|
According to Gartner, a market research firm, the size of the global BPO market by 2007 would be $173 billion, of which $24.23 billion would be outsourced to offshore contractors. Of this, India has the potential to generate $13.8 billion in revenue.
India has a
reliable telecommunication network, a large English-speaking
labor force, relatively very low labor costs, a government
supported technology infrastructure, and a complementary time
difference with the US. Large companies including Citigroup,
HSBC, GE Capital, and British Airways have opened vast call
centers and/or back offices in India, each employing between
2,000 and 11,000 employees.
The advantages of BPO in India include:
Infrastructure/
technology
-
Reliable
telecom infrastructure
-
Increased
privatization of telecom sector
-
Government
built and supported technology parks designed to meet
international standards
-
Power
backup systems in place —
ensuring 99.9 % uptime
-
Many
sites have undergone US data security audits
 Back
to top
Scalability
-
Large
pool of English
speaking and skilled labor force available (70% of graduates
are unemployed)
-
Privatization
of telecom sector increases the available bandwidth
-
Very
low employee turnover rate as compared to other countries
-
Middle
management is often imported from US/UK operations
Back
to top
Political environment
-
Central
and State Government are pro-business, investing millions of
dollars in IT infrastructure and colleges
-
Contact
center outsourcing businesses have multi-year tax exemptions
-
Largest
democracy in the world
Back
to top Costs
-
Productivity
levels match global benchmarks
-
Labor
surplus and falling telecom costs due to privatization and
additional capacity help ensure stable pricing
-
Significant
VC and private investments to-date
Back
to top
|
