OUTSOURCING COMPETITION: INDIA VERSUS RP

  • April 28, 2011
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Some consider software outsourcing options for the reason of financial motives. But the benefits reach well further than the financials. A report according to 2004 Forrester states that, “offshore outsourcing remains an imperative in North American companies because of the cost and quality benefits it makes possible.”

Outsourcing is often made to lesser costs or focus on competencies. A related term that means transferring work from one country to another, typically overseas is Offshoring. Offshoring is similar to outsourcing when companies employ subcontractors in a foreign country, but differs when companies shift work to the same company in another country. Outsourcing became a popular exhortation in business and management during 1990s

Due to certain aspects such as cultural compatibility, proficiency in English, and neutral accents, Philippines is chosen as the base for their offshore customer service facilities by most foreign investors. In addition, racially, Filipinos are more westernized compared to their Asian neighbors.

Being a former American Colony, there is no difference between the Philippine Mercantile Laws and the Commercial code of U.S. and has similar requirements for Certified Public Accountants as well. These are concrete evidences of cultural similarities between RP and U.S.

In the recent years, the RP has become the offshore target of choice for call center outsourcing, specializing in customer support services.

Filipinos take pleasures in watching American shows, for that reason, Filipinos are familiar with the nuances of American English. Customers usually think that after dialing a 1-800 number, they are talking to a fellow American. Well, it is a big mistake.

India is an IT giant in the third world and is ranked as one of the top choices of U.S. companies for software outsourcing. But the Philippines – having the world’s second-largest English-speaking populations–is fast catching up to India and probably taking the crown out of India in the near future.

The most up-to-date “mantra” of India in the present day is the Business Process Outsourcing (BPO). Due to the fact that the current sources of revenue face slower growth today, software companies try new or fresh ways to have a larger amount of revenues.

Outsourcers choose call center facilities that are capable of handling calls not just from English-speaking nations but from all over the world. Because of that reason, The India should not be confident with their status today.

Source:
http://www.outsourcing.ph/outsource_call_center.htm

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