Philippines Surpassed India as the World's Call Center Capital

Good news then!

Philippines has beaten India in call center industry.

The Southeast Asian country has a lively BPO industry with competitive workforce. It has a large pool of manpower mostly tertiary educated to gain entry in the call center companies sprouting in the Metropolitan centers of Manila and Cebu.

Manila and Cebu City are distinguished developed BPO centers in the world. But other call center companies, mostly offshore firms, are settled in other cities outside from the big metropolitan cities in the Philippines. Convergys and Aegis People Support are among the large BPO employers hiring thousands of applicants to fill up the increasing demand for telemarketers and customer sales reps. Aside from the Cebu and Manila, these companies have branches in other cities in the Philippines.

The unprecedented growth rate of BPO industry in the Philippines is promising. It is foreseen that by 2015, Philippines will replace India in the BPO arena. But recent report shows that the Philippines can gain $25 billion in 2015. This amount is lower compared to India’s over $40 billion value in BPO as recently.

Philippines still has a long way to go before beating India. The odd thing here now is that the India’s giant Tata Group now establishes its first BPO center in Southeast Asia in Taguig City, Philippines. This shows though that Philippines has a very bright future in the BPO sector as evidenced to its newfound recognition.

To compare figures in terms of revenue, the island-nation employs 15,000 for the call center industry in contrast to 13,000 of India. Moreover, as of the end of October of this year, Philippines has gained $5.5 billion in revenue opposed to $5.3 billion of India. As of year end, Philippines is expected to generate $5.8 billion in revenues while India, $5.5 billion for the call center industry.

It is to be noted though that the call center industry forms part of the larger BPO in wide-scale. Offshoring and outsourcing became a hot business trend worldwide because of its cost-saving advantage.

The total BPO industry has a value of $450 billion for the worldwide economy based on a study by McKinsey & Company.  Philippines has gained $ 6.8 billion  in 2008 from BPO sector but lower compared to India’s $11 billion.

With the Philippines surpassing India in the call center arena, it seems that another David-and-Goliath scenario occurred. However, India still tops the BPO sector. But that won’t stop the Philippines from celebrating the coveted position as the No.1 in the call center arena.