The Effect of the Recession to the Indian and Philippine Call Center Industry

Ever since the recession hit the United Statesinformation technology jobs, the public outrage against
economy, there has been much worry about theoutsourcing in general went up to a fever pitch. This is
decline of the call center industry. Chinese, Latinwhy the Obama administration took the stand against
American, Indian, and Philippine call center industriesoffshore outsourcing.
have all had cause to worry since their businesses areSo with all these against Indian and Philippine call center
all directly connected to the U.S. and other Europeancompanies, how will these industries fair? Well, both
countries that were all also affected adversely by theindustries are still open. Both industry showcase
global recession. So how does this all affect the majorcompetitiveness because of their specific geographical
call center industries? Surely China and Latin Americalocation full of English speaking, educated workforce
are all going to take some heat, but what really(as compared to China and Latin America where the
concerns businessmen is the effect on the top twowages and business expenses may be just as low
call center destinations that cater to U.S. clients: thebut not everyone can speak English Fluently). And it
Philippines and India.seems there is still some growth in these sectors.
The most obvious thing that will happen is thatIndian call centers and other offshore outsourcing in
companies in the US would want to cut costs. Othersthat country does not show any signs of stopping. In
say that this means there will actually be morethe Philippines this year, there is a 9% growth in the
business for the offshore outsourcing industry, butBPO sector. Also, Telus, a major global BPO company
there are others who see things differently. Somehas plans on expanding this year by building another
major call centers are already closing in the U.S. and incenter in the Philippines. Also, there is a 9% growth in
Europe. Sykes, for example closed down a few ofthe Philippine call center industry's income in the recent
already.fiscal year. That may not be as high as normally
Let us consider other factors that might bring downprojected, but considering the economic conditions, 9%
the outsourcing contact center companies in thesegrowth is pretty good.
countries. In the U.S., the major political push has beenNow, regarding President Obama lobbying to get
to try to keep the jobs that it has been losing tocorporations to keep hiring onshore instead of
offshore outsourcing. Ever since the loan mortgageoffshore, this is another can of worms. But what can
crisis, millions of jobs have been lost. First, jobs fromthe administration really do about this? In truth, they will
banks, lending institutions, and anything connected tohave to change the oldest laws regarding corporations
the real estate market (including construction suppliesbecause by law, corporations are required to look
and services, architecture, and engineering) have allafter its own interests. And it is in its best interest to
dwindled. Then other industry jobs followed suithire Indian or Philippine call center services since in
especially those in car and luxury retail. And with thethese specific locations, the service is cheap and the
already popular offshore outsourcing of call center,quality is high.
web design, computer programming, and other major