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BPO: India to lead for another 30 yrs

As per a fresh study, India will maintain its low-cost IT skills leverage despite competition from other Asian nations.

india Updated: Jun 06, 2006 17:15 IST
Press Trust of India
Press Trust of India

Powered by its continuing dominance in providing low-cost IT skills, the great Indian BPO story continues unplugged despite the emergence of new competitors like China, Philippines and Indonesia.

According to the latest study on global outsourcing market, India will maintain its low-cost IT skills leverage in the offshore outsourcing market for at least another 30 years.

Global outsourcing advisory and research firm Everest said in its '2006 Global Sourcing Market Update' that the concerns related to sharp wage inflation and skill shortages leading to an adverse impact on India's offshore cost advantage were grossly exaggerated.

The US-based research agency said India's offshore outsourcing market is likely to maintain its low-cost labour advantage over the UK for at least next 30 years.

The country will also retain its low-cost wage supremacy over the US for at least another 18 years, the report added.

Along with its Asian peers like Philippines, India continues to aggressively move ahead with policies aimed at minimising the adverse impact of wage inflation, it added.

Value additions to the relevant workforces, both on quality and quantity fronts, along with development of more low-cost offshore locations, the report added.

After establishing its footprint in centres like Bangalore, Delhi-NCR, Pune and Hyderabad, the BPO industry is expanding into new and non-metro places like Jaipur, Lucknow and Chandigarh.

First Published: Jun 06, 2006 16:37 IST