Indian contact centres face ruin

Indian contact centres face ruinThe bottom appears to be falling out of the India contact centre market after a new report exposed that operators could lose nearly 70% of their business to competitors in Eastern Europe and the Philippines by 2020.
But the study, by the Associated Chambers of Commerce & Industry of India (Assocham), shows the move is not being triggered by companies’ reluctance to outsource to India, rather by soaring operating costs.
Staffing is also an issue – almost 30% of graduates in the Philippines are employable straight from university, whereas in India the figure is 10% because of the need for greater staff training, according to the report. It also shows that many Indian firms are increasingly moving to the Philippines to take advantage of the low costs and English speaking workforce. Cultural proximity to the US is another factor.
Assocham secretary general DS Rawat said that there is a need to reduce costs and make operations leaner across the industry in India.
He added: “We estimate that in the ongoing decade India might lose up to $30bn (£18bn) in terms of foreign exchange earnings to the Philippines.”
The trade body is now calling on companies to reign in costs and move their operations to cheaper areas within India. The report highlights that towns such as Ahmedabad, Chandigarh, Coimbatore, Dehradun, Jaipur, Kozhikode, Nagpur, Nashik and Palakkad could provide a boon to the industry, as smaller towns have much lower staff attrition rates.

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  1. Indian contact centres face £18bn hit as firms switch to Philippines http://t.co/jYTsRYMbo6 #telemarketing #directmarketing #advertising

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