BPO players ramping up Philippines operations
Galloping wage inflation in India is driving companies to cheaper global destinations
The wheel has come a full circle for the Indian business process outsourcing (BPO) sector with runaway wage inflation driving the who’s who in the domestic BPO world to look for low cost destinations such as the Philippines to scale up operations.
Leading the pack is the Infosys BPO, which has already set up shop in the Philippines in association with a local partner. The company is said to be planning to ramp up its presence there through an acquisition or floating a new facility.
Other BPO players such as HTMT, IBM Daksh and GenPact are also ramping up their Philippines operations, industry watchers say. Company officials, when contacted, refused to comment.
Ironically, India scripted its much acclaimed and much lampooned (in the West) BPO success story on the back of its low wage cost advantage.
Investments, advisory and management firm Tholons’ Principal Vinu B Kartha told FE that the challenges of scaling up in India are getting tougher each day.
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