BPO Sector in India Outperforms IT Services in Growth

Top BPOs in India

Top BPOs in India

The BPO sector in India is seen racing ahead of the IT sector in terms of growth and revenue. There are a number of reasons behind the growth of BPM services in India. India has a talented and knowledgeable work-force capable of handling tasks well. The infrastructure facilities and business sophistication are also reasons cited for the BPO boom in the country. India is one among the most favored BPO destinations in the world and features in the top 100 list of favored BPM destinations in the Tholons’ 2013 index.

A number of companies abroad are now outsourcing their business to India in bulk compared to just parts of businesses earlier. Barclays, a banking and investment major from United Kingdom is reportedly thinking of outsourcing all its back-office jobs to India.

A recent study shows that the Indian BPO sector surged high in terms of growth contrary to IT services, which is struggling even now to recover from the financial crisis that happened in 2008.  The nature of BPM sector in India is changing rapidly and is seeing a great shift from the traditional processes to high-end skill-based and knowledge based work. Clients now are seen to be showing great interest in investing in BPOs than in IT services.

BPO wing of Indian companies rake in more revenue

The December quarter saw BPO companies soaring up high in terms of revenue. A top IT and BPO services provider, Infosys saw an overall revenue growth of 6%, while its BPO arm grew by 41%. On the other hand, Tata Consultancy Services saw a growth of 22% with its BPO wing registering a growth of 39% in monetary terms while HCL Technologies registered revenue of 4.4% from the BPO sector in its $4.4 billion total sales.

The Indian BPO market is still small compared to IT sector with only Rs. 84,800 crore in export revenue and employs around 900,000 professionals. However, complex jobs are handled and this has provisionally increased the potential of the BPO sector.

There is also a strong shift in the nature of demand of the clients. Clients today are particular about a focused skill-set and industry based knowledge. The BPO sector in India shows immense potential and Gartner, a technology research firm projects a global growth of $176 billion by 2016 in the BPO sector.




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