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Call Center Outsourcing Services of the Philippines: A Threat to India?

In an interview with Mr. Natarajan Chandrasekaran, the CEO and managing director of Tata Consultancy Services (TCS), he was asked if India’s IT-BPO industry is under threat from the Philippines. Mr. N. Chandra answered, “I don’t see any kind of threat.”

The interview question might have sprung from the fact that the quality of call center outsourcing Philippines offers has snatched the number one spot from India. Mr. N. Chandra, however, finished his answer with: “But at the same time, we need to invest more on talents.”

The Philippines, on the other hand, has long been investing on the talent pool of the country’s BPO industry through the established partnerships between the government and private organizations. For 2012, the Philippine government is allocating $11 million (Php 500 million) to fund remedial training programs for customer care, software and game development, and other sectors of call center outsourcing Philippines is further developing.

Also, TESDA (Technical Education and Skills Development Authority) and BPAP (Business Processing Association of the Philippines) launched a $580,000 (Php 25 million) program called TM+ (Trainer’s and Assessor’s Methodology Course). This “train the trainer” program provides trainers the needed skills to prepare the entrants of the outsourcing industry’s workforce.

Such efforts to align the country’s educational curricula with the standards expected in a call center workplace have greatly contributed to how the Philippines gained the preference of foreign businesses as they search for BPO (business process outsourcing) services providers. Philippines became the number one choice—with India second—for voice-based outsourcing services. Inversely, Philippines is second to India in non-voice-based BPO services.

The training methodologies jointly developed by government and private sectors are the country’s way of retaining its top spot and innovating its solutions to the evolving needs of the foreign clients. The industry of call center outsourcing Philippines has been priding on continues to gain international prominence—as a top-quality outsourcing services provider, an investment-worthy sector, and even as a competitor.