India losing global edge in BPO market

  • HT Correspondent, Hindustan Times, New Delhi
  • |
  • Updated: Feb 28, 2013 01:32 IST

Over the last five years, India has lost 10% share of the world's BPO (business process outsourcing) market to countries such as China, Philippines and Brazil, the survey said. The survey's observation has raised concerns for the $20-billion (Rs 1-lakh crore) domestic BPO industry.

"Countries such as Philippines, Malaysia, China, Egypt, Morocco Brazil, Mexico, Chile, Columbia, Poland and Ireland are emerging as attractive destinations for voice contracts, posing a significant threat to Indian firms," it said.

Outsourcing has become a national issue in many developed countries like the US and the UK, who are supporting the local BPO industry through various means.

Between 2005 and 2011, the annual average growth of BPO services was 69% in Philippines, 28% in Sri Lanka, 59% in Ukraine, 27% in the Russian Federation, 37% in Argentina and 35% in Costa Rica.

The Indian BPO industry needs to gear up to address challenges, the survey said, while calling for information campaigns to dispel fears about outsourcing in developed economies.

In terms of competition, though China faces challenges like language proficiency, it is making large investments to increase English proficiency.

China may eventually emerge as a threat to India, the survey said, adding, Philippines, which is the second-largest outsourcing destination globally, is also a serious competitor.


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