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8.1 Trends in the Indian BPO Industry
Change is a constant factor .In fact it is rather difficult to keep track of the kaleidoscopic changes taking place in the BPO space-From call centers to transaction processing BPOs are now moving to high end activities like research, analytics, animation .A few trends that can be discerned are: -
8.1.1 Mergers and Acquisitions
This is the latest evolutionary factor in the BPO sector. M&As could be one reason why the BPO industry has achieved so much in such a short time. Well performing BPO companies have been targets for larger firms which are seeking to expand their services portfolio thereby strengthening their position in the market .The acquisition of BPO units gives companies an easy opportunity to enter the BPO field. These strengths can be in terms of vertical expertise, an established client base, greater geographical reach and also skilled and trained manpower.
8.1.2 Captive Vs. Third Party Units
Advantages of outsourcing to third party services
They are more cost competitive, however the third party players need to invest in marketing which is not the case for captive BPO units
The management load is reduced
They are a saving grace for small companies that cannot afford to set up captive units and yet want to outsource call center/back office related work
They offer a choice to the customers; companies can decide either to go for a third party player or set up their own captive unit
Advantages of outsourcing to captive BPO units
The organization has a flexibility to deploy the services of BPO employees at any location within the organization
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* Contributed by: -
Priyanka Ghosh & Alvika Derhgawen,
PGDIM, IM-11,
NITIE, Mumbai.
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