BPO Services: India VS Philippines

BPO Services: India VS Philippines

India wins hands down in the battle of BPO service providers from all over the globe, the second closest might be Philippines which recently became a second favorite destination for the international companies for one simple reason being that more natural English accent spoken by Filipinos. Other competitors are South Africa, Poland, Morocco, Malaysia etc.

India lost its nearly 10% of BPO work to the Philippines in the last few years but India still remains the top priority for outsourcing to global companies. Where 38 million population of the Philippines is in the age group of 25-54, India have 484 million people in the same age group and a large portion of people are working in the BPO sector, this is why the quality and quantity of work is of top level.

Advantages of BPOs in India:

There are several advantages of outsourcing projects to India-

Cost: One of the main reasons for outsourcing business processes to countries in different geographical location is the cost. Companies reduce their operational cost by substantially by outsourcing. Cost is further divided into sub-categories for labor, infrastructure and currency exchange.

The cost advantage of offshoring to India is so significant, hiring a call center service in India costs less than 7,500 USD compared to 19,000 USD in US and 17,000 USD in Australia. Also, the average salary in India is 2,400 USD compared to 2,900 USD in Philippines. Hence, the cost of hiring professionals is also low.

Labor: Cost of the labor is low in India and education level is on the constant rise. More and more people are completing schooling, graduation and post-graduation in India. The education system in India is based on the British education system. So, all the subjects are taught in English. Hence, the majority of population in metro cities speaks and writes English well.

Other: Other factors are business and political risks, geographical location i.e. the time zone of the country, data security and IPR issues.