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Operations Article | Key Operational Challenges in the BPO-ITES Industry

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Key Operational Challenges in the BPO-ITES Industry

- by Ankur Pawa & Nishant Choudhary *

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Page - 3

Introduction

The Indian ITES/BPO industry has achieved spectacular growth in the past few years. Currently the size of the industry is estimated at $2.3 billion and this figure is slated to reach $21-$24 billion by 2008! The growth and success of this industry is a result of several differentiating factors. A global competitive analysis of BPO service offerings done by XICOM highlights the key differentiators offered by the Indian vendors in terms of skilled resources, time zone advantage, high cost arbitrage and low geo-political risk

To sustain this growth and success the Indian ITES/BPO industry needs to tackle several strategic and operational issues. The strategic issues that need to addressed are avoidance of price war, acquisition of domain knowledge, growing from low margin businesses (typically voice based) to high margin businesses (analytics, financial management etc) and leveraging existing IT offshoring services for cross selling to existing clients.

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* Contributed by -
Ankur Pawa & Nishant Choudhary,
Indian Institute of Management,
Lucknow.


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