Beginning in the late 1990s, decision-makers from some of the largest Fortune 500 companies in the world began outsourcing their call centre processes overseas. Led primarily by the US, the motivation for this was to reduce operational costs and increase business efficiencies. India immediately became one of the primary destinations for this type of outsourcing, and it has held that position ever since. There are many reasons call centres in India have been such a popular choice for outsourcing. The country boasts an educated and skilled labour pool necessary for complex customer service and support tasks. “Cost benefits are another important factor in India’s favour, as labour costs are much lower than in other countries. A vast labour pool has been another major factor in India’s favour as a call centre hot-spot,” says Ralf Ellspermann, CEO of PITON-Global, an award-winning call centre outsourcing provider.
The largest number of call centres in India are located along the Eastern corridor of the country, near New Delhi and Mumbai. The high population density around these two cities creates a core location for a substantial labour pool. Additionally, major international airports and many call centre-ready office spaces make these cities attractive for call centre companies. Mumbai is also home to the BPO (Business Process Outsourcing) and ITES (Information Technology Enabled Services) clusters, where most of India’s call centre outsourcing takes place. These clusters are primarily responsible for the growth and development of India’s call centre industry and are a major factor in its global success.
“India also produces a much higher number of MBAs, PhDs., IT, and engineering graduates than many other popular outsourcing countries. It provides the country with an almost unrivalled, highly educated and skilled workforce. The quality of the Indian workforce, combined with its low cost, has made it an extremely attractive destination for call centre outsourcing,” says Ellspermann. As call centres around the globe incorporate more omnichannel functionality, the need for highly skilled labour that can take on more complex tasks becomes more important.
When outsourcing processes to call centres in India, service buyers can feel confident in the talent of Indian labour due to the country’s strong educational system. And although the workforce is highly skilled, the cost of call centre outsourcing services in India is often less than many other outsourcing destinations. Of course, this is a highly attractive component of outsourcing call centre processes to India. As a result of these cost-savings and the other benefits, call centre outsourcing in India provides, the industry continues to grow at a rapid pace.
Despite India’s long-term outsourcing success, the industry is not without its challenges. The biggest threat by far is competition from other well-positioned outsourcing countries. The Philippines, in particular, has ensconced itself as a viable alternative to India for call centre outsourcing services. “For an increasing number of companies, especially from English-speaking countries such as the US, Australia, and the UK, the Philippines has become another preferred outsourcing destination, especially for voice-related contact centres and back-office services. The Philippines holds a competitive advantage because the country has an extremely high level of (American) English proficiency.
Additionally, as a former colony of the country, the Philippines enjoys a close cultural affinity to the US, making it a popular choice for many US-based SMEs,” explains Ellspermann. These are important competitive factors for call centre outsourcing providers in India to consider moving forward. Call centres in India continue to grow and develop, with new services and technologies being introduced all the time. The country has already proven itself as a global leader in quality call centre outsourcing services, and there is no indication that this will change any time soon.
(Brand Desk Content)
