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Friday, August 30, 2013

Rupee fall gives BPOs some relief from Philippines

Partho Sarkar, CEO of BPO firm Hinduja Global Solutions (HGS), is among those who are happy about the rupee's fall against the dollar. The BPO business in India has taken a bit of a knock, thanks to the growing competitiveness of the Philippines and the withdrawal of the 10-year tax holiday that the Indian government previously extended to the IT/BPO sector.


"The weakening rupee will make us more export-competitive. India has lost a lot to the Philippines," says Sarkar. About 32% of HGS's revenues are dollar-denominated. The Philippine peso too has depreciated against the dollar since May, but far less than the rupee.

Philippines has over the past decade emerged as a strong contender to India, particularly in the voice BPO space. India's BPO revenues now are at about $16 billion annually, while that of the Philippines is about $13 billion.

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