The Future of BPO Industry in India
Posted: Sep 29, 2019
In recent years, India has placed a significant foot in the BPO industry. The major success is from India because of the availability, efficiency, and low cost of skilled manpower.
The BPO industry has marked a substantial presence in the industries namely, retail, banking, healthcare, communication, insurance and many more. So far, the popularity of the industry is due to following reasons:
- Higher competency
- Qualified professionals under one roof
- Faster turnaround time
With the rising trend of business process outsourcing services in India, it suggests the educated mass and demographics that is pulling the companies towards outsourcing/BPO industry. But it pops-up another question, that is, what is the next thing in the line of outsourcing. It is quite clear that business scenario is going to change, but how far it will affect outsourcing.What will Continue to Affect Outsourcing Industry?
Pricing doesn’t seem to be an issue because the service seekers are looking for an effective solution. They seek work efficiency and quality rather than just low or stabilizing pricing.
virtual assistant services and back-office operations are anticipated and welcomed whole-heartedly with the changing times. The reason is improved productivity in businesses, reduced errors, and improved cost.
It is required for companies to make profit apart from selling the products and services. It will be possible only through the process of outsourcing; the companies will continue to turn up profit by saving from paying to the expensive local workforce.Why has been India Winning in The Outsourcing Industry?
It has been observed that a lot of Asian countries are trying to put up as equal or better than Philippines for outsourcing. Since Philippines has a low-cost factor, it has been able to become the preference of many companies who aim to outsource. As a matter of fact, India started with low cost outsourcing country, but the scenario has changed. The BPO industry of India is maturing; thus, the workforce demands more wages. Yet, the country has retained its leading position for call center services because it is able to do justice with the changing needs. The credit also goes to the commitment and efficiency that makes India stand out from the crowd.
When companies aim to outsource, they don’t just look for cost-effectiveness but also improved productivity, skilled human resources, and effective communication. And, India due to the excellent education and population became an superb option for front end and back end outsourcing.
In addition to it, the BPO market is becoming more knowledge-intensive and India having its skilled workforce as MBA’s CAs, Lawyers, and Engineers contribute a lot to strengthen the industry. The BPO companies are expanding to Tier II, and Tier III cities as skilled workforce exist beyond these cities as well. Here, the cost can play an advantage as the services cost is low for the towns with less expenditure of living.What are the Major Challenges Faced by Outsourcing Industry of India?
Companies will not be able to last longer in Tier I cities. They will branch out the outsourcing department to the Tier II and III cities due to wage rates.
Though India established itself as leader in outsourcing but it might not last for long term. Other Asian countries like Malaysia, Indonesia, Singapore, and Thailand are trying hard to become an alternative preference for offshore outsourcing.
India does not have an imposing IT infrastructure when compared with other countries. It is one area where India needs to combat and match up with the competitor countries.Closing Thought
Only if India can sustain these factors, then alone it will stand up as the leader in the BPO industry. Though India stood as a leader due to low cost and work efficiency and commitment, we can’t deny the impressive reasons due to which others are trying to become the preferred outsourcing destination. With other countries trying to ripe off India, it is important to work hard on the above factors and sustain as a leader in BPO industry.
I have been writing for Fusion Business Solutions for about two years from now. Fusion is an outsourcing company focusing on virtual assistant services.