This IT revolution and easy access of internet has made the world business very challenging and revolutionary. India is considered to be back office of the world and internet is not a rare phenomenon here. Companies outsourced there work to India as a preferred location, but now other locations also are providing the back-office space to the companies.
Philippines are one of the many countries which are giving India a tough competition in terms of getting the back office business. As per the reports about 250 companies have set up there offices in Philippines. But the major part of there outsourcing shares comes from Voice based services. It is claimed that there accent is very close to the US accent, even though they are in Asia. So, the question comes is – Is Philippines the new BPO home? We will try to answer this below.
Voice Accent – India is a multilingual country with Hindi as its National Language. In India, majority of people know, speak and write more than 1 Language. English is also a language which is known to a vast population. The more than 1 language edge enables the Indian population to be flexible with learning the different accents and foreign languages. Philippines accent is close to American accent and about 20,000 people speak Spanish also, but the Spanish speaking population is aged. As compared to Indian neutral accent, people in Philippines have an accent which is similar to Americans but due to this high resemblance, it’s difficult for them to adopt or learn to any other accent as all business is not from US. On the other hand, India produces around 20,000 foreign language speaking professionals every year.
Infrastructure Base – India is 7th largest country in the world in terms of land area while Philippines stand at 72nd position. In India, there are many locations where industries and offices can be set-up and abundance of Manpower is also there as India holds the second largest population of this world while Philippines has got 72nd rank in world population. So India is a better choice in this regard also. India is 33rd in population density while Philippines are on 32nd position, so India has more space for industries and offices.
Climate – Climate wise India has got a mixed climate. It has got Himalayas in the North and East, desert in west while ocean in the south. So, it’s a pretty diverse and non-monotonous climate. While Philippines is a collection of 7,107 islands in the Pacific Ocean, and to add it’s mostly a mountainous region which is covered with tropical forest and volcanic mountains. The country also lies within the typhoon belt of the Western Pacific and about 19 typhoons strike per year. So, India encounters lesser number of natural calamities every year.
Literacy – In Literacy, India stands at 60.3% while its youth literacy rate is 71.3%. Literacy was 92.6% in 2003, which is more than of India. If calculated in terms of numbers, Philippines has a literate population of 82,020,092 while India has 619,290,194 so in this also, India shows an edge. Moreover UNESCO and India have set the target together for 2015 for a 100% literate nation.
GDP – Per capita GDP of India is $977 (132nd) while for Philippines it is $5,365.287(99th) which means that Philippines may prove to be expensive in terms of cost. And due to higher abundance of skilled talent, India proves to be a cheaper generation.
Economy – Indian economy has been repeatedly rated by the many economics experts as one of the most promising and growing economy with good amount of stability while Philippines is still to be considered. So, India is a set market with lesser number of risks.
VISA – Indian VISA rules are easy and flexible. For foreigners to come and work with a work visa is not a tough job. Philippines VISA rules are not that flexible. Indian hospitality is world known with quite a good number of tourist locations as well.
These are few of the points on which it can be judged which is a preferred outsourcing location, but this series will continue…
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