Filipinos’ valuable knowledge in customer service and other valuable resources are among the few reasons why the Philippines is outperforming India. Large call center companies are occupying the skyscrapers of the main business districts of the Manila metropolitan area and other provinces of the country.
The sophisticated development of contact centers throughout the Philippines is not possible without the strong support of your government. Additionally, the advantages of the Philippines IT outsourcing industry as an outsourcing destination include overall quality, low cost, good quality education, good value, increased domain expertise, and increasingly sophisticated performance metrics and project management skills. programs. The American invasion is proof of why Filipinos are fluent in the English language. With a literacy rate of 94.9% for the year 2000, with a female literacy rate of 94.8% and a male literacy rate of 95.1% it is also a big reason. President Gloria Macapagal-Arroyo had designed programs that will boost the literacy rate of Filipinos with the association of the different sectors led by the Department of Education (DepEd).
CYBER CORRIDOR
The Cyber Corridor encompasses technology and learning centers throughout all the super regions, from Baguio to Clark, Metro Manila, Cebu, Davao and neighboring areas. This was prioritized on the agenda by Ms. Arroyo in her 2006 and 2007 State of the Nation Addresses (Sona). In his recent Sona in July this year, he highlighted that the Philippines ranks among the top offshoring hubs in the world due to cost competitiveness and, more importantly, our highly-skilled, knowledgeable management and workforce. English and IT-enabled. The growth of ICT-enabled services in different regions of the Philippines contributed significantly to the country’s revenue collection.
The cyber corridor is an ICT channel that runs more than 600 miles across the country, from Baguio City in the north to Zamboanga in the south of the archipelago. Backed by a $10 billion high-bandwidth fiber backbone and digital network, the cyber corridor will be home to numerous cyber service providers who provide expert services in various ICT fields such as business process outsourcing ( BPO), contact centers, animation, medical and legal transcription, software development, e-learning, e-entertainment and games, and other administrative 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 of Metro Manila, Metro Cebu, Clark in Pampanga, Baguio City and Metro Davao, considered mature sites, has stimulated the growth of ICT in the field. The cities like Sta. Rosa, Lipa in Batangas; Legaspi and Naga in Bicol; Tagbilaran, Tacloban, Dumaguete and Bacolod in Visayas; and Cagayan de Oro in Mindanao are currently home to some of the country’s biggest BPO players. What locators recognize in these places is the availability of quality labor, 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. Its investment climate 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 freed itself from excessive government regulations and has liberalized all sectors of its economy.
Peza stated that the telecommunications, shipping, oil, banking and insurance industries have been deregulated. Strategically located, the Philippines provides a natural gateway to other Asia-Pacific economies. It has flourishing trade links with its Asian neighbors due to shared history, cultures and traditions. Economic reforms are underway and are continuing to improve. Business is liberalized, promotional and less regulatory, and tuned for global competition. There is total foreign ownership (100%) of the companies, facilitating 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 Law of 1995”. It is an investment promotion agency and a government-owned corporation, attached to the Department of Trade and Industry (DTI). It offers ready-to-occupy locations to foreign investors who are export producers or exporters of IT services in world-class and environmentally friendly IT Parks/Buildings and Economic Zones.
PHILIPPINES VS INDIA
Compared between the Philippines and India in terms of manpower, costs and government policies. On the job market, the Philippines produces 380,000 graduates annually. The country has an abundant supply of quality labor with a large pool of knowledge-based, multi-skilled, highly educated, highly skilled, literate and English-speaking workforce. Low job turnover (less than 1%), high productivity returns, high adaptability to changes in the model and familiar with the needs of quality work. India, on the other hand, annually produces more than 75,000 IT graduates and 20 English-speaking graduates.
About labor cost:
According to the Bureau of Labor and Employment Statistics of the Department of Labor and Employment (DoLE) revealed in 2002, employers in non-agricultural establishments spent a total of PhP460 billion in labor costs, which represents an increase of 46 percent over to PhP315 billion incurred in 1998. At least a third of the total cost of labor still corresponds to manufacturing establishments. While India’s labor costs have crept up over the years, they have been offset by falling telecom charges. 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 on the executive, legislative, and judicial branches of government. Freedom of expression is upheld at all times and the Philippine press remains the most free and open in Asia, if not the world. Meanwhile, the Indian government ran the national ministry specifically for IT. The government favors foreign ownership of IT and does not impose export taxes.
With the indicated reports, the call center industry is predicted to remain the most promising business in the world.
