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Rivals Force Indian BPOs to Establish Global Delivery Centers

by: Karen Cayamanda

Tuesday, June 22, 2010 | Outsourcing News |

As offshoring destinations like the Philippines gain traction and onshoring activity in Latin America picks up, business process outsourcing (BPO) companies in India are forced to focus on global delivery models and set up new overseas delivery centers.

BPO firms shift to nearshoring

Nearshoring is also picking up. According to Deepak Patel, CEO, Aditya Birla Minacs, a BPO firm needs to have both nearshoring and offshoring solutions in order to stay competitive.

Industry experts said this shift to near-shore option can be attributed to the fact that from low-cost business models, new ones now focus more on value instead of cost. This is another factor that pushes Indian BPO firms to set up new global delivery centers. “The next-generation business models are no more about cost, but value. Just because something is cheaper does not mean it has value,” Patel said.




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