India’s Former Capital Preferred over The Philippines for Outsourcing Virtual Assistant Roles

Southeast Asia is full of emerging and swiftly developing economies. These countries, including India and the Philippines, have been very popular for offshore outsourcing functions. Out of all the major destinations, India’s former capital, Kolkata, has started taking the lead over the Philippines as one of the most preferred locations for outsourced virtual assistant roles.

Kolkata has several business and cost advantages over the Philippines. Top advantages include:

  • A booming IT sector
  • Flexible workforce for diverse functions from Virtual Assistance to AI
  • Young, skilled and educated workforce
  • Cost-effectiveness
  • Friendly culture
  • Pro-business policies, and much more

Kolkata’s investment in the future of its youth has made it favorable for organizations from various sectors with diverse business requirements. With numerous business districts and a large talent pool proficient in English and other necessary skills, companies are finding India’s former capital, Kolkata extremely attractive.

Why Kolkata is the Better Option for Virtual Assistance Services

Global organizations see numerous advantages in moving not just their manufacturing or high-skill job roles to Kolkata, but also their back-office or business process functions like virtual assistance services.

Here are some reasons that make Kolkata a better option than the Philippines for virtual assistance functions:

  • Significantly Lower Workforce Shrinkage

The cultural fabric of India has helped the country ensure its people are disciplined. This is also the case in Kolkata, West Bengal. In some countries, organizations struggle with various staffing issues including shrinkage. However, in Kolkata that has never been an issue.

  • Low Employee Turnover

Employee turnover is a constant problem for organizations all over the world. Companies struggle to retain good talent for long periods. However, reports from various labor organizations report that employee turnover is one of the lowest in Kolkata among all major cities in Asia. This is largely owing to strict corporate and employment rules of the land.

  • Exposure to diverse industries

Kolkata has several businesses that are leaders in their own industries. This variety in knowledge and talent base helps organizations from different backgrounds to find solutions for their Virtual Assistant requirements.

  • Lower payroll expenses

Kolkata is known to be considerably less expensive for businesses. Easy-for-business regulations and various cost advantages enable companies to lower their payroll expenses without compromising quality.

  • Steady flow of fresh graduates every year

Regulators report that about 7 to 8 million fresh and skilled graduates enter the workforce every year in India. For organizations, this ensures a talent pool that gets refilled very quickly. Out of these millions of talented individuals about 30% call Kolkata as their home.

  • Strong English language skills

Out of all the many things, Kolkata happens to be also known for its literary icons like Rabindranath Tagore. The love for language and expertise in communication skills seem to be higher among youths in Kolkata. Even foreign languages are not as big a barrier to communication in Kolkata in comparison to the Philippines. And so companies that require skilled employees in job roles along with knowledge of certain foreign languages find it easier to scout talent from or set up bases in Kolkata.

  • Sound educational foundation

At every home in Kolkata and the rest of West Bengal, the importance of education is emphasized greatly. Young school kids acknowledge that a solid educational foundation makes way for a brighter future. And so, skilled professionals, to support virtual assistance roles for different industries, are almost waiting to be hired by global organizations.

Why the Philippines is Losing Businesses for Virtual Assistance Roles?

The Business Process Outsourcing industry including Virtual Assistant roles in the Philippines got boosted after the pandemic. This is partly because organizations were looking to quickly move operations away from China. And the Philippines emerged as the logical alternative given its similarities with China. That way businesses also did not have to look too far when finding options beyond Chinese shores.

However, as the dust began to settle, organizations started noticing that they were missing out on the advantages of outsourcing to India. Organizations were missing out on the benefits of a large-scale economy, skilled workforce, and much more. As a result, manufacturing operations from various industries moved to India. High-skilled engineering roles were also transferred to India’s large cities including Kolkata by several tech giants. And now, back-office operations like Virtual Assistance are also finding better growth opportunities in Kolkata than in the Philippines.

With Kolkata, problems like workforce shrinkage and turnover have never been a problem because youth are always looking to up-skill to get better job opportunities. And so, because of this and the host of reasons discussed above, the Philippines is starting to fall behind to second spot behind Kolkata for Virtual Assistant roles.