Outsourcing: Philippines Vs. India
Summary
TLDRIke 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
- đ The Philippines is increasingly chosen over India for outsourcing due to cultural and language advantages.
- đŁïž Filipinos are generally better at soft skills and English proficiency compared to Indians, making them more suitable for customer-facing roles.
- đą India had an early advantage in the outsourcing industry, but the accent of Indian professionals can be a barrier for non-Indians.
- đ The Philippines has a strong educational system that prepares graduates for the business process outsourcing industry.
- đŒ Filipinos are known for their work ethic and are often employed in roles requiring empathy and customer service, such as healthcare and hospitality.
- đ The Philippine government strongly supports the business process outsourcing industry, making it a significant contributor to the economy.
- đ The Philippines is graduating a large number of applicants annually who are well-prepared for jobs in the outsourcing sector.
- đ Call centers are shifting from India to the Philippines, even Indian companies like Tata are relocating, due to better communication skills.
- đĄ The Philippines' westernized culture and neutral English accent provide a better cultural fit for Western businesses.
- đŒ Filipinos offer versatility in the workplace, capable of handling multiple roles and tasks, unlike Indians who may specialize in one area.
- đ 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.
Outlines
đ Outsourcing Shift: Philippines vs. India
Ike Stratton, CEO of Staff Virtual, discusses the trend of businesses choosing the Philippines over India for outsourcing. He emphasizes the cultural and language advantages of the Philippines, highlighting Filipinos' superior soft skills and English proficiency. Despite India's first-mover advantage in the 1990s, the difficulty of understanding Indian accents has led to a backlash. The Philippines, being a former U.S. colony, has a more neutral and legible accent, making it an attractive outsourcing destination. Additionally, Filipinos' westernized culture and familiarity with American slang make them a better cultural fit for businesses.
đ Philippines' Outsourcing Boom: Education & Infrastructure
The script outlines the reasons behind the Philippines' booming business process outsourcing (BPO) industry. The country's educational system is tailored to produce graduates ready for the BPO sector, with half a million potential employees graduating annually. A significant shift from India to the Philippines for call center services is noted, with even Indian companies like Tata moving their operations. The Filipinos' excellent English and lack of a strong accent are emphasized, as is the government's strong support for the BPO industry, which has become a major economic contributor. The Philippines is also described as more westernized than other Asian countries, with a preference for American culture and lifestyle, and is strategically located between North America and Asia.
đŒ Philippines' Advantages in Versatility and IT Infrastructure
The final paragraph focuses on the versatility of Filipino workers and the superior IT infrastructure in the Philippines compared to India. Filipinos are praised for their ability to take on multiple roles within a company, making them ideal for positions like virtual assistants. The country's IT infrastructure is described as reliable and on par with Western standards, ensuring minimal downtime for offshore operations. The video concludes by emphasizing the Philippines' attractiveness as an outsourcing destination, especially for customer-centric tasks, due to its combination of cultural alignment, language proficiency, and robust infrastructure.
Mindmap
Keywords
đĄOutsourcing
đĄSoft Skills
đĄAccent
đĄCultural Fit
đĄWork Ethic
đĄBusiness Process Outsourcing (BPO)
đĄWesternized
đĄGovernment Support
đĄCurriculum
đĄCall Center
đĄIT Infrastructure
Highlights
Businesses are increasingly choosing the Philippines over India for outsourcing due to better soft skills and English proficiency among Filipinos.
Indians are generally more technical, but Filipinos excel in soft skills and have a more neutral and legible accent.
The Philippines, being a former U.S. colony, has a strong English-speaking culture, ranking as the third largest English-speaking country.
Cultural fit is crucial for business outsourcing, with Filipinos being more westernized and familiar with Western media and slang.
Filipinos are recognized for their work ethic, often taking on roles in healthcare, customer service, and hospitality.
The Philippine government strongly supports the BPO industry, making it a significant contributor to the country's GDP.
The Philippines has a large pool of BPO-ready graduates due to tailored education curriculums in colleges and universities.
