The BPO industry operations in India have been the pioneer of outsourcing in the global business scenario. Foreign companies have been dependent on the Indian BPO industry due to its English capabilities and quality work carried out at low cost. In the past two decades, this industry has evolved into a formidable force with successful operations conducted in various domains.
Indian companies started out with back-office and low-end operations that involved voice and data functions centered around transaction processing and call center activities. The BPO industry operations in India have been built on this solid foundation, which has enabled it to withstand the tests of time. Western clients have been satisfied with the marginal cost of these operations and they have focused on getting more work done in India.
This has led to these companies outsourcing a large volume of work including bookkeeping and maintenance activities. Western enterprises have been able to gain sizeable profits since this mode of operation allowed them to concentrate more on high-end work, which in turn has enabled cutting down on costs. Thus the BPO industry operations in India were considered an allied force to the West in business operations.
However, there has been a stark change in this scenario in the past few years. The outsourcing sector in India has made rapid progress in carrying out high-end operations involving specialized areas. Hence the demand from the West for these functions has been on the rise. At present, almost all fields of specialized functions are being covered by the BPO industry operations in India. These range from typesetting, financial and banking services, software development, legal services, and health care to research and development.
The increase in high-end operations in the Indian outsourcing sector has benefitted western companies in many ways. They are now able to carry out a major chunk of their operations at a low cost, which has yielded a high rate of growth in terms of profits. In addition, all stages of operations can be run efficiently since the circle of focus has been drawn into the core area of business development.
The BPO industry operations in India have now evolved into a system, where it is considered capable of conducting consultancy functions. The changing nature of operations is reflected in the global recognition achieved by Indian companies such as Accenture, Infosys and TCS. The Indian outsourcing industry is now riding on the crest of high-value technological applications. The majority of the routine operations are automated, and decreasing margins for low-end work are testimony to the fact that the industry is all set to enter a new phase of development.
The Indian BPO industry is on a continuous progression up the high-value chain of operations. It remains to be seen whether the focus will be more on consultancy functions or other specialized domains. Either way, this powerful sector is poised to translate its knowledge base into a giant source of intelligent operations in the near future.