Outsourcing: Philippines Vs. India

Summary

Ike Stratton, CEO of Staff Virtual, discusses why businesses are increasingly choosing the Philippines over India for outsourcing. He highlights the Philippines' strong English proficiency, Western cultural alignment, and better soft skills as key advantages. The video also points out the Philippines' booming BPO industry, supported by government initiatives, and its superior IT infrastructure, making it an ideal destination for call centers and customer-centric tasks.

Takeaways

• 🌏 The Philippines is increasingly chosen over India for outsourcing due to cultural and language advantages.
• 🗣️ Filipinos are generally better at soft skills and English proficiency compared to Indians, making them more suitable for customer-facing roles.
• 🏢 India had an early advantage in the outsourcing industry, but the accent of Indian professionals can be a barrier for non-Indians.
• 🎓 The Philippines has a strong educational system that prepares graduates for the business process outsourcing industry.
• 💼 Filipinos are known for their work ethic and are often employed in roles requiring empathy and customer service, such as healthcare and hospitality.
• 🌟 The Philippine government strongly supports the business process outsourcing industry, making it a significant contributor to the economy.
• 📈 The Philippines is graduating a large number of applicants annually who are well-prepared for jobs in the outsourcing sector.
• 📞 Call centers are shifting from India to the Philippines, even Indian companies like Tata are relocating, due to better communication skills.
• 💡 The Philippines' westernized culture and neutral English accent provide a better cultural fit for Western businesses.
• 💼 Filipinos offer versatility in the workplace, capable of handling multiple roles and tasks, unlike Indians who may specialize in one area.
• 🔌 The Philippines has superior IT infrastructure, ensuring reliability and uptime for offshore operations.

Q & A

Why is the Philippines becoming an increasingly popular outsourcing destination compared to India?

The Philippines is favored due to its strong soft skills, better English proficiency, and a more neutral accent that is easier for non-Indians to understand.

What cultural differences does Ike Stratton highlight between India and the Philippines?

Ike Stratton points out that Indians are generally more technical, while Filipinos have superior soft skills and English language proficiency.

What is the historical context that has contributed to the Philippines having better English skills?

The Philippines was a U.S. colony for over 50 years, which has greatly influenced the culture and the people's English language abilities.

How does the level of westernization in the Philippines impact its attractiveness as an outsourcing destination?

The westernized culture in the Philippines, including familiarity with Hollywood movies and American slang, makes it a better cultural fit for Western businesses.

What is the term used to describe the Filipino's empathetic and caring nature in customer service?

The term used is 'Pusan binoy,' which signifies the Filipino heart that makes them exceptional in customer service roles.

Why is the work ethic of Filipino people considered advantageous in the outsourcing industry?

Filipinos are known for their strong work ethic, with a 'heart of gold,' making them excellent in roles requiring empathy, listening skills, and care.

How does the government support the business process outsourcing (BPO) industry in the Philippines?

The government in the Philippines strongly supports the BPO industry, recognizing it as a sunrise industry and the largest employer in the country, contributing significantly to the GDP.

What is the significance of the Philippines being the third largest English-speaking country in the world?

This status indicates the widespread English proficiency in the Philippines, which is crucial for effective communication in the global outsourcing market.

How does the Philippines' IT infrastructure compare to India's, and why is this important for outsourcing?

The Philippines has a more reliable IT infrastructure with less downtime, which is essential for maintaining uptime in offshore call centers and other IT-dependent services.

What is the term 'versatility' in the context of outsourcing, and why is it beneficial for businesses?

Versatility refers to the ability of Filipino workers to perform a variety of tasks and 'wear many hats,' making them valuable as generalists in roles such as virtual assistants.

Why are wages in India increasing at a faster rate than in the Philippines, and what does this mean for businesses?

Wages in India are rising quickly due to high demand and frequent salary raises, which can diminish the return on investment for businesses more rapidly than in the Philippines.