BPO- India vs. Philippines

India has been the leading country in the business process outsourcing industry until the Philippines started advancing slowly entering the BPO industry one step at a time. The Philippines has numerous advantages over India allowing them to rapidly take over the BPO industry within a few short years.

  Philippines India
Language: ·     Filipinos are taught English in schools and they are able to learn the language with an accent neutrality . ·       Indians learn English, but with their tough accent it is hard for them to clearly communicate when dealing with customer service.
Low Costs: ·       In the Philippines, the cost of an employee in the BPO field is lower or as low as India. ·       India has the same low costs as the Philippines (about 75% lower than American wages) .
Government Support: ·       The government in the Philippines provides training for different technological needs, support for expansion, and the government also supports business delivery solutions to help startup companies. The government also takes businesses into consideration when creating laws and regulatory fees for companies. ·       There is a lack of government support in India which makes the companies hesitant to grow and prosper due to taxes, regulatory fees, and laws. Business owners will eventually turn to their cheaper competitors if the costs of supporting their business turns out to be too much because of the government.
Sales included in their call centers: ·       The Philippines have started including the sales aspect in their call centers not just voice based solutions. ·       India has had sales in their support service and is better equipped for this.
Voice-based service: ·       The Philippines is trending now in the voice-based services and it is said that they will take about 70% of India’s call center and voice business. ·       This is an opportunity for India to bounce back by implementing chat, social media, and tech support.
Number of Employees in BPO industry ·       About 1.5 million people/

105.6 millionà population

·       About 400,000 people/

1.35 billion à population

Literacy: ·       96.6% literacy ·       62.8% literacy
Culture differences: ·       The Philippines is a very similar culture to western culture which they can relate to while speaking with the customers. ·       India is quite different from western culture and it could make speaking with customers/clients quite difficult when they do not understand the differences in language, expressing personality, or expressions.

From the data in the chart above, it can be seen that India and the Philippines are in a tight race to be the best in the BPO industry, but in the end India is losing many customers to their competitors in the Philippines. Some of the statistics prove that the Philippines are better suited to support businesses around the world because of their language, government support, lower costs, and their ability to relate to western culture. Although India is still in the lead, the predictions say that India might be in second place very, very soon.