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BPO firms leave Indian soil



New Delhi: Currently reeling under the pressure of being relocated to tier II locations, BPO employees in India are to take yet another jolt. BPO firms, who are known to be India's big job creators, are now shifting employees from this country to emerging outsourcing destinations like the Philippines, reported The Economic Times.

However, there is hope for Indians as domestic BPOs and MNCs are relying on Indian talent for their Philippines operations. The major firms that are keen on shifting jobs from India include Genpact, Sitel, Intelenet, Citibank and Accenture.


According to Raman Roy, MD, Quatrro BPO Solutions, "The Philippines has talent that is comparable or superior to their Indian counterparts at the associate level, but there is a void at the middle and the senior management level. It's largely Indian executives who fill up this void at Indian, local and captive BPO firms in the Philippines."

A large English-speaking population, a slew of fiscal incentives and lower property rates are some of the factors that equip the Philippines to compete with India as an attractive outsourcing destination. Apart from the capital Manila, places like Cebu have also emerged as favourites for setting up call centers.

"I have lost five managers in the last one year to BPO companies in the Philippines. The local firms offer superior compensation packages to executives who have work experience with Indian BPO firms," says the head of a BPO firm, requesting anonymity.

According to Vibhav Dhawan, Managing Partner, Positive Moves Consulting, there is a significant movement of voice processes to emerging destinations like the Philippines and Eastern Europe. "Large MNCs, with presence in India, are expatriating a significant number of Indians to meet their talent needs in the short and long term in these new markets," he added.

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siliconindia news bureau



Reader’s comments

Comment 1: I would like to say that the driving force of Indian BPOs are also indians and as a normal indian, they also thinks of more profit and low cost. Afterall, all wants lower Break even Point to survive and consistency of business. Doesn't matter you are working in BPO but your Goal should be FIXED in a particular desired field. Don't think to make BPOs as your permanent career instinct. Just rap up GUYS! and start thinking about your GOAL. Because, CHANGING IS THE RULE OF NATURE.
Posted by : KP - Wednesday, July 30, 2008

Comment 2: East or West India is the Best, I can trust the talent of Indians as equal to any other country, We are special and different and we will continue to offer the best talent & brains that one cannot find elsewhere!!! Jai Hind!!!
Posted by : Neil G - Thursday, July 24, 2008

Comment 3: It is a wonder to me why all these years these BPO firms were not eyeing on Phillippines with the fact that already many in Phillipines are largely English speaking.
Also, the infrastructures were also conducive to BPO establishments over there as compared to India.

M.SRINATH.
Posted by : M.Srinath - Wednesday, July 23, 2008

Comment 4: Well you can't compete when:
1) India infrastucture does not compare to philipines
2) Land prices are cheaper

but don't worry it will all even out in the end.

By the Way a response to:
Comment 2: IB KI HOGA
Posted by : akki - Wednesday, July 23, 2008
Jumping from one company to another is not an "indian formula" in ITES it happens in ever country and will happen in phillipine as well, and then the jobs will go to South Africa :)!!!
Posted by : Vijay - Wednesday, July 23, 2008

Comment 5: Yes All companies are concentrating towards Philippines.we will have to pull up our socks guys. Regarding Quality they can train the people to get the expected quality
Posted by : suri - Wednesday, July 23, 2008

Comment 6: IB KI HOGA
Posted by : akki - Wednesday, July 23, 2008

Comment 7: Well, it's high people in IT & ITeS sectors realise the importance of staying loyal to the organisation and stop hopping. I do not know how many of 300,000 strong Indian BPO workforce is reading this however it is imminent that their days are getting numbered.

Instead of cribbing about growth and money, it's high time that people stick to basics, like """""Job Security"""""". I remember an HR Head of leading ITeS organisation scoffing at the term some time back, however it seems I am having the last laugh.

Remember the SE Asians are better in terms of Quality and when it comes to Hard work, they are the best. We Indians are only good at SHITTING & DIRTYING as rightly emphasized by """Socil""".

All is not lost yet, this is just the beginning. Let's pull up our socks, get down to basics, and understand a simple fact that WORK is not FUN. I am sure all of you understand what I am saying.

So all of you out there who are listening and who have their brains at the right places, (some have it in a place where it get's emptied the first thing in the morning) stay calm and not get scared. If you are good, nobody can stop you from winning.

CHEEERS


Posted by : Rohit - Wednesday, July 23, 2008

Comment 8: Sorry i cannot accept it.... wot filipinos know? Quality of work is very poor among them and i dont think BPO industry will be successful in philipines if we dont take the part " cost cutting".
Posted by : vivek sankar - Wednesday, July 23, 2008

Comment 9: Utter crap.. pilipinos can only do cooking cutting and cleaning .. ok add sailing
Posted by : Socil - Wednesday, July 23, 2008

Comment 10: hey all you guys complaining about this, just realize that what happened to US jobs when India came into the picture is happening now to Indian jobs when the philippines has come into the picture, Its a cycle, and phillippines will be in India's shoes a decade from now when a new 'low cost' country comes into picture!

bottom line: STOP RELIEING ON BPO EASY MONEY! GROW SOME REAL TALENT!!!
Posted by : pramod - Wednesday, July 23, 2008

Comment 11: Indian BPO companies know this is coming and it is no surprise. Indina BPOs should be smarter and open subsidiaries in low cost countries. They should then try to retain customers by splitting processes between low cost countries and India. India office should become a Project Management office nd also have QA functons. This can bring down the cost and also help retain senior executives.
Posted by : Saranadhi - Wednesday, July 23, 2008

Comment 12: At last all the free lunches and the perks to keep the Bpo employees in good humour would vanish !!! welcome back to reality
Posted by : Pravin Narayan - Tuesday, July 22, 2008

Comment 13: When you are at a receiving end you get to take what is given. It shows about much talked about India's so called dominance in ITeS is fading at last. Thanks to the system as well as the top managements be it in government agencies, nodal agencies as well as Indian MNC's and Private Sector gaint's related to this industry, as profits are the sole driver with competitive edge being derived from price cuts you don;t get good finished products. Globally also companies are more on cost cutting and saving mode with less focus on quality and time measurement.
Posted by : Imani - Tuesday, July 22, 2008

Comment 14: Now, I think we should better migrate to countries like Philipines, China to survive in BPO
Posted by : Bhaskar - Tuesday, July 22, 2008

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