"Economic recesion has hit the world with vengeance. But the industry which has thrived this adversity is the BPO industry. When costs of doing work in-house has increased in the companies abroad, they have started to outsource their business requirements, which in turn has become a blessing in disguise to us."
The global economic scenario goes haywire now-a-days. People frantically talk about economic recession with a ‘what-will-be-my-future’ sort of look in their anxiety-filled eyes.
Even Nasscom, the industry association, points out that the current fiscal crisis in the United States will adversely affect the Indian BPO/IT sectors as the clients from USA would be very vigilant in their unrestricted spending on outsourcing their projects.
But, imbibing the spirit of true ‘Indianism’, we are good at the art making positives out of negatives. So we are as quick as a squirrel to turn this crisis into an advantage for the BPO sector in the long run.
The advantages of Indian BPO industry in the present scenario is discussed in the article.
This global economic recession will compel diverse financial organizations to outsource more work to cut costs to a large extent. This will definitely boost the Business Process Outsourcing (BPO) from the financial services sectors abroad, with our estimated work inflow increased to 40-45 times the current market size over the next five years.
Today the Indian BPO is the most upcoming and mushrooming industry attracting the educated youth all over the country. Indian BPO workforce offers several advantages over their western counterparts both in terms of cost savings (low-cost labour) and availability of resourceful manpower.
The revenue generated by the BPO & KPO industry in India is estimated to Rs.1,160 crores and provides employment to almost 7-8 lakh people in the year 2007-08. The largest contributor to the Indian BPO-KPO export market in 2007 is USA with a lion’s share of around 61%.
The Everest Research Institute predicts that for India, being the hub of global outsourcing for financial services, the opportunity for global BPO will mount to USD145 to 165 billion for India based services, within the next five years. The outsourcing of BPO projects from the insurance sector will have a steady rise, about 12-15 times simultaneously, according to the report.
Banking sectors and other financial firms are undergoing significant cost-reduction pressure and are therefore planning to move jobs offshore.As I told you earlier in this article, Indians have the untiring spirit to rise from the ashes like the phoenix. Let this spirit kindle the minds of our people to rise up from the unrest and anxiety that looms around and to strive more to reap the best out of the worst.
Article by Rarima.N.S