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Changing Dynamics Of Indian BPO Industry

Posted by Varsha Bhagchandani
BPO_outsourcing

India is the most preferred destination among the companies looking for expanding their business and outsourcing their non-core business operations. BPO industry in India has grown manifold in terms of size and revenue. This exceptional growth is mainly attributed to unparalleled services provided by the service providers. Other factors contributing to growth include cost advantage, strong near shore presence, and strengthening cultural and language capabilities.

Indian BPO sector is currently at an inflexion point and is ready to enter the next phase of maturity. There are significant untapped opportunities across various segments in the industry. Moreover, the clients are shifting their focus from short-term advantages like cost savings to long term advantages of strengthening their relationship with the customers. This has become an integral part of their corporate strategy.

The industry is leveraging benefits from its strategic geographical positioning, established delivery competencies, and economies of scale. Below are the factors contributing to the evolution of BPO industry in India:

1. Supply-side dynamics: The supply side of offshore business in India has become more competitive. This is because, post globalization, more businesses are expanding their operations in the country.

2. Changing Pricing Models: BPOs in India have moved away from the traditional fixed pricing models to variable rate pricing model. Thus, the clients have flexibility to pay according to the services availed.

3. Geographical Diversification: Most of the service providers have diversified their operations by penetrating into Tier II cities. This not only reduced their infrastructure cost, but also increased their reach to large talent base.

Hence, the changing trends of BPO industry in India have resulted in strengthening relationship between company and service provider. BPO service providers have not only reduced overhead costs of the companies, but have also supported them in focusing on their core competencie.


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