Strengths
- Highly skilled, English-speaking workforce.
- Abundant manpower
- Cheaper workforce than their Western counterparts. According to Nasscom, The wage difference is as high as 70-80 percent when compared totheir Western counterparts.
- Lower attrition rates than in the West.
- Dedicated workforce aiming at making a long-term career in the field.
- Round-the-clock advantage for Western companies due to the huge time difference.
- Lower response time with efficient and effective service.
- Operational excellence
- Conducive business environment
Weaknesses
- Recent months have seen a rise in the level of attrition rates among ITES workers who are quitting their jobs to pursue higher studies. Of late workers have shown a tendency not to pursue ITES as a full-time career.
- The cost of telecom and network infrastructure is much higher in India than in the US.
- Manpower shortage
- Local infrastructure
- Political opposition from developed countries
Opportunities
- To work closely with associations like Nasscom to portray India as the most favoured ITES destination in the world.
- Indian ITES companies should work closely with Western governments and assuage their concerns and issues.
- India can be branded as a quality ITES destination rather than a low-cost destination.
- $69 billion ITES business by 2010
- $97.5 billion IT (consulting, software solutions) market by 2010
Threats
- The anti-outsourcing legislation in the US state of New Jersey. Three more states in the United States are planning legislation against outsourcing Connecticut, Missouri and Wisconsin.
- Workers in British Telecom have protested against outsourcing of work to Indian BPO companies.
- Other ITES destinations such as China, Philippines and South Africa could have an edge on the cost factor.
- Slowdown of demand
Responses
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- Guest 8 years ago
India’s BPO industry has evolved and matured to present higher-end services that require judgment-based analysis and domain expertise, rather than function-specific, rules-based performance parameters alone. As service providers strive to offer end-to-end services, we see BPO falling into different segments. At one end of the spectrum is the traditional rules-based transactional outsourcing; while at the other end is judgment-based transaction processing and full-service business process outsourcing.
India has won its spurs as the world’s outsourcing destination of choice. Currently the country has a commanding share of the global outsourcing market. India is undoubtedly the most favored IT/BPO destination of the world. This raises the question why most of the big MNCs are interested in outsourcing their operations to BPOs in India. The answer is very simple- India is home to large and skilled human resources. India has inherent strengths, which have made it a major success as an outsourcing destination. India produces the largest number of graduates in the world. The name of India has become synonymous with that of BPOs and IT industry hence the name BPO India.
Besides being technically sound, the work force is proficient in English and work at lower wages in comparison to other developed countries of the world. India also has a distinct advantage of being in a different time zone that gives it flexibility in working hours. All these factors make the Indian BPOs more efficient and cost effective. In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are looking to BPO India.
A subset of outsourcing, Business Process Outsourcing (BPO) involves contracting the operations and responsibilities through a third party service provider. From the last couple of years, the BPO industry has evolved as the most substantial sector in the Indian market. India has emerged as the most favored location for all Bpo services across the globe. This has accelerated the Indian economy to the heights, progressively boosting the statistics depicting the growth in the years to come and it has been however forecasted that by 2020, more than 80% of the world of business process outsourcing services will be served by the Indian companies. Marked as the best place to attain superior quality services globally, the BPO industry is strengthening its foundation in India. http://phykon.com/