Contact Center Solutions Featured Article

Philippines Proving to be Strong Competitor in Global Contact Center Industry

November 06, 2008

As the U.S. economy continues to experience its current turmoil, industry segments in other countries are reaping the benefits. With an increasing focus on reducing costs associated with supporting customers, many companies are renewing their focus to offshore investments.

The Philippines has been a point of interest for some time as it continues to offer significant cost savings, a skilled and educated labor base and progressive infrastructure that continues to support IT investment.

As the global contact center industry continues to be highly fragmented and extremely competitive, outsourced contact center services and solutions priced to attract overseas investors will continue to flourish.

According to the SGV Industry Bulletin-BPO Edition, BPO has been one of the fastest growing sectors in the Philippines in the past seven years. Revenues are projected to reach $12.2 billion by 2012, showing a five-year compounded annual growth rate of 38 percent. The bulk of this amount is expected to be accounted for by contact centers.

Although the country is showing strong performance and strong projections, the Philippine market share of the total global industry was only 3 percent in 2005. The country’s closest competitor is India, which showed a market share of nearly 8 percent in the same year.

The Philippines is considered by some to be on a strong path for gaining as much ground as India already has in this space. While such projections are based largely on recent trends in India of rising wages, high attrition costs and issues relating to the proficiency of language, these factors alone will not take all business away from India.

If looking at UN estimates comparing the two countries, India has 40 million fluent English speakers, which is roughly 4 percent of their population. The Philippines claims 60 million fluent English speakers, which is roughly 75 percent of the population, putting the Philippines in a stronger position if considering English fluency alone.

To better understand the difference, the dominance of English in the Philippines indicates that Filipinos think in English, unlike most of their Indian counterparts. It is this tendency that helps the country to achieve the highest standard of English in Asia.

Given that it is a significant strength and the rising global opportunity, it is unlikely that competing countries will maintain the gap in English proficiency and instead will redirect their efforts with a renewed focus on education.

The global contact center market is still rapidly growing, creating significant dynamics both in the U.S. and abroad. While the current economic situation is certainly driving decisions, it is the reaction of the customer that will have the most impact.
 

Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan's articles, please visit her columnist page.

Edited by Tim Gray

Article comments powered by Disqus

Related Contact Center Solutions Articles

Contact Center Solutions Week in Review: Interactive Intelligence, Aspect Software and Nice Systems

What an unusual week in the Contact Center Solutions Community. I never thought I would use the word "war" in an article for the community, but interestingly in different context I ended up using it not once but twice. [ Read More ]
11/22/2014

Aspect Software Declares War in Workforce Optimization Market

We may be closing in on the holiday season and a time of "good cheer," but reality is that competition in business is a 24/7/365 affair. And, depending on whether you are a competitor or possible customer, it looks like this holiday season thanks to a new initiative by customer experience solutions provider Aspect Software you are either looking at a possible lump of coal in you X-mas stocking or a valuable present. The reason is Aspect has dropped the gloves in the hotly contested Workforce Opt… [ Read More ]
11/21/2014

Ozonetel Integrates CloudAgent with Zoho CRM

A big part of improving the customer experience, regardless of whether you are an enterprise or a service provider, is breaking down the silos of customer information that exist inside an organization. Having a full view of the customer is important to customer lifecycle management and hence the overall customer experience. And, one of the big places to look for enhancing visibility into all things customer related is obviously tight integration with various capabilities with customer relationsh… [ Read More ]
11/21/2014

LiveVox Data Center to Bring Cloud Contact Center Capabilities to Canada

As financial results from various contact center and unified communications (UC) solutions providers continue to flow in for this quarter two things are becoming increasingly clear. First, is that those seeking to upgrade their customer experience capabilities are accelerating the adoption of the cloud and hybrid solutions as their preferred path. Second, is that North America continues to be the hotbed of this with not just the large U.S. market as a target of opportunity, but also the vibrant … [ Read More ]
11/21/2014