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Go4customer Blog

Impact Of ITES/BPO Industry On Indian Economy

Posted by Sukriti Saini

In India, BPO and the software industry has significantly boosted the country's economic growth. The sector is creating jobs for millions of people across the globe. In fact, according to the latest stats, this sector provides direct employment to about 2.2 million people and creates indirect employment opportunities for about 8 million people. As per NASSCOM-

“The figures will reach 10 million by the year 2020.” According to Ernst & Young-

The industry is currently pegged at about 38% of the total outsourcing market worldwide. It is further expected to grow at a rate of 16% per annum by the year 2015.

Keeping in mind all these facts, we came up with this blog. Herein, we tell you how the ITES/ BPO industry has affected India and its economy. Let’s start.

BPO Transformation: Narrowing Down Geographical Barriers

India’s social stature improved –

The domestic call center has put the country's name on the global map. The sector has significantly contributed to the nation's growth by reinventing and transforming itself in a short span of time. The thirty-year-old BPO service industry has acted as a major driving force for uplifting the country's social and economic growth. It has helped in reducing several divides, which has separated the society for many years.

Steered the growth rate of Indian economy-

Call center services in India have made a sustainable, phenomenal, multifold, and long-lasting impact on the growth rate of the economy in last ten years. The sector has empowered the diverse human capital of the country by providing a distinct innovative platform. According to a study conducted by NASSCOM, the sector is in its nascent stage. It is constantly looking out for ways to evolve itself in order to keep ahead with the competitors.

More employment opportunities-

Because the ITES/ BPO industry is booming, more and more employment opportunities are being generated. This is eradicating the problem of unemployment in the country to a large extent. Even a person who has just completed his schooling can earn a decent amount. Also, those who are illiterate can work as guards, office boys in the offices.

Major outsourcing destination-

The industry has positioned itself as a major sourcing destination that sells high quality, cost-effectiveness, and trust by following process-oriented best practices. There was a time when call center operations were mainly recognized for unsophisticated back-end processes, such as data entry, application development, software development, transaction processing, and technical support services. Today, the segment has gravitated to providing knowledge-based IT consultation services.

Call Center in India: Gaining Global Market Share

Business Process outsourcing units are engaged in providing end-to-end business solutions to various businesses. It plays an important role in helping companies during the product development stage by providing customer feedback generated from customer surveys. Recently, third-party service providers have been acknowledged for playing an even bigger role by creating higher-end services like creating engineering design and analytical services.

Following call center outsourcing benefits act as a major driving force for increasing foreign direct investments in the country:

1. High-quality services- The quality is something that is never compromised. The targets are completed timely. The agents are monitored using the software. The latest technology is also used to improve and ease the working. In turn, the companies that outsource their work to India get access to the latest technology without spending much.

2. Skilled manpower- Indian companies hire skilled agents that already have traits like courtesy and empathy. Also, the human resource is given power training and their skills are honed. All of this is done at a cost much less than what a company would need to spend otherwise. Getting such a skilled pool of agents at such a low cost isn’t possible in other countries.

3. Cost advantage- The Indian BPOs work at almost one- fourth of the total cost that a company would invest in setting all of it in-house. That is why the operational cost cuts down significantly.

4. Manpower proficient in speaking English and other foreign languages - Indian population is the second-largest English speaking population in the world. The citizens are also showing interest in learning other foreign languages like German, French, and Spanish. This is also one of the big reasons for the outsourcers to choose India as their outsourcing destination for BPO functions.

Useful Article for Business Person: How to build a customer rapport via Business Outsourcing Companies?


Domestic call centers have marked their footprints in 52 nations, across 200 cities, and over 400 delivery centers worldwide. Our ten companies are listed on the international stock exchanges. Moreover, the Indian BPO industry addresses the requirements of Fortune 500 companies as well.

The above factors clearly indicate that the BPO industry in India is expected to emerge as a growth engine by 2020. It will not only have a significant impact on the country's employment and growth rate but will also reduce the fiscal burden by inviting foreign direct investments in the future.

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