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India Losing BPO Foothold

by: Sarah Joson

Friday, August 2, 2013 | Outsourcing News |

Data from Indian software consultancy firm Nasscom shows that India is gradually losing its market share and has in fact lost 10 percent in five years to global competitors - majority of which are voice-based contracts.

Some of the factors that are fuelling India’s losses are language constraints and competitive talent from rival BPO destinations such as the Philippines, Canada, and Poland.

Meanwhile, the $13.3-billion business process outsourcing (BPO) sector of the Philippines grew 15.6 percent while India’s $20-billion BPO sector grew 8.9 percent.  

With all its losses, India remains as the global BPO leader for non-voice processes, while the Philippines maintains its top position in call center outsourcing.

Other countries that are seen as feasible options for voice contracts are Poland and Ireland in Europe, Chile, Brazil, Mexico, and Columbia in Latin America, as well as Malaysia and China in Asia.

India also faces challenges in supplying the demand for German, French, Spanish, Portuguese, and Nordic voice support services.

According to Salil Dani, Practice Director for Global Sourcing at Everest Group, the Philippines outpaced India in terms of full-time equivalent (FTE) and revenues. The former is said to have better service and is preferred for processes that rely on the English language.


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