Will The Economic Recession Hit the Indian BPO Industry?

Most of the business process outsourcing companies in India offer specialized services at competitive costs. This is one reason that, large companies are increasingly outsourcing their work to India. After the economic meltdown in U.S, the Indian outsourcing industry has become deciding factor for the shaping of BPO services in India. A recent survey has shown that, out of ten companies in the west eight wanted to outsource their work to India.

Most of the developed countries like US ,the UK or Australia marked India as their obvious choice. The reason behind this, being the availability of high-end technology in India and the the number of tech savvy professionals in India. The other countries like China, Philippines and other south east Asian countries lack skilled professionals. They are considered to be second on the list as compared to India. These countries lack quality service,experience and intelligent workforce. India provides its clients with quality services without heavy investment and access to latest technology.

India also has wide range of skilled work force at very economical costs. Most of the companies in west save a lot on time, resources and infrastructure by outsourcing their non-core function to India. The BPO service providers in India have necessary skill and and expertise to handle such jobs. China despite of having a good IT penetration and supportive government policies suffers from a set back in its BPO sector.

The global economic recession has indeed affected the Indian BPO sector. According to Nasscom, the industry association has pointed out that this economic melt down in United States will adversely affect the BPO services in India. The clients in US would generate less amount of work to India.
On the contrary, this global economic recession will force many financial organizations in west to outsource their work to India to help them cut costs to some extent. This will definitely boost up the amount of outsourced work in India with respect to financial sector. The estimated work flow will increase to 40-45 times in the current market scenario over the next five years.

Today the Indian BPO sector is one of the most upcoming industries and attracting many educated youth all over the country. The revenue generated by the Indian BPO and KPO sector has been estimated to be Rs.1,160 crores and has provided employment to about 7-8 lakhs people during the span of last year. The largest revenue earned from the Indian BPO sector was by US in the year 2007 with a share of 61%.

The Everest research institute has predicted that, as India being the hub of global BPO services, the revenue earned will amount to USD145 to 165 billion for Indian BPO services, within the next five years. The outsourcing of work from the insurance sector will rise tremendously. Even the banking and other financial companies are undergoing through credit crunch and are planning to outsource their work to India.

There is no doubt about it that, BPO companies all over the world has established a reputation to provide cost effective and reliable services. Therefore, even during the recession period , it will be blessing in disguise for Indian BPO sector as the outsourcing of work would not cease from west.

Sandra Jones works as Business development executive for a leading BPO service provider in India. She has written various articles on Business process outsourcing, Call center in india, outsourcing and other topics related to it. related it. Her areas of expertise lies in strategic planning,organizational development and Sales Management.www.fusionbposervices.com