State of Indian BPO industry

August 23, 2011

As per DataQuest,  Indian BPO companies have grown by 15% in 2009-10, compared to 2008-09. In 2008-09 the revenue was Rs. 35,965 crore and in 2009-10 it was Rs. 41, 466 core. Many industries reported that the Indian BPO industry is slowing and the Philippines is stealing the Indian BPO market. But the Dataquest report disputes this notion.

Most of the major Indian IT companies like TCS, Infosys, and Wipro have their own BPO division, and are getting integrated ITO and BPO projects. Seven out of eighteen new deals TCS signed were integrated ITO-BPO deals.

There is a strong competition among pure play Indian BPO companies like Genpact, WNS,  and Firstsource with other IT outsourcing companies. Pure play BPO companies are winning projects based on their business domain knowledge such as finance, accounting,  and HR. Pure play BPO companies have technical infrastructure and process experience to win projects from their competitors.

Voice BPO
Voice-based BPO companies like 24/7 Customer leverage their technology and their tools to win projects. Interestingly, Western customers want to use the analytical tools built by voice-based BPO companies to study things like the customer satisfaction rate and the time spent on call to efficiently serve their customers in America.

Other than technology based projects, Western companies prefer the Philippines over India. Sensing the trend, Indian-based BPO companies have opened offices in the Philippines. The companies 24/7 Customer and Hinduja Global Solutions (to do voice-based work)  have more people in Philippines than in India. Firstsource, Wipro, IBM Daksh, Aditya Birla Minacs, and Genpact  all have been hiring people in Manila.

Indian BPO companies are hiring
Indian BPO companies are hiring more people now than in the last couple of years. In the cities Mumbai, Delhi, and Kolkata BPO hiring was steady while Chennai, Bangalore, and Hyderabad saw declines in BPO hiring. Though the hiring slowed down by 24% in July compared to June, so far, in 2011 Indian BPO companieshave hired more people than in 2009 and 2010.


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