Finance @ Knowledge Zone


"BPO: Potential in Financial Services Sector"

- by Deepa Dubey *

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Part - VI

Outsourcing Advantage India: The Current Scenario

     1999    2004    CAGR
   Outsourcing & Processing Services
   Spending as per IDC		    $116
   billion		    $177.2
   billion		    8.8 %
   BPO market according to Gartner    $208
   billion		    $543
   billion		  

Right now India, as many industry experts believe shares a very miniscule percentage of BPO market share but would grow up to three to four per cent in next four years.

Some of the key drivers affecting the growth of the outsourcing market include: -

  1. Strategic outsourcing enables focus on core competencies

  2. Emergence of the rapid growth company

  3. Changes in industry landscape

  4. Pace of constant technological change

  5. Variable cost structure

  6. The ubiquity of the Internet

  7. Shortage of skilled labor

  8. Compliance with regulatory changes

  9. Increase in government demand

In the last couple of years, India has emerged as one of the preferred countries for outsourcing. According IDC's 2000 survey, among US firms outsourcing to India, the availability, outstanding quality, and affordability of India's highly skilled tech professionals underline the business advantages.

Many MNCs including General Electric, British Airways, Dell Computers, and many others have already chosen India as the base for their new global call centers. Financial institutions like Citicorp, Standard Charter and many telecom service providers and InfoTech companies have also tapped the potential market.

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*Contributed by -
Deepa Dubey,
PGDIM IXth Batch,
NITIE Mumbai.