More Indian BPO firms join Philippines race

by Jamsheed Gandhi    May 16, 2011

Vishwanath Patil

Philippines continues to attract Indian back office firms to set up new centres, as they look for more stable workers to service their clients in the US.

Aditya Birla Minacs opened its second centre in Makati City in Philippines, which last year over took India as a leading call centre destination due to the nation’s closer affinity to American culture and lower attrition among workers than India.

The new centre of Aditya Birla Minacs will employ 600 people and plans to increase to 1000 over time servicing clients across telecom, technology and healthcare verticals. Early this month, Tech Mahindra signed a multi-million deal with a Philippine-based company to provide contact center support for sales and back office, customer care and technical support for their wireless post-paid, landline and broadband customers.

“Philippines is not only a key market for us, but also a strategic location from where we plan to service our global clients. We look forward to strengthening our presence in Philippines through this engagement,” the company’s President - Corporate Affairs and BPO, Sujit Baksi said.

The Philippines offers a similarly attractive business environment for international business support functions as India, but has not had the same labour cost increases as have occurred in various Indian ‘hot spots’ in recent years, IBM said in a report last year.

The back office industry in Philippines employs over half a million professionals and grew its revenue by 26% to $ 8.9 billion in 2010. Of this, more than 300,000 people working in call centers generated revenue of $ 6.1 billion. In contrast, the Indian BPO segment grew 14% to reach $ 14.1 billion to the year ended March.

Last year, Tata Consultancy Services Ltd, India’s largest technology services firm set up a centre in Philippines, joining the band of Indian firms expanding in the country to service global clients. WNS, Infosys BPO, Wipro, Hinduja TMT and Genpact are among other Indian firms to have operations in Philippines.

“The Philippines has emerged as a strong hub due to its capable and varied talent pool, close cultural and business affinity with North America, state-of-the-art infrastructure and active government support.” Milind Godbole, President – Asia Pacific, Aditya Birla Minacs said.