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Go4customer Blog

BPO Services In India : An Emerging Trend


India is a growing economy and is considered as one of the primary locations for the companies looking to outsource their back-office business operations. The country offers unparalleled services at reasonable cost, in comparison to other foreign countries.

As per the research conducted by Ernst & Young, India was ranked as the fourth-largest recipient of FDI. In 2012, the value of FDI inflow in India was about 5.5% of the total FDI across the globe. As a result, call center in India is projected to grow at the rate of 7% by the year 2017.

India is pegged at approximately 37% of the global BPO market. According to the industry experts, the $20-billion industry is expected to grow at 14%16% for the financial year 2014-15, owing to the exceptional transformational services.

BPO services in India started in the late 1980s. The factors that contributed to the popularity of the industry during that time were low offshoring costs and English-speaking workforce.

The industry rapidly grew post economic liberalization, as many companies began to establish and outsource their non-core business processes to service providers in the country. Call centers from India are known for providing unparalleled services to its clients.

Let me take you through some of the main constituents that have contributed to the growth of outsource call center in India:

1. Language Proficiency: The country has abundant skilled manpower, having good command over English as well other foreign languages.

2. Rising demand from companies: Demand for offshore services in India has been growing at the rate of 50% per annum. This is mainly accredited to the companies that have firmly established themselves in the market. Approximately 70% of the revenue in the industry is generated from contact centers, while 20% revenue comes from the data entry. Information technology generates the remaining 10% revenue.

3. 24X7 Customer Support: By offering timely and uninterrupted support, service providers facilitated foreign conglomerates to venture into the domestic market.

The above features have attracted long-term contracts from the clients, thereby contributing to the economic growth of the country.

However, domestic outsourcing business can further expand in the areas of web designing, HR, IT, and customer services. Thus, Indian companies in the future are more likely to become more open to outsourcing than before.

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