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India outsources call center work to the Philippines

Western powers in North America and Europe have long enjoyed the outsourcing of call centers to India, but could the outsourcing superpower start to ta...

Freddie Pierce
|Oct 17|magazine7 min read

Western powers in North America and Europe have long enjoyed the outsourcing of call centers to India, but could the outsourcing superpower start to take advantage of this overseas drive?

According to a report in the Washington Post, many call center operators in India are setting up their own overseas operations. These Indian companies have found lower costs without sacrificing infrastructure or government incentives in places like the Philippines and Malaysia.

“India absolutely cannot take the voice-based call-center business for granted anymore,” President of Corporate Affairs for Tech Mahindra Sujit Bakshi told the Washington Post.  

Rising salaries and overall inflation in India have pushed the outsourcing superpower away from call-center work and more toward higher-end outsourcing jobs. India remains the best location for IT support and other higher-end outsourcing functions.

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Some Indian companies have tried to combat rising labor costs by hiring cheaper workers from more rural locations in their home country, or by switching to high-end back office work.

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According to the National Association of Software and Service Companies, in the past three years, 13 Indian call-center companies have set up large outsourcing operations in the Philippines. Indian outsourcing companies are taking advantage of an English-speaking, cheap labor force.

“The growth in the Philippines is being driven, to a large extent, by Indian outsourcing companies that are setting up operations there,” the association’s senior vice president Sangeeta Gupta told the Washington Post.

Analysts comment that cultures in the Philippines and the United States are similar, which make call center outsourcing even more attractive there. Indonesia and Vietnam are other countries with large English-speaking populations that could witness similar outsourcing growth in the coming years.

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