India losing 70 Percent of Voice and Call Centre Business to Philippines and Eastern Europe

by rawemotions Sun Apr 06, 2014 2:56 pm

http://economictimes.indiatimes.com/tech/ites/india-losing-70-per-cent-voice-and-call-centre-business-to-philippines-eastern-europe-survey/articleshow/33326146.cms

by MaxEntropy_Man Sun Apr 06, 2014 3:02 pm

i heard a report on NPR that another country that's stealing back office business away from india is mexico. the number of deported illegal immigrants who have learned to speak good american english while in the US is increasing in mexico and they are being employed in call centers.

by Marathadi-Saamiyaar Sun Apr 06, 2014 3:51 pm

MaxEntropy_Man wrote:i heard a report on NPR that another country that's stealing back office business away from india is mexico. the number of deported illegal immigrants who have learned to speak good american english while in the US is increasing in mexico and they are being employed in call centers.

Actually, this is a v.good idea to solve the illegal immigration problem. Set up english language/training schools across the border. Illegals can return, get trained work across the border for american call centers. Also the drug ravaged population can train solving unemployment/drug p[oblems aling the border.

Phillipines was a 5 ye old story. Easter european cheap labor was used in bangalore even 3-5 yrs ago, and they are moving back to start their own in eastern europe.

by southindian Sun Apr 06, 2014 4:26 pm

rawemotions wrote:http://economictimes.indiatimes.com/tech/ites/india-losing-70-per-cent-voice-and-call-centre-business-to-philippines-eastern-europe-survey/articleshow/33326146.cms

Water always finds its lowest levels.

Indian economy is becoming expensive to run call center business from tier 1 cities.

Philippines, Eastern Europe can sustain the business model till its profitable

Next... it may move to Africa

by nevada Sun Apr 06, 2014 9:58 pm

How much longer before software jobs are lost too?

by rawemotions Sun Apr 06, 2014 10:13 pm

nevada wrote:How much longer before software jobs are lost too?

There are two aspects to the changing dynamics of IT Jobs given below (both are negative for Indian IT Jobs). On the Positive side, Software is now getting into newer fields, 3D printing, Biotech. So the pie would grow, but domain knowledge along with basic computer science (inter disciplinary skills could become important)

Short term - Move the Jobs to US itself

Just to think of it. In the US Immigration Bill, there is going to be legislation to enable H-4 to work. That is probably around 500000. Many of them are MCA/Engineers from India, who cannot work. Conservatively I assume 1/5th or around 100K folks will be looking for work.

Now all these come into the market. plus the there is a push to hire in US. The legislation might not have salary restrictions for H-4. We will have to see.

In addition, anybody who passes out of a US University with a Master's degree gets a stapled Green Card (or atleast that is the proposal). GC jobs do not have salary restrictions or oversight.

US New Immigration Bill is going to penalize companies that predominantly offshore.

Net result going to be is that there will be a flood of people willing to work at lower salaries in the US itself. Even TCS and Wipro might want to hire here. So the growth might not be as much as what it was in India for the past few years. Unless the companies innovate and get into Software products and move up the value chain, the going could be tough for job growth in IT sector in India. the 100's of thousands being hired now (sum total) might start slowing down.

Long term
Likely to be a supply glut from China (both as a market as well as supply of Labour) which is getting into English Education in a Big way. Which means the Engineers from all over China will be well versed in English and will compete heavily for the same outsourcing pie.

by michelle2 Sun Apr 06, 2014 10:55 pm

southindian wrote:
rawemotions wrote:http://economictimes.indiatimes.com/tech/ites/india-losing-70-per-cent-voice-and-call-centre-business-to-philippines-eastern-europe-survey/articleshow/33326146.cms
Philippines, Eastern Europe can sustain the business model till its profitable
Next... it may move to Africa

in other words, the philippines and eastern europe can sustain the business model so long as it's not profitable, but once it becomes profitable, it cannot sustain it, and it may move to africa?

in that one word above in red, one can see the real reason why india is losing the call center business.

by Merlot Daruwala Sun Apr 06, 2014 11:53 pm

rawemotions wrote:http://economictimes.indiatimes.com/tech/ites/india-losing-70-per-cent-voice-and-call-centre-business-to-philippines-eastern-europe-survey/articleshow/33326146.cms

Just a link, Rawmotions?? Where is your customary limp-wristed breastbeating? Where is the finger-pointing at Congress / Sonia / seculars??

You get a Fail for this half-hearted effort. Resubmit after including all the essential parts of your narrative.

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