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, BT and Accenture

The future is now, or at least it is coming at us fast in the Contact Center Solutions Community, and there are two great ways to be part of the industry buzz as to what is unlikely to unfold in 2015. The first is to attend ITEXPO East, January 27-30, 2014 at the Miami Beach Convention center. This is a great opportunity to be warm and more to the point, hear, see and discuss contact center issues in person with peers and subject matter experts. [ Read More ]
01/17/2015

Customer Experience: The Last True Differentiator

In Ernst & Young's Global Consumer Banking Survey 2014, customers chose "the way I am treated" as the second most important reason for trusting their banking provider, just behind the understandably important "financial stability" of their bank. Customer experience was also cited as the most common reason for opening and closing accounts, more important than fees, rates, locations or convenience. Approximately 40 percent of customers planned to open or close an account in 2014. This means banks … [ Read More ]
01/16/2015

Digital Is Driving Businesses to Offer Personal and Intuitive Customer Experiences says Accenture Report

The preoccupation with improving the customer experience (CX) by C-levels around the world has been a trend for several years. In fact, the fastest growing C-level position is Customer Experience Management Officer (CEMO) or some variation on the title. And, as CX becomes ever more important as the means to provide differentiated value, delighting existing customers and for obtaining and keeping new ones, the preoccupation will not only grow more intense in 2015, but so will the investments in t… [ Read More ]
01/16/2015

BT Launches New Personalized Video Message Service

When it comes to contact center out-reach there are two trends that everyone needs to literally and figuratively keep an eye on in 2015. They are "personalization" and "video." And, while the first may seem obvious since the goal of marketers is to make customers and prospects feel appreciated with tailored messages uniquely for them, the use of video on the outbound side of things is after many years becoming something more than a novelty. [ Read More ]
01/15/2015