Indian IT BPO : Challenges and Strategy


Due to globalization, in 1990, when India open its market to the world,  one of the most important things to take shape was BPO boomindian bpo company. Stories of young people earning more,  books on call- centre culture and movies on related books were common. In Today’s scenario, Indian BPO industry provide  employment to more than  3 million people directly and indirectly. The current size of industry is estimated to more than 20 million $ and may clock 12-15% growth in next financial year.

Despite of all these facts, Indians BPO  industry is facing some challenges:

Internally Indian BPO  struggling to maintain its USP, cost effective service.The  global backlash from developed countries affect the industry globally.

The study on information and communications technology jointly conducted by Associated Chambers of Commerce and Industry of India (Assocham) and KPMG said India was losing around 70 per cent of all incremental voice and call centre business to competitors, such as the Philippines and Eastern Europe

As per Businees line, “It is estimated that in the ongoing decade India might lose about $30 billion in terms of foreign exchange earnings to the Philippines, which has become the top destination for Indian investors, thus the need to reduce costs and make operations leaner is increasingly becoming significant across the BPO industry,” DS Rawat, Secretary General, Assocham said.

There is an urgent need to come up with strong strategy to retain No.1 position. Need to shift the focus to non metro cities. BPO industry need to look where the talent pool is.Today most of the employee  working in metro BPOs  are from non metro location. Shift, smaller sector can provide the growth the sector is looking for. It will  help a lot in cutting the cost.

According to report in Hindu times Which state that ” IT-BPO companies could reduce the total operating costs by 20-30 per cent by moving to a low-cost city within India with cost differential at around 10-15 per cent for non-voice processes and upward of 20 per cent for voice processes.”

Up and down are the part of market. India BPO ‘s vast experience and incredible image as the global back office of the world on the basis of quality track is enough to say India’s BPO will  again gain its position.

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About nupoorjain

A highly optimist,and confident one.Believe in my rhythmic sense to motivate other to achieve their best in their professional and personal life. Hailing from India ,a passionate engineer who firmly believes in nothing is impossible.
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