There is a noticeable shift from India to the Philippines for call center services, including Indian companies moving their operations.
Accent clarity is critical for call centers, where the Filipino accent is more easily understood by a global audience.
The Philippines is described as not being 'as Asian' due to its Westernized culture and history of colonization.
Wage increases in India are outpacing those in the Philippines, affecting the return on investment for businesses.
Filipinos are versatile, capable of handling multiple roles within a company, unlike Indians who often specialize in one area.
The Philippines boasts superior IT infrastructure, ensuring reliability and uptime for offshore operations.
The geographical location of the Philippines is strategic, situated between North America and Asia for ease of communication.
The video aims to educate viewers on the benefits of building offshore teams in the Philippines for business growth.
Transcripts
[Music]
hi my name is Ike Stratton and I'm the
CEO of staff virtual a business process
outsourcing company here in the
Philippines and in this video I would
like to discuss why businesses are
increasingly choosing Philippines over
India as the outsourcing destination of
choice so when comparing two cultures
it's difficult I'm gonna have to
generalize a little bit I'm not putting
down India at all I love India I have
many Indian friends never been there but
I know a lot about the differences
between India and the Philippines and I
would say if there's one difference
between India and Philippines I would
say that Indians are more technical in
general but Filipinos have better soft
skills and much much better English so
when it comes to outsourcing there's
really two big players in Asia India and
the Philippines and India really had
first mover advantage if you remember
back in the early 90s you started
getting calls and telemarketing by
Indians oftentimes during dinner asking
you to buy a particular product or
service and there was really sort of a
backlash to all of that a big reason why
is because the Indian accent is simply
very hard to understand for non-indians
the Filipinos have a more legible accent
it's more neutral it's more easy on the
ears and it's easier to understand
I have staff that have no accent at all
in fact a lot of people don't realize
that the Philippines is a third largest
english-speaking country in the world
behind the UK in the USA so the
Philippines was a colony of the United
States for over 50 years and it really
imbued the culture and the people with
great English and they're very
westernized that's another big reason I
think that the Filipinos are much more
westernized than Indians Filipinos love
basketball when they watch movies it's
Hollywood movies not volley with movies
they know
our little stains and Maxim's they know
all of our slang turns so it's really
not just about the English it's about a
better cultural fit for your business
which means they're gonna be able to
plug in to your company you're not gonna
have those language barriers or cultural
barriers another reason why Philippines
I think is winning in the battle of
outsourcing and offshoring is the work
ethic of the Filipino people Indian
companies really enjoyed first mover
advantage in the outsourcing industry if
you remember back in the 90s we started
getting telemarketing in America by
Indian companies and Indian companies
are really the first two to go to market
with offshore services and this happened
around 25 years ago to this day India
remains the dominant player in IT
outsourcing there's millions of Indians
that are incredible programmers that are
working for some of the largest
companies in the world like emphasis the
Tata Group Google there's no doubt that
Indians are definitely some of the most
brilliant incredible programmers in the
entire world but if you're looking for
soft skills you cannot beat Filipinos
Filipinos have a heart of gold they call
it the Pusan binoy the Filipino heart
their heart is what makes them so
incredible a customer service and
they're so empathic and they listen and
they care Filipinos are doctors they're
nurses they're nannies or caregivers
they're receptionist at hotels I just
got back from Dubai and every single
hotel in the Middle East it seems like
as a Filipino working as a receptionist
or concierge if you want soft skills you
cannot be Filipinos another big reason
why the Philippines outsourcing industry
is booming and surpassing India
especially when it comes to call center
services and those things requiring soft
skills is the strong government support
that the government here in the
Philippines provides the business
process outsourcing industry so the
business process outsourcing industry is
really a sunrise industry in the
Philippines it's the largest employer in
the Philippines and the billions of
dollars it generates towards the
Philippines GDP recently just surpassed
the money that they make from offshore
remittances from overseas Filipino
workers or OFWs so it's really the crown
jewel of the Filipino economy and it's
rapidly growing there's about 1.8
million Filipinos working in the
business process outsourcing industry
which is just a phenomenal number and
it's generating tens of billions of
dollars for the economy another reason
