Outsourcing from Asia to Grow Rapidly

Filed in archive Outsourcing News on February 22, 2005

A study by ACA Research said that 60 percent of call centers in the Asian major outsourcing markets expect to expand in the next 12 months.

India leads predicted growth at 64 percent, followed by the Philippines at 53 percent, and China at 50 percent. Last year, China, South Korea, India and the Philippines were the leading performers. Also, most countries have developed and upgraded their telecommunication systems in the past months.

The report also showed that staff recruitment is still a problem with Asian call centers. Employee turnover was recorded at 50 percent. Half of call center workers leave to work for a competing call center facility. This trend would have an impact on wages. At present, staff costs for Asian call centers are between 40 to 50 percent of operational costs compared to 60 to 70 percent in first world countries.