Prospects of BPO Services in India

BPO industry in India has witnessed significant growth over the years. This is attributed to globalization and reduction in tariff barriers. BPO service in India has improved the country’s brand equity in the international market. The service providers have an unparalleled image of providing excellent business solutions with cost advantages by using advanced technology.

BPOs leverage technology vendors for managing and providing critical as well as non-critical enterprise applications. More and more companies are outsourcing various services to third party service providers. This saves their time and money, and hence they are able to focus on their core competencies.

Customer support service in India has matured over the years. BPO service providers have trained and skilled employees for handling customer queries. Thus, this sector is successful in influencing the customer’s decision through their established delivery potential.

BPO industry in India is forecasted to grow at the rate of 5% - 7% by 2017. The factors contributing to the growth includes:

· Increase in demand from businesses: Demand for BPO services in India has been annually growing at the rate of 50%. This mainly comes from companies that have established an important place in the Indian marketplace.  About 70% of the revenues of BPO industry in India generate from contact centers, nearly 20% of the revenue comes from data entry, and remaining 10% of the revenue comes from information technology.

·   Cost advantage: Most of the companies outsource their services to Indian BPOs due to significant cost advantages like training cost of employees, overheads cost, technology and its maintenance cost, and infrastructure cost.

·     24*7 customer support: This is one of the important reasons influencing the growth of BPO industry. By providing timely and continuous support, BPOs have allowed foreign businesses to venture into the country and aid them in making the best player of the business. This further helps the growth of the Indian economy.

·     Language Proficiency: India has a good cluster of people having command over English and other foreign languages.

·  Abundant human resources: Another competitive advantage that India has over other countries is the availability of a large population of computer literates.

The above factors indicate that India is expected to become a global BPO hub by the year 2015 and client base of Indian BPO companies will grow by manifold.