why the Philippines outsourcing industry
is surpassing India at this time is that
the Filipinos have really developed
incredible curriculum at the college and
university level to prepare graduates
for jobs in the highly lucrative
business process outsourcing industry so
every year the Philippines is graduating
about a half a million applicants and
many of those applicants want to work in
the business process outsourcing
industry so the the country has really
encouraged the schools to prepare their
students for these lucrative jobs that
could await them in the business process
outsourcing industry we're also seeing a
massive shift from India to Philippines
for all that call center type of work
now my company is in a call center per
se most of the people working for me are
doing non-voice paths but the
Philippines is really the call center
capital of the world there's about 1.8
million Filipinos working in the
business process outsourcing industry
and about half of those are doing
customer support related tasks a lot of
them are on the phone it's funny to see
even Indian companies like the Tata
group are moving their call centers from
India to the Philippines so if the
Indians are outsourcing their call
centers to the Philippines you know it's
the ideal outsourcing destination for
all of your customer centric tasks at
the end of the day it all boils down to
accent if you're on the phone with
somebody that you can't understand that
is a deal breaker especially if you're
trying to sell something and doing
telemarketing to sell anything you have
to do two things right you have to
establish trust first and then you have
to show value and if you're getting
telemarketing by somebody who doesn't
speak proper English
forget about it so the Filipino speak
incredible English
I have Filipino employees my life
partner and business partner speaks
impeccable English she has American
quality English without an accent
those people are virtually impossible to
find in India so Filipinos are better at
English
by and large and you're not gonna have
any of those cultural barriers or
breakdowns that you would have by
outsourcing to India when you go to Asia
when you go to places like India or
Thailand or China you really know you're
in Asia the signs are different it's at
a different language that the writing
oftentimes is vertical instead of
horizontal that's the real Asia right
the Philippines is not that Asian it's
not as Eastern it's highly westernized
my friend says it best he's a Filipino
friend from my Rotary Club since the
Philippines was colonized for 300 years
by Spain and then about six years by
American he jokes that the Filipinos he
says we Filipinos were like Mexicans
that live in Asia that want to be
Americans and I think that's really
funny but there's some truth to that the
Filipinos are by far the most Western
eyes of all Asians and you can really
feel it when you're here it's not like
the rest of Asia it's very different
it's really at the intersection of east
and west and it's strategically located
right in the middle between North
America and Asia another reason why
people are choosing the Philippines over
India is that wages are increasing much
faster in India than they are in the
Philippines my Indian friends that have
companies there it's nothing for for
their staff that asks for 10 to 20
percent increases raises in salary every
year so any return on investment is
gonna be much diminished quickly and
much more quickly in India than it would
be in the Philippines I would say
another advantage for the Pinot's have
over Indians is the versatility so
Indians are often just doing one thing
for your company like programming but a
lot of people need more of a generalists
somebody that can wear a lot of hats
with
is especially from trying to hire a
virtual assistant or executive virtual
assistant you need somebody that can go
from task the task and wear a lot of
hats and have a very versatile skillset
I think the Philippines offers an
incredibly versatile skillset my staff
can do a lot of different things not
just one thing over and over but they
can wear a lot of different hats and
that is super important if you're hiring
a team of generalists doing things like
virtual assistants another huge reason
why companies are choosing Philippines
over India is better IT infrastructure
if you have an offshore call center you
better make sure you have uptime yep you
better make sure that thing's not going
down all the time in in India
unfortunately there's more problems with
the power grid you have more brownouts
you have more downtime unless you're
located in a major city like Mumbai all
bets are off
so if you're really looking for
something to be done with military-grade
precision where you can't have downtime
or very little you need to choose the
Philippines they simply have better IT
infrastructure better telecommunications
it's on par with what you're gonna see
in America or Europe I hope that helps
if you like this video and want more
please subscribe to my youtube channel
we're gonna be putting out many more of
these videos and I want to pass on this
information help people build incredible
offshore growth teams in the Philippines
to fuel their business thank you
[Music]
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