India's BPO industry gears for challenge

Gartner's report predicts 25% slide in offshore outsourcing by 2007.

India, the uncrowned king of the BPO world, may be in for some rough ride with national and international studies pointing at competition from a range of countries including China, the Philippines, South Africa, Mauritius, Malaysia, Australia, Ireland and New Zealand.

HT Image

ASSOCHAM's second BPO Industry Confidence Survey identifies China as India's greatest challenge with 54.45 per cent of the respondents opining the sleeping giant would eat into India's share with its superior technological skills.

The latest Gartner Inc Research predicts a 25 per cent slide in Indian offshore business process outsourcing by 2007, a significant drop from the country's present majestic market share of 80 per cent.

But is the 3.8 billion Indian BPO industry geared up to face the challenge?

"I don't think these countries will surge ahead in the next two-three years. But we are aware of the challenge and should take steps to stay ahead of the pack," says Kiran Karnik, President, NASSCOM.

"Unless we diversify into other areas and improve quality of work and service line, the going may get a little tough," says Mahendra K Sanghi, President, ASSOCHAM.