The Future of Contact Center Outsourcing in India and the Philippines: Industry

The Future of Contact Center Outsourcing in India and the Philippines

Product Type: Market Research Report
Published by: Datamonitor
Published: February 2005
Product Code: R313-8270

Description

Introduction
Mainstream adoption of offshore call center outsourcing beckons. India continues to dominate the landscape but the Philippines threatens to poach some activity as its own market grows in strength. Almost quarter of a million new agent positions will be added in India & Philippines through 2009. The report explains why and provides strategic recommendations on how to succeed in the two markets.

Scope
Comprehensive forecasts for offshore outsourced, offshore in-house (captive) and domestic agent positions in India & the Philippines through 2009.
Breakdown of markets being served, processes being outsourced and vertical splits compared across both countries.
Analysis of the business drivers that will affect demand for outsourcing in each market, along with discussion of any obstacles to future success.
Actionable strategic recommendations for service providers to help grow revenues in these expanding markets and ride a new wave of outsourcing.
Highlights
Datamonitor forecasts that mainstream adoption of offshoring from the USA and UK lies just around the corner, which means the call center markets of India and the Philippines are set to see further expansion through 2009.

Datamonitor believes the balance between offshore in-house (captive) operations and offshore outsourced operations will tend to move in favor of the outsourcers over the next few years as firms that have locked in the value for their shareholders by moving offshore seek to further leverage the labor arbitrage argument.

As business process outsourcing becomes ever-more prolific, so the complexity of the work being undertaken by third parties evolves. Outsourcing providers are competing to run entire customer processes for their clients, rather than merely the voice-based call center part. There is a move towards transformational outsourcing amongst leading firms.

Reasons to Purchase
Understand why the number of offshore outsourced agent positions (APs) threaten to surpass offshore in-house (captive) seats in the next few years.
Learn how offshore call center markets in third world countries tend to mature and understand how to prepare your business for success.
Obtain Datamonitor's latest and most comprehensive market studies on the world's two most important offshore markets.

Table of Contents

TABLE OF CONTENTS

CHAPTER 1 EXECUTIVE SUMMARY 2

Introduction 2

Indian market update 2

Philippines market update 3

Offshore is maturing 4

Action points 5

CHAPTER 2 INTRODUCTION 12

Mainstream adoption of offshore beckons 12

CHAPTER 3 INDIAN MARKET UPDATE 15

Background 15

Drivers for offshoring to India 16

Labor arbitrage 16

Established call center market 18

Quality assurance and security 18

The labor pool 20

Obstacles to offshoring to India 20

Staff attrition 20

Public backlash in target markets 22

Distance from target markets 23

Middle management capabilities still an issue 24

Indian call center market forecasts 24

Definitions 24

Comprehensive market view 25

Offshore outsourcing in depth 26

Competitive landscape - the OSPs’ view 30

Outlook 31

CHAPTER 4 PHILIPPINES MARKET UPDATE 33

Background 33

Drivers for offshoring to the Philippines 35

Diversifying offshore portfolios 35

Large number of OSPs and MNCs already there 36

US military legacy and cultural affinity 36

Superior literacy rate 37

In-region language capabilities 38

Governmental support for the industry 38

Obstacles to offshoring to the Philippines 39

Limited real-estate and suitable locations 39

Political tension and environmental risks 40

Higher labor costs than in India 41

Long way away - again 42

Competitor to India? 42

The Philippines call center market forecasts 44

Comprehensive market view 44

Offshore outsourcing in depth 46

Competitive landscape - the OSPs’ view 51

Outlook 52

CHAPTER 5 OFFSHORE IS MATURING 53

Introduction 53

The offshore call center maturity model 54

Market consolidation in India 55

Moving beyond Tier 1 locations 57

Introduction 57

Definitions 57

Location Lists 58

Increasing seat utilization 59

Moving up the value chain 61

Vertical market developments 62

Quality control 63

Multisourcing and global delivery frameworks 65

Moving to new markets 65

Global delivery 65

Diversifying risk profiles 66

Final thought 66

CHAPTER 6 ACTION POINTS 67

Address agent attrition and the customer experience 67

Increase utilization of offshore resources 67

Establish a global delivery framework 68

Move towards transformational outsourcing 69

CHAPTER 7 APPENDIX 70

Research methodology 70

Further reading 70

SPP writing team 71

Report author 71

Report manager 71

How to contact experts in your industry 71

LIST OF TABLES

Table 1: Price per hour of Indian outsourced agents, 2004 17

Table 2: Distance from US & UK to Mumbai (Bombay), India 23

Table 3: Agent positions in India, 2004 - 2009 25

Table 4: Offshore outsourced APs and growth rates - India, 2004 - 2009 27

Table 5: Offshore outsourced call centers and growth rates - India, 2004 - 2009 28

Table 6: Population literacy rates in the Philippines and India 37

Table 7: Distance from US & UK to Manila, the Philippines 42

Table 8: Agent positions in the Philippines, 2004 - 2009 46

Table 9: Offshore outsourced APs and growth rates - the Philippines, 2004 - 2009 47

Table 10: Offshore outsourced call centers and growth rates - the Philippines, 2004 - 2009 48

Table 11: Offshore call center maturity model in 3rd world markets 55

Table 12: Tier 1 call center and BPO locations in India 58

Table 13: Tier 2 call center and BPO locations in India 58

Table 14: Tier 1 call center and BPO locations in the Philippines 59

Table 15: Tier 2 call center and BPO locations in the Philippines 59

LIST OF FIGURES

Figure 1: Comparison of offshore outsourcing process work in India and the Philippines 3

Figure 2: Map of India 15

Figure 3: Agent positions in India, 2004 - 2009 26

Figure 4: Offshore outsourced APs and growth rates - India, 2004 - 2009 27

Figure 5: Demand for offshore outsourcing in India, 2004 29

Figure 6: Split of India’s offshore outsourced APs by activity, 2004 30

Figure 7: Respondents’ most frequent competitors, India 2004 31

Figure 8: Map of the Philippines 34

Figure 9: Cities in the Metro Manila area 40

Figure 10: Comparison of offshore outsourcing process work in India and the Philippines 43

Figure 11: Agent positions in the Philippines, 2004 - 2009 45

Figure 12: Offshore outsourced APs and growth rates - the Philippines, 2004 - 2009 47

Figure 13: Demand for offshore outsourcing in the Philippines, 2004 49

Figure 14: Split of the Philippines’ offshore outsourced APs by activity, 2004 50

Figure 15: Respondents’ most frequent competitors, the Philippines, 2004 51

Figure 16: Most cited obstacles to offshore outsourcing 53

Figure 17: Indian and Filipino outsourced APs by vertical, 2004 63

Ordering and More Information

Price and Delivery Options

MindBranch has been the leading provider of industry and investment research from more than 550 independent research firms since 1992. With over 90,000 market research reports, MindBranch is your trusted source of competitive business intelligence.