Case3 The Indian Business Process Offshoring Industry
Global business process offshoring (BPO) has been becoming more popular in the last two decades. Increasing cost pressures made Western companies start to offshore IT activities to developed economies, which offered them cost attractiveness. One of the countries with the most developed Offshoring industry is India accounting for 30% of the global BPO Industry.
* Global business process offshoring (BPO) industry is $50billion in 2012. * India accounts for 30% of the BPO Industry
* BPO sector in India employs over 4.5 million people
* India has an increasing amount of English speaking graduates. * BPO evolution
1. Routine IT activities (testing, coding)
2. Knowledge intensive IT business process
3. Specialized IT (R&D, product design, analytical research) **New trend- firms invest their non-core captive centres to the BPO in exchange for better outsourcing rates in long terms * Main companies: Genpact, Tata Consultants Service, WNS Global Services, Wipro BPO, Infosys BPO, Mphasis, HCI Technologies and Sparhs.
* Fiercely competitive and increasing growing industry.
* Indian BPO serves to most of the Fortune 500 companies. * Saving over $100 million every year per company by outsourcing to India. * Global recession has contributed to Indian BPO growth to Europe, Asia and Latin America – e.g Global delivery centre in Buenos Aires * Huge opportunities for growth in the domestic market (big government projects), due to the growth of the Indian economy despite the global recession. * Increasing focus on domestic markets to increase their skill sets (opportunities in the utilities industries: oil, gas, etc)
1. How would you characterize the competition in the Indian BPO industry? Indian BPO industry is fiercely competitive and increasingly growing. The following table illustrates the degree of competitiveness of the...
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