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Indian BPOs Waking up to the

Philippines Opportunity?

Presented By

Aditya

Tiwari

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History of Indian BPO Sector

• India’s tryst with processoutsourcing began in themid 1990s with GE settingup a Business Process

Outsourcing facility inGurgaon.

• Texas Instruments,American Express,

Swissair, British Airwaysand GE, who startedcaptive units in India. A BPO hub in DLF Cyber City

in Gurgaon,India

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Major Reasons Behind India's Success

in ITES/ BPO Industry• Abundant, skilled, English-speaking manpower, which is being harnessed even by

ITES hubs such as Singapore and Ireland.

• High-end telecom facilities and infrastructure which are on par with globalstandards.

• Better focus on maintaining quality and performance standards.• Fast turnaround times, and the ability to offer 24x7 services based

• on the country's unique geographic locations that allow for leveraging time zonedifferences.

• A friendly tax structure, which places the ITES/BPO industry on par with IT services

companies.

• Proactive and positive policy environment which encourages ITES/BPOinvestments and simplifies rules and procedures.

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BPO Scenario in Philippine

• In the mid-2000s the Philippines emerged as a

promising outsourcing destination for the

western world.

• By 2008, companies such as Sitel, Genpact,

and Citibank had already set up offices.

• Shifting local talent from India to fill up senior

and middle level management positions in the

Philippines.

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Reasons for moving from India

• The strength of the rupee and the weakeningdollar.

•  US economy slowing down and market forecast.

• The Indian government was unwilling to extendthe STPI (Software Technology Park of India) taxholiday for BPO units beyond 2009.

• The growing infrastructure and transportationcosts

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Reason to Choose Philippines

• World class infrastructure

• Ten-year tax breaks

• young, educated workforce, culture was much more

Americanized• Western culture and the conversational American-style

English that Philippine BPOs offered mattered more tomost Western companies.

•

According to research firm International DataCorporation (IDC), Philippines‘ capital Manila has

already emerged as the #2 among outsourcingdestinations in the Asia-Pacific, behind Bangalore.

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