Language constraints and competitive talent in other countries are resulting in India’s business process outsourcing (BPO) industry losing out to the Philippines, Canada and Poland. The $13.3-billion Philippines BPO industry grew 15.6% in 2013, compared with the 8.9% clocked by India's $20-billion BPO space. According to industry body Nascomm, in the last five years, India has lost about 10% market share to the rest of the world in the BPO space, most of which is in the voice contract segment. However, India is still the global leader when it comes to non-voice services. The Philippines’ voice industry stands at $8.5 billion while India’s is around $7.5 billion.
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 India’s 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