Philippines Edges Out India as BPO Capital

The Philippines has become the world's dominant player in the outsourced back-office operations industry, edging out India, according to an AFP report published by the Inquirer.net.

 

Citing industry data and the government, AFP reports that the local BPO industry's revenues would hit US$12 billion to $13 billion next year, rising to $100 billion by 2020 for a fifth of global market share.

 

A report from IBM released in October said the Philippines had this year passed India as the global leader in business process outsourcing in terms of the number of people each country employed in the sector.

 

"For business support functions... the Philippines has taken over the lead in the global ranking from India, after having challenged the top position for several years," notes the report obtained by the AFP.

 

Ivan Uy, secretary of the government's information technology commission, says the Philippines had definitely bypassed India in call center revenues with $5.5 billion last year compared with India's $5.3 billion.

 

The Philippines has more than half a million people working in call centers and related services compared with 330,000 in India. Indian companies have been setting up call centers in the Philippines to take advantage of the Filipinos' cultural links to the West.

 

"Many of these Indian companies do outsourcing work for US companies and their US clients say they prefer doing business with Filipinos so rather than lose those clients, they to move to the Philippines," Uy told the AFP.

 

India still has a huge lead in the more complex outsourced services such as engineering, software design and programming. But the Philippines is working on boosting its capabilities in those areas as well.

 

 

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