The Philippines has emerged as a global outsourcing leader, second only to India.
With global analysts forecasting an upward trajectory of business process outsourcing (BPO) and knowledge process outsourcing (KPO), both countries are heavily competing for inbound revenue, with India maintaining a dominant lead.
Both The Philippines and India have commercial strengths and weaknesses.
Outsourcing is based on tapping into a proficient skill pool and expanding manpower at the fraction of local market costs.
The Philippines and India both produce large numbers of English and multilingual college graduates every year. Also both countries implement investor-friendly laws, creating special economic zones where foreign companies can establish offshore operations. India’s history in outsourcing and large number of IT graduates is highly specialized in information technology, with its government building new infrastructure and developing Software Technology Parks to accommodate foreign client needs.
With improved infrastructure and investor-friendly laws and taxes for BPO and KPO companies, India’s outsourcing future remains promising. The Philippines, on the other hand, specializes in customer service and other knowledge processes like content creation as well as front and back office support. Characteristically, Filipinos are naturally helpful and polite, proving valuable in customer care and tech support roles. The country has a high affinity and connection to Western cultures, English is a primary language plus government endorsed special economic zones for foreign investors.
Both India and the Philippines have their weaknesses. India’s improved infrastructure came at a price and its labor costs are higher now. The Philippines is less proficient than its counterpart in high-level IT. The choice between these two countries lies predominantly on core company requirements, budget as well as commercial and brand synergies, particularly with customer service and dialogue roles.