New Delhi: Struggling to diversify the delivery footprint to take advantage of low-cost centres, India's BPO industry is currently losing 70 per cent of all incremental voice and call centre business to competitors like Philippines and countries in Eastern Europe, says a report.
"It is estimated that in the on-going decade India might lose $30 billion in terms of foreign exchange earnings to Philippines, which has become the top destination for Indian investors," Assocham secretary general D S Rawat said.
Thus there is a need to reduce costs and make operations leaner across the BPO industry," he added.
BPO companies could reduce the total operating costs by 20-30 per cent by moving to a low-cost city within India, with a cost differential of around 10-15 per cent for non-voice processes and upwards of 20 per cent for voice processes, the report pointed out.
Several Indian firms have set up substantial operations in Philippines which has a large pool of well-educated, English-speaking, talented and employable graduates. Almost 30 per cent graduates in Philippines are employable unlike 10 per cent in India where the training consumes considerable amount of time, according to the report.