The Business Process Outsourcing (BPO) sectors of India and the Philippines are joining hands to combat protectionism from European Union nations and the US, and to increase cooperation between both nations which traditionally have been competitors as ‘low-cost’ outsourcing destinations.
Both countries will also prepare a plan for a two-way flow of investments, talent management and developing the businesses in both the countries. The apex bodies of both — India’s Nasscom and the Business Processing Association of the Philippines — will sign a memorandum of understanding (MoU) in this regard on Wednesday. The MoU will be signed in Mumbai.
Nasscom’s Vice President, Global Trade Development, Ameet Nivsarkar, confirmed the development to Business Standard.
“The MoU is being signed to jointly fight protectionism in certain countries, increase co-operation between the two nations and explore common projects for industries of both the countries. There are common issues both the associations face, and this is also an attempt to sort them out.”
A number of companies from the Philippines were looking at exploring the possibility of setting up presence here, while Indian companies were also looking at opening sites in Manila. At present, there are around 25 Indian BPO firms in the Philippines, while 40 per cent of the new investors in that country are global Indian firms.
On competition, Nivsarkar said Indian BPO and IT companies do not consider their Philippines’ counterparts as competition, nor as a threat. “India continues to be the leader in some of the outsourcing sectors, while the Philippines has got its own presence in the global industry,” he said.
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Earlier in 2006, the two associations had declared that both nations will cooperate for the common good. However, no official agreements were signed at the time. Nasscom earlier had entered into similar agreements with the industry associations in Chile and Columbia.