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India’s BPO Industry Faces New Challenges

by: Sarah Joson

Friday, January 3, 2014 |

SharedServicesLink.com shared their dissertation on an article originally published at SiliconIndia.com which indicates that the Indian business process outsourcing (BPO) industry might be facing a slowdown.   

A report from research firm Gartner noted that even with the 13.3 percent growth which resulted to $34.4bn in revenue increase by the top five BPO providers in India, its future remains uncertain. Some of the reasons that result to projections for India’s BPO industry are termination of tax benefits, strengthening of the Rupee, and the rise of alternative outsourcing destinations such as the Philippines and China.

One of the main concerns of Indian BPO firms is that buyers are looking for other options nearshore. In fact, North American companies are seen choosing Latin America to set up operations.

The article also pointed out that India needs to find solutions to issues that may negatively affect the industry. These include political turmoil, power outages, and poor traffic management. Even the local accent and the market’s preference were identified as major game changers for India as a player in voice-based outsourcing.

Overall, it is still evident that with India’s track record and its position as a pioneer in the industry, new outsourcing players will need to work double time to be at par with the country. Gartner found Indian firms making significant changes with their offerings and processes, which shows that they are still ahead in the BPO space.

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