Manufacturers quit China for Philippines

[Aramsogo]

Philippines taking way, way more Indian jobs than Chinese jobs. Go Philippines!!!

http://www.nytimes.com/2011/11/26/b...ia-as-hub-of-call-centers.html?pagewanted=all

A New Capital of Call Centers

By VIKAS BAJAJ


MANILA — Americans calling the customer service lines of their airlines, phone companies and banks are now more likely to speak to Mark in Manila than Bharat in Bangalore.

Over the last several years, a quiet revolution has been reshaping the call center business: the rise of the Philippines, a former United States colony that has a large population of young people who speak lightly accented English and, unlike many Indians, are steeped in American culture.

More Filipinos — about 400,000 — than Indians now spend their nights talking to mostly American consumers, industry officials said, as companies like AT&T, JPMorgan Chase and Expedia have hired call centers here, or built their own. The jobs have come from the United States, Europe and, to some extent, India as outsourcers followed their clients to the Philippines.

India, where offshore call centers first took off in a big way, fields as many as 350,000 call center agents, according to some industry estimates. The Philippines, which has a population one-tenth as big as India’s, overtook India this year, according to Jojo Uligan, executive director of the Contact Center Association of the Philippines.

 

[Kyusuibu Honbu]

Not at all a good news for India. The fact that manufacturers are moving out of china but not setling in India means we are still not a attractive destination for them. With rising labour cost in china this was bound to happen, but it seems we are losing this opportunity. Thanks to our policymakers, scamsters, ngos's etc.

We are among the top ten manufacturers in the world, though we lag in manufacturing electronic products.

India in top 10 manufacturers list

The hurdles we face are poor infrastructure and red tape.

 

[Water Car Engineer]

That is the entire problem. Long-term investments such as these should have been done 10 years ago, in order to get the benefits today.

The result is that (according to your own post) the real benefits will come by 2022 instead of now.

Yup, these are long term. And the fruits of these will show later on. And programs like this are just starting.

And that is assuming that the Congress party will be able to properly implement this strategy. From what I've seen, the Congress party are die-hard political opportunists, and thus will be much more likely to favour "short-term gains" rather than "long-term investment". We can see that already with all the promises of reservations and entitlements.

It's mostly what you have heard from Indians in this forum.

The center are serious about projects like DMIC, and so are the state governments involved.(Gujarat, Rajasthan, Maharashtra, etc)

 

[IndoUS]

Happens everywhere, with economic development people now have more money and they want things that they couldn't afford before. So rise in income and manufacturing cost has to to be equated into it. As for countries like Philippines are just starting to develop so their cost of labor will be low, and workers will be easy to negotiate for low income.

 

[Chinese-Dragon]

The center are serious about projects like DMIC, and so are the state governments involved.(Gujarat, Rajasthan, Maharashtra, etc)

Having a GDP growth target of 9% for the financial year, and then ending up with the current 6.1% growth rate, doesn't really show that the Congress government is serious about meeting any targets.

Take a look at Gurjarat to see where the real economic growth is.

It's mostly what you have heard from Indians in this forum.

No, on the contrary it seems as though Indians don't want to talk about their current 6.1% growth rate at all. I read about it from the international media.

 

[IndoUS]

We are among the top ten manufacturers in the world, though we lag in manufacturing electronic products.

India in top 10 manufacturers list

The hurdles we face are poor infrastructure and red tape.

The greatest threat to India's development is the Government itself, there are way too many red tapes, old laws from the era when the economy was more closed doors, these should be thrown out.

---------- Post added at 11:32 PM ---------- Previous post was at 11:30 PM ----------

Having a GDP growth target of 9% for the financial year, and then ending up with the current 6.1% growth rate, doesn't really show that the Congress government is serious about meeting any targets.

Take a look at Gurjarat to see where the real economic growth is.



No, on the contrary it seems as though Indians don't want to talk about their current 6.1% growth rate at all. I read about it from the international media.

A 6.1% growth is still much better compared to other countries where even a 1 to 2% growth is getting hard to achieve. As far as I think as long as this global economic down turn continues we are bound to have low growth.

