The Future BPO Hotspot
Interesting article that I read from Wall Street this morning. In the wake of what seems to be a global slowdown, the Philippines’ economy is redeemed, aside of course from the ever-reliable remittances of overseas Filipino workers, by the growth of BPO companies that greatly addresses major labor issues (employment) in our country. And it’s good to know that it’s the FILIPINO SKILL that they are actually banking on, and not solely the cheaper labor that we are currently priced at, as compared to India.
For India's Tech Titans,
Growth Is Waning
By NIRAJ SHETH
August 20, 2008; Page A1
NEW DELHI -- India's information-technology industry, the engine of the nation's economic resurgence, is losing steam.
A decade ago, a host of Indian companies -- led by Infosys Technologies Ltd., Wipro Ltd. and Tata Consultancy Services Ltd. -- shot to global prominence by helping fix the "millennium bug" that threatened to crash many of the world's computers at the end of 1999. Often growing at 40% a year or more since, they quickly helped build a global tech-outsourcing industry that has changed how the world does business and how it views India.
Now that growth is slowing sharply. The credit crunch and spending slowdown in the U.S. are hurting the companies' biggest market, while a cheaper dollar shrinks their profits. Longer-term problems are surfacing. Competition is rising from other low-cost nations, ranging from Eastern Europe to the Philippines and Vietnam. And India's own success has raised labor expenses, cutting into the companies' low-cost advantage just as their revenue growth is slowing.
…India's wage inflation, currency appreciation and high labor turnover have also started pushing tech work to smaller competitors in Eastern Europe and the Philippines that don't have the same problems. For example, Siemens AG has moved its in-house customer-service centers away from India. Over the past two years, Siemens has hired 1,500 workers to staff a customer center in Manila, where the company says the spoken English is closer to the American dialect of its U.S. customers. In the Philippines, Siemens says it has a 2.5% monthly turnover rate, compared with the 20% turnover it had in its India call center…
http://online.wsj.com/article/SB121919218719255181.html
For India's Tech Titans,
Growth Is Waning
By NIRAJ SHETH
August 20, 2008; Page A1
NEW DELHI -- India's information-technology industry, the engine of the nation's economic resurgence, is losing steam.
A decade ago, a host of Indian companies -- led by Infosys Technologies Ltd., Wipro Ltd. and Tata Consultancy Services Ltd. -- shot to global prominence by helping fix the "millennium bug" that threatened to crash many of the world's computers at the end of 1999. Often growing at 40% a year or more since, they quickly helped build a global tech-outsourcing industry that has changed how the world does business and how it views India.
Now that growth is slowing sharply. The credit crunch and spending slowdown in the U.S. are hurting the companies' biggest market, while a cheaper dollar shrinks their profits. Longer-term problems are surfacing. Competition is rising from other low-cost nations, ranging from Eastern Europe to the Philippines and Vietnam. And India's own success has raised labor expenses, cutting into the companies' low-cost advantage just as their revenue growth is slowing.
…India's wage inflation, currency appreciation and high labor turnover have also started pushing tech work to smaller competitors in Eastern Europe and the Philippines that don't have the same problems. For example, Siemens AG has moved its in-house customer-service centers away from India. Over the past two years, Siemens has hired 1,500 workers to staff a customer center in Manila, where the company says the spoken English is closer to the American dialect of its U.S. customers. In the Philippines, Siemens says it has a 2.5% monthly turnover rate, compared with the 20% turnover it had in its India call center…
http://online.wsj.com/article/SB121919218719255181.html
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2 comments:
that is true. siemens is just one of the companies that is moving its call center operations to the philippines. they say that operations are more expensive in the philippines, but they are willing to take a shot. aside from the accent, mas malapit daw sa kultura nila ang kultura natin, so mas maiintindihan ang customers.
Just proves how Filipinos are simply one of the best workers there are.
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