China?s BPO emergence threatens dominance of PH, India

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In a mid-year report, XMG said China’s year growth is the largest compared to the next two largest players (India and the Philippines). ?This reflects how political instability in the US has a smaller impact on China, which has actively sought out customers in the Asian market. Industry volume for India and the Philippines has historically focused on gaining share of US outsourcing,? said Anna Juanillo, research manager at XMG Global. XMG forecasts the Philippine industry to grow from $11 billion to $12.7 billion in revenues from 2011 to 2012, respectively. The top rung still belongs to India growing from $59 billion in 2011 to $63.2 billion in 2012. A close-second is China with revenues of $45.7 billion in 2011 to $53.8 billion in 2012. XMg said the last three years (2010 to 2012 projections) have seen growth, in the Philippines, of 25.4 percent, 23.6 percent, and 15.7 percent, respectively. This same period, it said, saw growth by the other two primary players — India showed 13.2 percent, 8.6 percent, and 7.1 percent during that same period; while China’s numbers were, 43.5 percent, 63.6 percent, and 33.0 percent. ?These numbers collectively show a gradual chipping away of India’s stronger historical dominance; though time will tell if it will be significant,? it noted. At this point, China and the Philippines are each showing “real growth”, in terms of total market share, as compared to India’s current dominant position, XMG said. In billions of dollars, India’s last three-year growth cycle was, 54.33, 59.0, and 63.2. China’s market share was 35.76, 45.7, and 53.8. In 2010, India’s revenues were $18.6 billion more than China, but by 2012 the difference was down to $9.4; a significant reduction. The Philippines modest contribution rose from $8.9 to 12.7 billion; a not-so-insignificant 43-percent increase in revenue. That is only slightly lower than China’s 50 percent revenue increase, XMG reported. ?This trend suggests new opportunities for other players to gain market share as well since the growth of the offshoring outsourcing industry will remain relentless,? XMG said. ]]>

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