 

[tryindiffdrugsNgirls]

Having a GDP growth target of 9% for the financial year, and then ending up with the current 6.1% growth rate, doesn't really show that the Congress government is serious about meeting any targets.

Take a look at Gurjarat to see where the real economic growth is.



No, on the contrary it seems as though Indians don't want to talk about their current 6.1% growth rate at all. I read about it from the international media.

Hehehehehe u know you are doing good when an enemy praises you (saying just for the sake of it ) you know CD I don't consider u as an enemy right? .

 

[sweetgrape]

I find that, many people just focus on the labor expenditure!!!
China advantage: comprehensive industry chain, good infrastructure, good training worker but relatively low labor cost, preferential policy, and most of worker accept the work overtime. Which countries do have these all? labor cost is just one factor.
And in east china, the labor cost rise, but don't forget the middle and western china, there are about another 6 hundred million person. In 20 years or more, no country can replace china, just watching.

 

[Chinese-Dragon]

Hehehehehe u know you are doing good when an enemy praises you (saying just for the sake of it ) you know CD I don't consider u as an enemy right? .

I don't consider any person or nationality to be my enemy, I simply respond depending on how the other side behaves towards us.

 

[sweetgrape]

So, I stand corrected the cost is a BIG factor and Chinese labor is getting expansive. It makes companies to think twice to put manufacturing in China.

Too much countries labor cost is lower than china, most of african countries, India, many east south countries. why don't the manufacturer choose them? You also said"It makes companies to think twice to put manufacturing in China." After think twice, then most of companies choose china, all these prove that labor cost is not the sole factor, is it?
I don't think your indian know these, maybe you don't know the difference between strengthen and potential!!!

Lack of skill labor, high attrition rate of employees, excessive govt. control/ interference in company affairs, increasing labor cost and new lending policies of China are big disadvantages of China vs Philippines.

You know much about economy!!! So if you are leader of indian, Indian will be ahead of china, right?

 

[AyanRay]

the labor laws are not protecting the majority of Indians though. The electronics scavengers and manual shipbreakers are definitely industrial workers, but they make 6 times less money than Chinese workers do and work in the most horrific of conditions. The labor laws in India protect only the employees of the regime.

Not entirely correct. Do you know that china exports labour to india? Chinese labours are much cheaper than indian. The govt has recently banned foreign unskilled labours to work in india. As a result we can see now chinese firms are loosing key infrastructural projects in india

 

[TopCat]

Indian manufacturing sector grew only 3% last year.
India's growth mainly coming from Governmnet infrastructure projects which are mostly funded by borrowing. not sure how long india can sustain this.

 

[shuttler]

Too much countries labor cost is lower than china, most of african countries, India, many east south countries. why don't the manufacturer choose them? You also said"It makes companies to think twice to put manufacturing in China." After think twice, then most of companies choose china, all these prove that labor cost is not the sole factor, is it?
I don't think your indian know these, maybe you don't know the difference between strengthen and potential!!!

I find that, many people just focus on the labor expenditure!!!
China advantage: comprehensive industry chain, good infrastructure, good training worker but relatively low labor cost, preferential policy, and most of worker accept the work overtime. Which countries do have these all? labor cost is just one factor.
And in east china, the labor cost rise, but don't forget the middle and western china, there are about another 6 hundred million person. In 20 years or more, no country can replace china, just watching.

I agree there are more factors to be considered about investing in a manufacturing venture than labour costs alone. China has gained all the experience of manufacturing in the last 30 years and it is at the juncture of upgrading their mode of manufacturing operations or moving inland for low tech and labour intensive buz. That is why the Yangtze waterway and the 3 Gorges hydroelectric dam are so important for keeping transportation costs low and a constant electricity supply for inland factories albeit a longer lead time is needed. Hats off to the Government Planners though at the expense of environmental deterioration which I hope the Government can address to squarely.

From the info I got, FDI in China has grown by 8.16 % last year yoy. But there is a shrinkage of processing and assembling investments by a staggering 36%.

