Indian BPOs Waking Up to the Philippines Opportunity? - ICMR Case Studies and Management Resources

Details

Case Code : CLBS105
Publication date : 2009
Subject : Business Strategy
Industry : -
Length : 03 Pages
Price : Rs. 100

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Key words:

Outsourcing, BPO, ITES, Business Process Outsourcing, Philippines, Manila, Bangalore, STPI tax holiday, Genpact, Sitel

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Abstract:

After experiencing booming growth for close to a decade, the Information Technology Enabled Services/Business Process Outsourcing (ITES/BPO) industry in India was facing some problems due to a combination of factors. With the STPI tax holiday coming to an end in 2009 and the industry struggling due to the rupee rise against the dollar, ITES/BPO companies were waking up to the opportunities offered by the Philippines. Manila had begun to be touted as the next Bangalore, and the Philippines seemed to be a more attractive option due to its better infrastructure and lower costs.

Introduction

Since the mid-1990s, Business Process Outsourcing (BPO) firms have been one of the largest job creators in India, redefining pay scales and the work environment for many young Indians.

The sector witnessed a flurry of activity in 2004-05, with many multinational companies (MNCs) and Indian companies increasing operations and therefore, their hiring numbers. A number of mergers and acquisitions within the sector also signified maturity and consolidation for the industry. The number of captive and third party service providers added up to about 400 companies in the Indian BPO sector. According to industry experts, an educated, young and English speaking population and the cheaper bandwidth were the key factors behind this growth...

Indian BPOs Waking Up to the Philippines Opportunity?*