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BPO India - Present and Future

The BPO boom has helped developing countries like India in a major way by creating quality job opportunities in turn benefiting the Indian economy.

So what is it that makes Bpo India stand out in the crowd?

The Indian Edge

India in the recent years has shown huge developments in the areas of communication, power and software developments. India exports software to 95 different countries and stands second in the world as far as software exports are concerned. In addition India has ISO 9000, CMM quality certified software firms that have a reputation of providing quality services. India stands out of the rest in terms of better IT and technological infrastructure, low cost, skilled manpower that is readily available, friendly taxation and other laws, a stable government, a fast paced economy and quality certified software firms.

Where in India?

IT city Bangalore seems to be a hot destination for BPOs swiftly followed by similar technologically advanced cities like Chennai, Hyderabad, Mumbai, Delhi, Kolkata and Pune. All these cities in India are technologically advanced and have a good infrastructure with almost 278 quality certified BPO vendors.

Improving situations

India as a major outsourcing destination mainly handles low value added, activity related back office services such as data entry, call center, tele-calling, tele-marketing and so on; but the situation seems to be improving every day with companies moving up the value chain by entering knowledge services.

Companies such as Office Tiger and WNS Global are already moving in this direction with both companies setting up knowledge service divisions. This coupled with advancement in communication facilities and improving infrastructure is enabling India to enter into the high end services providing sector that will strengthen even further in the years to come enabling global players to outsource high end service based jobs to India.

BPO Business in India Key facts

Around 400 companies operate in India. Cost advantage - In spite of the rising elements of cost, Indian offshore operations provide cost savings of 40-50 percent A large pool of educated, highly skilled, English speaking manpower. Approximately 2.45 lakhsemployed in the ITES-BPO sector according to 2004 estimate by NASSCOM

Indian BPO market experienced maturity and consolidation during last 2 years, a result of numerous mergers and acquisitions taking place within the sector. A number of key International players (captive players) and third party service providers constitute this industry. Captive units account for more than 65% of the off shored work to the country. Indian BPO companies have the ability to ramp up their operations very rapidly. Together with cost advantage and the quality of work, the industry is growing at a very high pace. Employement Growth in BPO 2001-02 2002-03 2003-04 ITES-BPO 106,000 171,000 245,000 Source: NASSCOM

What is meant by BPO? A Definition.

Business process outsourcing (BPO) is the leveraging of technology vendors to provide and manage a company's critical and/or non-critical enterprise applications. Through the business transformation process of service-oriented transformation, which leverages the technologies and standards of service-oriented architecture, companies can increasingly leverage third party companies that act as business service providers. Business process outsourcing can use off-shore resources, but is not required.

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