Canada becomes emerging destination for BPO industry

In the March 25th edition of India Today, an interesting feature on BPO industry in India has been covered. As per the feature, the BPO industry of India has fallen deep into the dumps with a lot of BPO jobs moving to other countries and alternate BPO destinations rising up.

The article attributes this shift to the costly manpower, poor infrastructure as well as insufficient language skills of the employees in the country. This has triggered the rise of several new BPO destinations. BPO destination Canada is one such emerging location which projects the possibility of a thriving BPO industry.

TV Mohandas Pai who is the former director of HR in Infosys stated that around 1 million jobs

in India have been lost to BPO destinations elsewhere around the world. The India Today states that around 75,000 jobs moved from India to Canada in the past five years.
Canada BPO

Why Canada emerged as a BPO destination?

Canada has emerged as a plausible destination for the BPO industry due to a number of reasons. The technology innovation that the country implements through the country’s infrastructure for research and development, people, opportunities and knowledge have brought in a significant amount of revenues for the ICT industry.

Canada has proved to be a prime location due to its proximity to US causing international companies to outsource work to Canada. Political stability, quality of life, similar business culture as well as good quality workforce are other factors which make the country a suitable location for outsourcing by US companies.

Two of the BPO hotspots in Americas now belong to BPO destination Canada- Winnipeg and Calgary. These two places have garnered the top spots due to their capabilities which help them support back-office operations, proximity to top markets, large labor pools etc.

Canadian cities share the advantages of low cost, top infrastructure, government incentives, linguistic similarities, cultural similarities etc. A.T. Kearney had rated the business environment in Canada as one of the best business environments and the topmost one in North America for offshoring. The country was rated third globally.

The corporate-friendly income tax levels also make the country favorable for outsourcing activities. Some of the outsourcing companies in the country are Microtelesoft, Outsourcing Center etc.

Indian companies outsourcing to Canada as well

Even NASSCOM has recognized Canada as an emerging destination for ICT-BPO companies in India due to which the organization has started its Canada chapter which already consists of 20 member companies. These companies have already invested in Canada.

The Nasscom Canada chapter aims at addressing the issues of the industry locally and serves as a platform where information sharing is possible. The downside is probably the large-scale job loss that Indians would be facing due to this tremendous shift.

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