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Contact Centers (cont'd) Share of Voice-Based Revenue in BPO 48% Comments ? India has lost its top ranking in BPO voice revenue to the Philippines. The reasons are that the Philippines, a former U.S. colony, are culturally closer to the United States than India, and 41% that the young Filipinos speak lightly accented American English, which is easier for customers in the United States to understand. India, in turn, has been shifting its focus to non- voice, high-growth and value-based work. FY 2006 FY 2012 ? The call center business is growing at 25-30% a year in the Philippines, compared to 10-15% in India, a research director at global consulting and research firm Everest Group has told the New York Times. ? The Philippines has become more attractive than India to U.S. Share of Voice-Based Revenue in BPO Indian and Filipino Call Center Employees (published Sep 2012) 400,000 companies seeking to outsource customer service, also because the country has better utility infrastructure which results in companies spending less on generators and diesel fuel. Public transportation in the Philippines is better than in India and contact center employees use that instead of companysponsored transportation arrangements. 350,000 ? India's population is 1.2 billion people, 31% of whom are 14 years old or younger. The Philippines has a population of 93 No. of Contact Center Employees in India No. of Contact Center Employees in the Philipines million people, about 35% of them 14 or younger. Source: New York Times, CARE Ratings Any redistribution of this information is strictly prohibited. Copyright © 2013 Internet Securities, Inc. (trading as ISI Emerging Markets), all rights reserved. - 22 -