Outourced call center solutions moving further East according to report

The global trajectory for call center solutions continues to change perhaps more rapidly than had ever been forecasted. Only a decade after the concept of BPO (business process outsourcing) was established there looks to be a change at the head of the table overseas in the near future. According to a new study by Everest Research Institute, despite a much smaller population the Philippines will soon surpass India as the call center capital of the world. Offshoring and outsourcing on a global scale became recognized a cost saving practice in the 1990’s and accelerated in the following decade reach peak levels for English-speaking services between 2002 and 2005. Since that time the combination of slower economic growth, a near global recession, improved technologies and value from North American and European call centers has seen offshore outsourcing wane. In many cases selected business services have returned to the US and Canada.

What’s not in doubt is that global marketplace for call centers continues on a path of transition and change, customer service and value coupled with expertise and technical support continues to move the balance away from India when a decade ago their lead against all other markets seemed unbreakable. The report shows that call center revenues in the Philippines are expected to reach $5.7 billion in 2010, some $200 million higher than India. Consolidated BPO services are still led by India’s $12.4 billion versus the Philippines at $9.5 billion.

10 years ago the call center industry in the Philippines was fairly insignificant but less than 30,000 employer nationally in that capacity, in 2010 the figure is expected to reach about 350,000. While the common presumption is that much of the new business has arrived from North America and Europe the reality is a sizable percentage is transferred offshore work from India to the Philippines. What I find most significant about that is the reasons given for businesses to transfer to the Philippine market from other offshore choices.

The factors are rather telling but also detail the potential for call centers in the US and Canada for example to reacquire much of the market share that was lost in years gone by. Also worth pointing out is that each of the factors can be provided more than suitably by call centers right here. According to the study the growth has been a result of the country’s call center workforce having better English-speaking skills, the telecommunication network being superior to India, higher incentives for companies that have business there and “Filipinos affinity with the American culture”. The Philippine government has provided great tax incentive and subsidy to the growth of its call center industry allowing it to move from outside the top 10 to the number one position in just 12 years. What the factors above really outlined however is that many of the reasons for the eastward transition of call-center business can provide an opportunity for it to head right back to North America.

There is no reason to expect the migration of call-center business to now cease, more importantly some of the common reasons why a client will choose a particular call-center are clearly outlined in this report. It demonstrates the critical need to balance customer satisfaction with appropriate cost savings – the recipe that will continue to see a business move globally. As the economy continues to slowly find its feet the years ahead can provide a welcome opportunity for call center services here in Canada to regain much of the ground that had been lost.

To read the full report from Everest Research Institute please follow this link.