BPO or Business Process Outsourcing has historically been observed as a means for business entities to rule out cost and increase profit through labor arbitrage during the time that it applies to finance and accounting or IT. This business pattern point out to the rapid expansion of business centers of specialized service providers and function. The role of the different service provider is coming to an end while these models have proven to be fiscally and essentially sound all through the previous two decades. The end initiates by usual market drivers like emerging technology and increased competition but the fate of several IT-BPO service providers will be resolved by the overall services provided with their clients. It should be focus on their customers to achieve their goals.
According to NASSCOM, the overall revenue of Indian IT-BPO services is estimated with $88.1 billion in FY 2011 as 19 percent are coming from BPO. With the total revenue 33 percent are from local while export revenue have 76 percent. In FY 2011, the total employment estimated by 10.8 million, direct employment will reach 2.5 million and as much as 2.4 jobs will be added. For both export and local revenue, the approaching IT-BPO industry in India looks encouraging. From $37 million in FY 2005 towards $106 million in FY 2010 the size of global sourcing market has grown. In global market, India’s share was 55 percent in FY 2010 from FY 2005’s 49 percent. Compare to 45 percent in FY 2005, the India’s market share from BPO market has increased to 34 percent in FY 2010. While in FY 2005’s $12 million through $42 million in FY 2010 the revenue from global BPO exports has improved. The IT-BPO market is not invulnerable with the challenges that affects the global industries like in manufacturing, detail and construction. It remain vigilant and understand that constant market share is not given for Indian ITO and BPO oranizations, even if IT-BPO get some benefits from the market cycles that acts as support agent for their customers.
Based on regulatory shifts, price pressures and trends largely out of our control, market shares will constantly remain in instability. Competition is not the main threat to our outsourcing leadership position, it is present factor. ITO and BPO industry were built on relationship that allows service providers to associate their solution sets within the clients environment. they are more liable to develop business models around buzzwords at the cost of sacrificing customers centric service delivery. Realizing a significant ROI from previous solution commitments is superior to the formulation of future business cases for additional services as for the client. Within the framework of current outsourcing strategies such initiatives more than probably fall out of scope while new ideas and products are alluring. In the reality, some solutions needs intensive assimilation and administration with their existing framework. the service provider should listen to their customers in order to understand what the customer needs.
Their innovations will have no value for the customers, unless their researchers know what the outside world is and what is happening in the trenches said by the chairman of Infosys, N.R. Narayana Murthy. Differently, without a keen knowledge of each and every client business needs, product development and innovation would be meaningless. The core aspect of our success should remain effective investment in the customer relationship. IT-BPO providers should alter more resources to the customers relationship and their total experience. Those who understand these concepts will succeed. They will able to deliver value beyond the enterprise.
REFERENCES:
http://www.globalservicesmedia.com/Destinations/India/The-Changing-Face-of-Indian-BPO-Industry/25/18/0/GS110407429456
http://indiainfotechnews.com/?p=703
http://www.siliconindia.com/magazine_articles/The_Changing_Face_of_Indian_BPO_Industry-FWKC48463032.html
The Changing Face of Indian BPO Industry
