The Economics of Language
English and India's BPO Boom
How India's large English-speaking workforce helped it win call-centre and outsourcing work from the 1990s, and how accent training and AI are changing the industry.
English helped India win outsourcing work.
The boom
- From the late 1990s, firms like GE moved back-office and call-centre work to India.
- Cities like Gurugram, Bengaluru and Pune grew BPO hubs.
Why India
- A large pool of English-speaking graduates.
- Low wages compared with the US and UK.
- Time zones allowing overnight work.
Accent training
Companies trained workers in accents and culture, sometimes with Western names for callers.
Competition
The Philippines became a major call-centre rival thanks to its American-accented English.
AI
Speech AI and chatbots now handle simple calls, pushing the industry toward complex work.
The night shift
A graduate in Gurugram works nights answering calls for a US bank, earning more than many local jobs pay.
Thinking outsourcing came only from low wages
English skills were a key advantage.
Key takeaways
- English skills helped India win outsourcing.
- BPO hubs grew from the late 1990s.
- The Philippines is a major rival.
- AI is automating simple calls.
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