Countries such as the Philippines, Malaysia and China in Asia, Egypt and Morocco in North Africa, Brazil, Mexico, Chile and Columbia in Latin America, and Poland and Ireland in Europe are emerging as attractive destinations for voice contracts.
India's challenges lies in the language front as, apart from English, the country doesn't have much talent to support services in German, French, Spanish, Portuguese and Nordic languages.
The Philippines, the second-largest destination for outsourcing, is emerging as a serious competitor and is relevant both for voice and non-voice services.
In fact, the Philippines voice industry overtook Indias last year in terms of revenue and full-time equivalent (FTE). Not only does it support English, but the quality of service is better than that of India, said Salil Dani, practice director, Global Sourcing, Everest Group.
Interestingly, the business process management (BPM) revenue per employee, which is the lowest for India, has risen across
On the other hand, Latin America is emerging as a preferred nearshore destination for IT and BPO services for the US due to its physical and cultural proximity to the US and the presence of a large multilingual population.
No geography competes with India when it comes to cost-efficiency and quality. Though the loss to other geographies is marginal, we have never lost any seat to a competing geography, added Sanjay Mehta, managing director, India, Teleperformance. The $3.02-billion Paris stock exchange-listed Teleperformance is world's largest contact centre company, with global operations spreading over 46 countries and employee strength of over 1.38 lakh.
The firm's voice business in India is almost 90% and it has centres in Costa Rica, the Dominican Republic and Columbia, besides 16,000 people in Brazil doing domestic BPO work.
European countries working in multi-lingual processes find Poland a good option for their medium-term operations involving up to 500 employees. However, not much work has moved away from India to Poland as these countries have a small talent pool. Moreover, India and the Philippines have scale, which no European location can provide, Dani added.
As for Brazil, the offshore market is small at around $0.65 billion because of the high cost of operations. The domestic BPO market is 10 times the size.
Those in the know say that clients have started choosing geographies based on the kind of services they offer. Hence, an investment banking platform may involve analytics being serviced out of Central Europe or India and customer care/voice from India if the offshoring component is high or from Latin America and the Philippines if it is low.
This is the reason why many BPOs are expanding in different geographies. They want to leverage the opportunities there, besides tapping the required talent pool, said an industry
Besides, outsourcing has also become a national issue in several developed countries, like the US and the UK, which are supporting the local BPO industry through various means. According to industry sources, the BPO industry in the UK employs 8 lakh British workers and is emerging as a vital part of the economy.
Customers also want a global delivery model and, interestingly, many Indian companies offer services from these competitive geographies. This means that business is not going away from the Indian industry, explained Sangeeta
Gupta, senior vice-president, Nasscom.