012507: India eyes Phils. as solution to BPO overcapacity

 

 

By Dennis D. Estopace

Reporter

 

INDIA, the world’s largest service provider for businesses in the West is turning to the second-largest location of call centers—the Philippines, an executive of a firm that installed the contact centers said late Tuesday.    

The “interest to invest” in the Philippines is spurred by the dwindling capacity and supply of manpower in India, as well as the increase in the number of companies in the United States going to higher value process outsourcing, said  Gerry C. Topacio, executive vice president and country head of Diversified Technology Solutions International Inc. (DTSI).  

“Today, it’s not only business process outsourcing [BPO]: you have knowledge BPO, legal BPO, aside from customer relations management, and voice,” Topacio said. “And that’s where we are strong.”          

Topacio said the attrition rate in India is higher than that in the Philippines. “Given these components, many companies in India are seriously exploring investing here,” he added.            

This spells good news for DTSI, which tried to meet the P1-billion revenue mark last year, but only hit P900 million, according to Topacio.               

One call center could easily bring $8,000 per seat, Topacio said. This means a 100-seater—the minimum for a small-scale center—would translate into a $800,000 in investment for each company that comes to the Philippines.    

Topacio was part of a Philippine trade mission to Mumbai, India, last week.       

DTSI, a Board of Investment-listed firm, claims it has installed more than half of the total seats in the country.

Topacio said that one of the largest call centers in India with 50,000 employees, has expressed interest in moving operations to the Philippines. He did not name the company. 

DTSI this year has a better chance of achieving its revenue target as it recently signed up distribution agreement with Systimax-brand cable maker Commscope Inc. Under the agreement DTSI would distribute its cables in the Philippines.

Topacio said the partnership with Commscope would add 30 percent to DTSI revenue this year.

http://www.businessmirror.com.ph/01252007/companies03.html