At present, the Indian BPO industry leads the global offshoring scenario with a major chunk of the market under its domain. It owns about 36% of the BPO global market. Highly skilled workers who are fluent in English and availability of cheap labor are some of the factors that attract Western business operators to India.
The growth rate of the Indian BPO industry has been fuelled by innovative pricing techniques set by call centers. Growth has been increased through change in prices, which is based on the company’s value.
The Indian BPO industry is expected to witness a continuous growth until 2005. There has been an increasing demand for services in the outsourcing sector. These outsourcing services include banking, accounting, customer management, and financial sectors.
The research company Gartner has predicted that the transaction volume will increase, in particular, with regard to customer data analytics, recruiting, payroll, accounts payable, and operations in knowledge process outsourcing (KPO).
Improved quality of service, use of innovative technology, and scalability are some other features that fuel the growth rate of the Indian BPO industry. The BPM industry has continued to expand at a compound annual growth rate (CAGR) of 13.4% over the period FY08-FY12, which indicates a healthy rate of development. It has now reached a net worth of USD 19 billion.
Positive aura appears on the horizon for Indian BPO Industry
Research conducted by CARE, a credit rating agency, shows that the Indian BPO industry is likely to grow at a double-digit rate during the period FY12–FY15. The industry’s growth is anticipated from the stimulation rendered by sectors such as analytics, legal process outsourcing (LPO), and big data. These high-growth segments have the potential for uplifting the outsourcing market to a path of continuous growth.
India leads the global KPO sector with 70% share of the market. There has been an increase in the contribution to KPO from the Indian BPO industry. Exports account for around 85% of the total revenue, which makes this business a dominant factor in the scenario. Customer interaction and support, which is the largest segment of the BPM industry, accounts for 42% of the total market. However, this sector is showing a lesser growth rate owing to competition from countries like Philippines and the focus shifting from voice to non-voice services.
While the future prospects appear bright, the Indian BPO industry is also awash with challenges pertaining to wage inflation, spiraling costs arising from rentals and transportation, and high rates of attrition. These are constantly squeezing profits, and it is anticipated that the industry will look for new playing fields wherein it can cement its success.