Philippines Surpasses India as Call Center Hub

The Philippines has officially surpassed India as the number one destination for U.S. call center business. The growing preference for demonstrates the maturity of the outsourcing market, as executives adjust priorities away from pure cost savings in favor of value. The cost of an agent's monthly wages is about 26,000 pesos (or $600), which is about 10,000 pesos more than the average Filipino family earns each month.  This number is higher than what companies could pay for labor in India, but executives are starting to see the value in spending a little more. 

"US companies are reluctant to discuss their outsourcing strategies, but privately some executives acknowledged that early on, they focused primarily on saving money. But as they gained experience in different countries, they realized that was not the best strategy." -The Economic Times

 Culturally, the Philippines is a much better fit to the U.S., with a better knowledge of American English idioms. Filipinos learn U.S. English beginning in the first grade, watch popular TV shows like Friends from a young age.  There's also the benefit of a stronger infrastructure in the Philippines, which leads to a lower frequency of blackouts and allows companies to spend much less on back up generators and diesel fuel.  The Indian outsourcing industry as a whole still earns about 10 times more annually, but the revenue is growing in the Philippines.  According to Salil Dani of the Everest Group, the call center business is growing at 25-30% annually in the Philippines compared with 10 to 15% growth in India.

Read it here at the Economic Times.

"Random Hacks of Kindness" in Latin America

Random Hacks of Kindness,  a global community of computer experts that develop practial open technology for social good, is now partnering with Fundación Ciudadano Inteligente  (The Smart Citizen Foundation) to support their efforts in Latin America.  

Based in Santiago, Chile, Fundación Ciudadano Inteligente was founded with the goal to promote transparency.  FCI encourages citizens to utilize information and communication technologies to join the organization's cause and networks with organizations that work in themes of transparency, technology, and social good throughout Latin America.

Random Hacks of Kindness has been responsible for sharing open-source technologies mostly related to water management: flood warning systems,  supply-demand water planning, maximized utilization of non-potable water for crop irrigation systems, ect.  In one particular project, these technological tools are meeting the tangible needs of the citizens of Peru.

In Peru, water resources management is a major issue.  Over 98% of the country's annual renewable water resources is available east of the Andes Mountains, in the Amazon region.  This leaves the coastal area of Peru, home to most of the major Peruvian economic activity and half of the country's population, with less than 1.8% of the national freshwater renewable resources.  RHoK is working to create a crowdsourced bank of hydrology maps online that will enable more efficient water usage and planning, thus stopping the increasing toll that economic and population growth take on the inaccessible water resources.  

The Developing Latin America event will bring together developers, designers, and members of civil society from 6 Latin American countries to find innovative technological solutions for the social good of their country and region. All 6 event locations will participate in the upcoming RHoK Global December 2011 event where they will have an opportunity to collaborate with peers around the world.

Solutions in Latin America: 

Buenos Aires, Argentina

Lima, Perú

Mexico City, México

Montevideo, Uruguay

Rio de Janiero, Brasil

Santiago, Chile

The sharing of open source technologies like the ones being utilized by RHoK and FCI offer the promise of rapid development in these areas for the true benefit of society, allowing people's needs for water to be met more efficiently.

Brazil's Emerging Middle Class

These Brazilians, Osmar and Maris Ferreira are part of the emerging lower-middle class ("C Class") who are rethinking their roles and expectations for the future.  Cheap credit allows people like the Ferreiras and other members of the lower-middle class to participate in the tourism industry.  In fact, the C Class now accounts for half of the passengers traveling by plane in Brazil.

From the outside, it looks like another step for Brazilians on the path towards a stronger economy, but Brazilians from the upper classes aren't exactly celebrating. Many upper echelon Brazilians complain that they're experience overcrowding in airports, and that their favorite vacation spots are being inundated with less refined clientele.  Call it frustration with change, or just plain snobbery, or whatever you like, but anthropologist Robert DaMatta calls the Brazilian "resistance to equality."  Traditionally, titles and hierarchy are woven into the Portuguese culture, so Brazilians naturally want to be seen as set apart.  In a poll taken by Data Popular, 48% of the A and B Classes said that "the quality of services has worsened now that they are more accessible," and about half admitted their preference sharing experiences and places with those in the "same social level."  As a third party spectator, this appears to be a natural step towards economic strength for the BRIC member.  

Read it here at BBC.