Fresh Challenges to Indian BPO

Hype of Indian BPO

India accounts for almost 50% of global Outsourcing activities. Many foreign companies consider India as a major destination for outsourcing activities as there are a lot of talented youth without jobs here. These people have the requirement and adequate standards in English that are necessary to enjoy a successful BPO career. Also because of the minimal requirements many students who do not have proper graduation backgrounds also prefer to work in the industry as it is the only job that pays handsomely for the work done by them with their minimal educational qualification.

Time of Hardships

However in recent times the Indian BPO industry has been facing a crisis situation. Many international clients especially well established UK and US clients of which Banks form a majority have withdrawn their outsourcing operations from India citing lack of Quality and technological backend provided by Indian BPO firms. Other countries like Philippines, China, Brazil and many more are outsmarting India in terms of preferred outsourcing locations.

New Threats

However a little known fact among Indians engaged ion the BPO industry is that they are facing stiff competition from an Asian country that no one would expect to come out strongly in any industry. The country under the scanner is North Korea, a war torn and under developed nation which is seen as a nation in turmoil by the international community. But the country despite being war stricken and brimming with poverty is producing talented workers who can be used effectively in the IT industry and especially in the BPO sector.

Research Reports have shown that the output of North Korean BPO workers are far more than their Indian counterparts and also has better quality than that of Indians. The country is emerging as a fresh threat to two main categories of the IT industry as far as India is concerned. They are BPO and Gaming Software coding. North Koreans have shown exceptional performance in both of them.

IT as a whole is safe

However North Korea is in no way a threat to the $70 Billion Indian IT industry as a whole. Recent restrictions and constraints imposed upon the nation’s software and gaming exports by the United States have resulted in the industry facing yet another crisis.

However the BPO arm is a force to reckon with. There have been rapid rises in the support offered to the IT industry within the country’s educational institutions. Many universities in North Korea have started to offer new courses in IT related studies. In all the nation’s youth are trying to develop the standard of North Korea despite the huge obstacles and challenges they face internationally and the major reason for their success as stated by many industry experts is that they are driven and motivated by survival rather than ideologies.

How to recuperate

This approach by North Korean Youth should be taken as an example or an inspiration by Indian aspirants who are now facing severe criticism from the international community for lack of quality.

If these warnings are not taken seriously by Indian companies then they may soon lose out to stiff competition and as everyone says prevention is better than cure. So we have to avoid this scenario by all means.




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