Recently there has been an increase in the number of call centers located in the Philippines, with some companies sending their call centers from India to the Philippines. The reason for this being that many customers are happier with the Philippines’ more American styled English as opposed to the “hard to understand” British English of India.
First off this is good for the Philippines as it helps raise the standard of living for the population, as the salary provided by the call centers is above the national average. This will help pump more capital into this economy. On the downside however, the call center industry in India is losing some of its business, though not too much for them to worry about as they remain strong in the information technology branch of call centers. Also to be taken into consideration is the value of the peso and rupee to the dollar. The rupee is currently on a downward decline which would make it cheaper to keep outsourcing calls to India. While the peso in the Philippines had recently seen a steady increase in value which the article mentions could hurt their position on the industry if the value strengthened to 35 pesos to the dollar. It is interesting to see how shifts in one countries economy could result in benefits or hindrance to another country.
One of the main differences between India and any other developing country is the net exports. In India the net exports is negative as such their rupee will continue weakening.
ReplyDeleteIn other developing countries the net export is positive as such their currency will keep appreciating.
ReplyDeleteThis is because of the strength of Indias domestic sector compared to all other countries.
For sure if most of the call centers are move to Philippines this will affect India's economy. Im pretty sure out sourceing call centers in India brings a lot of money to the country. This will hurt India tremendously if people moved their call canters in Philippines even more.
ReplyDeleteI doubt that the calling service industry in India is such important that losing it will bring a huge loss to its economy. With its fast development these years, I think it is reasonable for India to transfer its labor to more high-tech industries instead of pure service market. For Philippine, this is absolutely a good chance to develop its economy. Also, with many international corporations' calling center settling in Philippine, more trade chances will be brought to there too.
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