Karela Fry

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Manila is the new Mumbai

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Foreign Policy magazine lists this as one of the stories which happened under the media radar this year:

In fact, as of this year, more Filipinos than Indians now work in call centers. Operating costs in the Philippines are cheaper, and some U.S. executives say American customers find Filipinos’ speech easier to understand than the British-inflected English spoken by Indians. Companies including AT&T, JPMorgan Chase, and Expedia have all hired call centers in outsourcing’s emerging power.

Brazil, Mexico, Vietnam, and several Eastern European countries are also cutting into India’s market share of the outsourcing sector, which according to some estimates has fallen from more than 80 percent to around 60 percent. India’s lead appears secure in some types of outsourcing — software coding, for instance — but the signs for the future do not bode well. Outsourcing giant Infosys cut its hiring from 45,000 last year to 35,000 this year, and Tata Consultancy Services cut its recruitment by 20,000.

India’s masses of educated, English-speaking workers once gave the country an edge, but analysts say the outsourcing market has become saturated in the subcontinent even as other countries have figured out how to compete.

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Written by Arhopala Bazaloides

November 27, 2012 at 5:03 am

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