September 04, 2007

India Vs Philippines where to outsource

According to a senior analyst, local Philippines call centers are projected to top the 2005 earnings of their Indian counterparts. Philippine call center revenue grew by 300 percent over the last three years. An analyst from UK believes that the Philippines could take the lead if the Philippines will be able to boost its attractiveness as an outsourcing location.

But this could only happen, according to the foreign analysts, if the Philippines would improve its telecommunications and other basic infrastructure. Currently, the Philippines is below the median as a location. Secondly India, the favorite Outsourcing destination is now in higher level of outsourcing. It already has developed infrastructure, Skilled work force, best suitable for IT, Software, ITES, back office, Technical and knowledge process outsourcing.

Foreign investors said that the inflow of investment in Philippines information technology-enabled services could reach higher in five to ten years, with call centers being the key to this growth. If the government should also show its support in this sunrise industry by providing the necessary incentives and support to foreign investors, and international promotion or marketing.

While India already have opened its door for Outsourcing and upto 100% FDI (Foreign Direct Investments) like in Real State, Infrastructure, banking, insurance and upto 75% in Telecoms etc.
Companies who were outsourcing services to India previously are now enjoying its largest potential market as well which is expected to have faster growth rate for coming 10 years.

Naturally India will the prime destination to Investors, Outsources in coming years. Another point of note is foreign companies having local Indian partner companies are more successful due to their existing infrastructure, knowledge, understanding and presence in local market since long to establish their activities.


-Amit
Author has more then 5 years of experience in outsourcing.

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