10 Billion Dollar BPO Industry Ravaged by Frequent Typhoons

Natural calamities like tropical typhoons can create havoc to businesses overnight leading to complete shutdown at times. Philippines, undoubtedly, is one such disturbed country inflicted by typhoons on a regular basis, destabilizing industries and the economy. It is estimated that around 19 tropical cyclones or storms enter Philippines in a typical year out of which about 6 to 9 make landfall. Infrastructural losses can go up to as high as 20 million dollars during a major hit. This, indeed, is quite a staggering figure!

BPO IndustryImage source: ALLVOICES

In this context, question is, is it safe to outsource services worth billions of dollars to BPO service providers that are located in such a high-risk zone? Records say that Manila and Luzong, epicenters of the Philippines BPO industry, have been badly hit by typhoons Nesat and Pepeng (also widely known as Parma) in 2011 and 2009 respectively, causing immense damage to resources and infrastructure. Therefore, one can only imagine the losses that have occurred during the initial days of the cyclones before proper disaster recovery could be put in place. Organizations around the world must take stock of this situation and look at safer destinations like India, a leader in providing impeccable BPO services for more than a decade, for outsourcing critical, time bound Business Process Outsourcing services, both voice as well as non-voice to avoid such heavy financial losses.

The table below gives a rough estimation of the amount of damage caused by major cyclones between 2008 and 2011:

The Indian BPO segment, on the other hand, has come to a commendable level of maturity and professionalism over the years that assures uninterrupted quality services across every industry vertical. Economic stability at the face of severe recession has further established its reign in the global BPO industry. BPO service providers in India adhere to SLAs and establish state-of-the-art infrastructure, technology and security to ensure consistent service delivery thereby leading to customer satisfaction and retention.

Furthermore, high attrition in the Philippines BPO industry can cause its downfall soon since the trained personnel do not want a career in BPO, but just a one-year employment to gain experience. India, however, is able to retain its talent pool thereby providing experienced professionals to its clients for handling domain-specific processes. Keshav Murugesh, group CEO of top BPO company WNS Global Services, firmly believes that BPO processes formerly taken care of by BPO centers in Philippines have “started moving back to India” in the recent months.

Last Updated on June 26, 2018


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