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8/12/2019 Moving of Indian BPO to Philippines
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Indian BPOs Waking up to the
Philippines Opportunity?
Presented By
Aditya
Tiwari
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History of Indian BPO Sector
• India’s tryst with processoutsourcing began in themid 1990s with GE settingup a Business Process
Outsourcing facility inGurgaon.
• Texas Instruments,American Express,
Swissair, British Airwaysand GE, who startedcaptive units in India. A BPO hub in DLF Cyber City
in Gurgaon,India
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Major Reasons Behind India's Success
in ITES/ BPO Industry• Abundant, skilled, English-speaking manpower, which is being harnessed even by
ITES hubs such as Singapore and Ireland.
• High-end telecom facilities and infrastructure which are on par with globalstandards.
• Better focus on maintaining quality and performance standards.• Fast turnaround times, and the ability to offer 24x7 services based
• on the country's unique geographic locations that allow for leveraging time zonedifferences.
• A friendly tax structure, which places the ITES/BPO industry on par with IT services
companies.
• Proactive and positive policy environment which encourages ITES/BPOinvestments and simplifies rules and procedures.
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BPO Scenario in Philippine
• In the mid-2000s the Philippines emerged as a
promising outsourcing destination for the
western world.
• By 2008, companies such as Sitel, Genpact,
and Citibank had already set up offices.
• Shifting local talent from India to fill up senior
and middle level management positions in the
Philippines.
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Reasons for moving from India
• The strength of the rupee and the weakeningdollar.
• US economy slowing down and market forecast.
• The Indian government was unwilling to extendthe STPI (Software Technology Park of India) taxholiday for BPO units beyond 2009.
• The growing infrastructure and transportationcosts
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Reason to Choose Philippines
• World class infrastructure
• Ten-year tax breaks
• young, educated workforce, culture was much more
Americanized• Western culture and the conversational American-style
English that Philippine BPOs offered mattered more tomost Western companies.
•
According to research firm International DataCorporation (IDC), Philippines‘ capital Manila has
already emerged as the #2 among outsourcingdestinations in the Asia-Pacific, behind Bangalore.
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