August 24, 2011: Indian BPO companies are breaking barriers and competing on a global frontier by opening up delivery centers in the overseas markets. This seems to be a new trend emerging out in the Indian BPO space.
Today Infosys BPO, WNS (Holdings) Ltd, Aegis Ltd and Firstsource Solutions Ltd are incubating centers in US and UK. To them the foreign market has become an exciting option. Companies such as Infosys are rapidly setting up on-shore centers in Atlanta, US and UK. Top executives of these companies gave plenty of reasons for this new approach.
The current shift is considered to be on the basis of prevailing benefits for the companies as such and increasing demand in the quality of service provided by the Indian BPO companies. In the current scenario where identity theft and updated rules and regulations are becoming hurdles for the smooth functioning of companies, opening new centers in the onshore market emerges to be a good option. The trend of providing service from a low-cost region has gradually changed.
The reasons for adopting these strategies might be vivid. Thorough analysis and evaluation made by clients before deciding on picking the service of any particular service provider has become a crucial criterion for the companies. Today most of the European and US companies are looking for onshore or near shore service providers rather than going for offshore service providers. High employee turnover rate and an annual increase in wages not less than 15% are the risk factor at this point of time for many companies operating from the offshore market.
Setting up new units in overseas will help Indian BPO companies to deliver high quality service especially in human resource and banking related business solutions provided. Moreover this strategy will help the companies in offering services which is quite difficult to deliver from the offshore market. Problems faced in the offshore market such as government regulations, trade union issues, employee absenteeism and absconding will be reduced.
Many survey and research conducted by institutions has ranked top Indian companies as leaders in the global BPO industry. It could be anticipated that the recent strategy adopted will leverage the mid-sized challenger companies to reach the leading position in the long run. The companies are anticipating high returns and huge profit from the fresh units in onshore and near shore market. The identity created by Indian BPO and IT sector has also influenced many other players into the industry.
Infiltrations of the Indian BPO companies into the foreign markets have opened up a new dimension in the way BPO firms operate.