The above figures in the OP fail to disclose the origin of investments that Pinoys are absorbing but I think some of these investors are from Greater China who find the Phillippines is a proper strategic location for diversification of their manufacturing ventures overseas.

 

[shuttler]

Philippines taking way, way more Indian jobs than Chinese jobs. Go Philippines!!!

http://www.nytimes.com/2011/11/26/b...ia-as-hub-of-call-centers.html?pagewanted=all

A New Capital of Call Centers

By VIKAS BAJAJ


MANILA — Americans calling the customer service lines of their airlines, phone companies and banks are now more likely to speak to Mark in Manila than Bharat in Bangalore.

Over the last several years, a quiet revolution has been reshaping the call center business: the rise of the Philippines, a former United States colony that has a large population of young people who speak lightly accented English and, unlike many Indians, are steeped in American culture.

More Filipinos — about 400,000 — than Indians now spend their nights talking to mostly American consumers, industry officials said, as companies like AT&T, JPMorgan Chase and Expedia have hired call centers here, or built their own. The jobs have come from the United States, Europe and, to some extent, India as outsourcers followed their clients to the Philippines.

India, where offshore call centers first took off in a big way, fields as many as 350,000 call center agents, according to some industry estimates. The Philippines, which has a population one-tenth as big as India’s, overtook India this year, according to Jojo Uligan, executive director of the Contact Center Association of the Philippines.

May be the Americans are fed up with the large indian trolling army on the internet who keep criticising the "stupid" questions and "ignorance" of the US consumers.

"Even Indian BPO companies are shifting work to the Philippines. India's Tata Consultancy Services, which opened its first BPO center in Southeast Asia last December at Taguig City, projected that Philippine outsourcing will grow into a $25 billion industry by 2016, providing work for some 1.3 million people. The number of call centers in India has fallen by half over the past three years." Asia Times Online : Philippines ousts India for outsourcing top spot

The Filippinos are nice people and its good to see their expansion in BPO.

There are some other outsourcing businesses which India still has a good hold onto: New Pharmaceutical Drugs Testing Centers and Private Tutoring. The former has created a lot of ethical issues that I do not know if their government wants to do something about them.

 

[FairAndUnbiased]

Not entirely correct. Do you know that china exports labour to india? Chinese labours are much cheaper than indian. The govt has recently banned foreign unskilled labours to work in india. As a result we can see now chinese firms are loosing key infrastructural projects in india

i don't want to hurt your feelings but...

The Metal Sorters North of Mumbai - James Fallows - International - The Atlantic

North of Mumbai, Indian women are paid approximately $80 per month, or roughly one-sixth what the women who do precisely the same type of sorting work receive in Shanghai (as seen in yesterday's "The Metal Sorters of Shanghai"). Unlike Shanghai's metal sorters, they aren't equipped with uniforms, face masks, or training. Rather, they are brought to the factory by sisters, mothers, aunts, and grandmothers, and taught this non-trivial, skilled work on the fly.

Chinese workers are in India teaching Indians how to weld pipes, wire buildings and design circuits.

India imports 15,000 Chinese laborers to build, teach infrastructure projects

Perched precariously on scaffolding, several Chinese workers showed Indian laborers how to weld the shell of a blast stove at a steel plant construction. Step by step, the Indians absorbed the valuable skills needed to build a large, integrated factory from scratch in record time.

"I have worked on building four new steel plants in the last 10 years in China, and I am here to teach Indian workers to do the same," Hulai Xiong, 38, said about the construction site in the eastern Indian state of Jharkhand. "In China, we build very fast. Indian workers are slow and sometimes lazy. They are not familiar with modern industrial construction processes."

Clad in blue overalls, 1,600 Chinese supervisors, technicians and other laborers work at the 2,000-acre site. The $1.7 billion factory, which also relies on Chinese technology, employs 5,000 Indian workers.

1600 Chinese are managing the 5000 Indian laborers. The Indian author calls the Chinese supervisors and managers "laborers" which is a joke when in the same paper they admit that Chinese are there only to manage the Indians, and only touch the tools to teach Indians. Its the Indians that are sweating in the hot sun while Chinese are in the air conditioned office.