“Outsourcing has traditionally been one of the options by companies looking to trim costs and reconfigure business models,” says Shailen Gupta, an independent industry consultant who has worked with such companies as Sprint, Gartner, and Phase2Solutions. “[It] lets them focus on areas of competitive differentiation by moving non-core parts of a business to an outsourcing provider.” According to Gupta, with outsourcing, costs become variable instead of being a fixed one and business services are performed by providers that have mastered processes and technology.
Gupta further said that the wages are 80 percent lower for customer service representatives in the Philippines than their U.S. counterparts and many times employees have better educational qualifications. Jobs that can be moved to the Philippines range from lower-end inbound and outbound customer-contact services to higher-end technical support and value-added business processing.
India, the Philippines, and Ireland are mainly considered by many companies. “The global hotspot currently would be the Philippines, which has seen over 60 percent in growth last year,” says Anupam Govil, founder and CEO of Global Equations, an offshore advisory firm. “It has an edge over India because of its track record in customer service, language skills, and affinity.”
“The Philippines is a hot location for anything involving the English language, because customer interactions have to be conducted in strong English language skills.” says Bruce Rutherford, an international managing director of Jones Lang LaSalle. This nation also have populations with necessary or trainable cultural interaction skills. “One of our clients routinely trains for Philippine accents to sound exactly like American accents in only 11 weeks,” he says. “Not only that, they learn major U.S. headlines.”
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