BPO revenues are not growing like earlier times. Top tier IT companies are growing at an average of 20-25% this year (2010-11). Most analysts believe that the industry will not rise to the pre-recession growth levels at least for the next couple of years.
India pioneered the BPO industry two decades ago. Today, a lot of BPO work, particularly voicebased, is being shipped to countries like the Philippines and South Africa. The revenue ratio in India is around 43:57 between voice and non-voice services. Higher labour and setup costs in India have been cited as the major reasons why India is losing out.
Last modified: December 23, 2010
A recent IBM Global Locations Trend report reported that Philippines offers a similar business environment to India at lower operational costs. The Philippines will earn $5.7 billion for call-centre work this year from the US, Europe and Australia, compared with the $5.5 billion generated by India, according to the Everest Group .
The worst hit have been pure-play BPOs which are said to be losing orders to more integrated players that offer IT services as well.
Source: Economic Times