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Futuristic State of Indian BPO Industry

October 6, 2008

BPO sector in India is smarting under the pain of global financial meltdown—it is obvious for the plethora of suspicions, expectations, doubts, and forecasting to emerge and make waves among the industry. The most obvious thing that we can expect is that the Indian BPO industry will remain on tenterhooks for some time. Presently, even the experts can expect and can’t calculate exactly. For the last 10-12 days, the global financial meltdown has sent shocks across the world—the prices of oil, value of money, and export have suffered a lot and have seen a lot of changes. Outsourcing is one of the major part of export in India and it plays a significant role in the economy also.

In a statement, Som Mittal, the president of IT-BPO industry body National Association of Software and Service Companies, popularly known as Nasscomm, said: “The global financial meltdown following the collapse of US investment banks will have limited impact on the Indian IT sector in the short and medium terms, but poses a challenge in the long term”. The statement is significant and we need to consider it with care. We can see that the president of Nasscomm wants to sound concern rather than panic about the future of Indian IT-BPO industry.

There are many areas where Indian BPO industry needs to look for while making it a more stabilized body to withstand such periods and also to make it more profitable so that it can attract talent and resource for the demanding growth. Some new pricing models such as outcome-based and transaction-based models are on track to be unrolled. These models are suitable for non-voice based services, where India potentially needs to tap the avenues. Apart from this, the dependency of Indian BPO industry on US is also a major factor. Indian BPO industry should look beyond US and tap the potential in other countries of the world also. Eastern Europe, Latin America and the Asia-Pacific region are on high for Indian BPO industry and there is huge potential in these regions.

The hushed-up talk behind the IT-BPO industry in India is about expansion—how to make growth in other fields of service-based industry? To cater to this question, KPO sector is being explored quite beautifully. Legal outsourcing, architecture outsourcing, and other areas are emerging as potential avenues for Indian BPO industry. New services and new countries are the demand of Indian BPO industry, which is facing a sort of saturation from the current demands of services and clients. The increase in diversified skill-demand and new areas of working can infuse fresh air in this industry. As per one of our previous discussions, a lot of Indian talent does not like BPO sector due to its majority voice-based potential. However, with new skill-set based work opportunities, Indian can well tap this talent source and generate a force that withstand the growth demand. Though the global economy is on downturn, still, many in India believe that Indian BPO industry can survive the scare.

Girija Pande, Asia-Pacific executive vice president and head of Tata Consultancy Services (TCS), expressed his views about this condition that the diversified growth of the BPO companies has and will enable them to give the upper hand on this financial meltdown. The company itself is exploring diversified avenues where it can make a stand and grow.

The mantra for Indian BPO industry at present is two-fold: to withstand the onslaught of global financial meltdown and to tap the markets that laid untouched till now due to multifarious factors. To achieve this, new areas of services and new regions of services would be explored. Given the advantage that Indian talent pool is well-adapted to learn different and multiple languages, European and Latin American countries present a huge mine of opportunities for Indian companies.

Related posts:

  1. Impact of European crisis on the Indian BPO Industry
  2. The Lehman Brothers’ Enigma and BPO industry
  3. India’s ITES/BPO Industry Turns to Domestic Market, New Geographies in Difficult Times
  4. Can India solve the BPO problem?
  5. Cloud computing: Just was the doctor ordered for Indian IT Outsourcers


Written by Vivek Kumar · Filed Under BPO Blogs 

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