Indian BPO Industry – Over 15% Growth!
India’s business process outsourcing (BPO) industry is forecast to increase its revenue this fiscal year by 15 percent to 16 percent, officials of the National Association of Software and Service Companies (Nasscom) said on Wednesday. Revenue increased by 6 percent in the last fiscal year ended March 31, 2010, despite the recession, according to Nasscom.
But there are still serious challenges ahead for the Indian BPO industry, including the crisis in the Euro zone in Europe. As business picks up, there is also concern that hiring and retaining top quality staff may be a problem for the BPO industry which includes Indian outsourcers as well as wholly owned subsidiaries of global services companies, and companies, including banks, that run their back offices from India. Before the recession, competition for staff had led to a wage spiral. By March this year, staff attrition was already 8 percent to 10 percent higher than a year earlier, said Som Mittal, president of Nasscom. Wages could rise by 10 percent to 20 percent by next year, Nasscom said.
There is also concern among Indian outsourcers about increased protectionism in the U.S., a key market. U.S. Senator Charles E. Schumer, announced earlier this month that he was introducing a bill that would help stem the flow of American jobs being outsourced abroad by imposing a per-call excise tax on companies that transfer domestic customer service calls to foreign call centers. Schumer’s legislation also requires that companies that transfer calls to foreign call centers disclose to the caller that their call is being transferred to a particular country.
Calls transferred to India from the U.S. constitute a very small proportion of the business of Indian BPO companies, and the bill if passed will have no impact on Indian BPO companies, Talwar said. While there is understandably concern in the U.S. about saving jobs, protectionist measures can at best be short term in effect, Mittal said. India’s BPO industry currently employs 1 million staff, while also providing indirect employment to 3.5 million people. The country’s BPO revenues have however been growing faster than employment, as companies have focused on more sophisticated services.
As demand for BPO services is booming, including from the domestic market, there is also greater interest in setting up service delivery centers in rural areas, Mittal said. The model, which has been tried so far mainly by NGOs, is now attracting outsourcers as well. About 60 percent of BPO employees in the cities currently come from small towns and villages, according to Nasscom.
Via PC World
Connect With Us
Related Posts
- Real Estate Act comes into effect: 10 things you need to know about new law ( May 4, 2017 )
- Expats Living in Comfort – Hyderabad, India ( May 4, 2017 )
- MNC queue to Hyderabad grows longer; JP Morgan & IBM look for office space ( June 22, 2016 )
- An Apple in Hyderabad’s IT Garden: CEO Tim Cook’s big announcement Today ( May 19, 2016 )
- Hyderabad May get Disneyland Park ( April 22, 2016 )
- Indian Office Space Absorption Up 11% in Q4: Survey ( April 13, 2016 )
- Cognizant plans to add 8,000 people at Hyderabad facility ( March 9, 2016 )
- Ranked 139 in world, Hyderabad is Best Indian City to Live in ( February 24, 2016 )
- The Platina – Exclusive Commercial Space, Hyderabad ( February 19, 2016 )
- Apple, Inc set to open new $25 million Tech Center in Hyderabad, India by June ( February 16, 2016 )
Recent Posts
Recent Comments
Archives
- February 2018
- October 2017
- May 2017
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- July 2011
- June 2011
- May 2011
- March 2011
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- May 2010
- April 2010
- March 2010
- February 2010
Leave a reply