Indian BPO industry is facing very significant challenges since beginning of year 2012.
According to estimates the industry may earn less than $16 billion this year (that makes it a slow growth rate of 12%).
Rival BPO industry such as that of PHILIPPINES however is projecting its growth rate to be of around 19%in 2012 and has already become the NUMBER 1 in voice operations pushing India to number 2 slots.
According to estimates, in the last two years about 75000 seats that could have been added to Indian call centers went to Philippines.
WHAT IS WORKING AGAINST INDIAN BPO INDUSTRY?
1) Manpower in India is becoming costlier, with 10% to 15% rise in salaries and training expenses for the BPO industry.
2) There is a deficiency of skilled workforce in India when compared to countries like Philippines.
3) The attrition rate in India is double of what it is with rivals.
4) Increasing pressure of US companies to keep their jobs within the country
5) The present government has not done BPO any favor by withdrawing tax incentives under the Software Technology Parks of India Scheme and imposing minimum alternative Tax on Special Economic Zone.
6) Lack of infrastructure
HOW THE INDUSTRY PLANS TO DEAL WITH THE CHALLENGES?
1) Companies like GENPACT and EXL have reported a significant rise in revenue by moving up their value chain.
2) Indian BPO industry is moving away from standard and tested procedures to more intellectually capital oriented work. There is more focus on innovative concepts like cloud computing and bundle business process with technology.
3) Industry is moving away from VOICE PROCESSES to newer platforms.non voice processes are getting increasing focus.
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