Many small and medium sized American companies appear to have been moving their feet for the Philippines over India as their BPO headquarters. Many global companies like AT&T, JPMorgan Chase and Expedia have already shifted work for their outsourcing needs.

Analysts also point out that during the financial crisis, the Philippine government invested heavily in infrastructure that allowed the nation to compete better globally. Moreover, IT and outsourcing enterprises in the Philippines enjoy a 100 percent tax exemption for up to eight years. The island country also provides cost benefits for infrastructure, operational expenses and business continuity.

It is also a challenge for India to continue maintaining its talented task force in the BPO sector because it is also facing competition with China, Mexico, Malaysia and Canada.

Philippines are expected to grow at a stable rate annually in BPO exports over the next five years. India's output for the demanding services have always ranked as satisfactory but they need to push themselves from satisfactory to excellent. They should instead focus on launching more innovative products and checking staff turnover.  The Indian government too, should sit up to take note and work towards promoting business friendly policies.