Indian BPO market challenged

Published by rudy Date posted on July 24, 2010

The Indian BPO scene is ably challenged from different frontiers. The primary competition in the call center industry that they are facing comes from the countries like Philippines and those in Latin America and Africa. What makes these countries challenge the domination of India in the business process outsourcing industry?

India has been traditionally known to be the preferred destination in business outsourcing work for companies in the developed countries. The majority of the projects are still earmarked for the Indian call centers. However, if you go by the International Labor Organization (ILO) findings, you will begin to know why their rule is being challenged.

The ILO has specified that the BPO market in the Philippines is growing at a much faster rate than their Indian counterparts. In fact, if you take the last six months or so into contention, the Filipino call center market has grown by about double the rate of that in India. What brought about this spurt in growth? There are some reasons that made it possible for the Filipino call centers to stand up and be counted. Let’s take a close look at these reasons.

One, the Indian telemarketing scene is saturated with projects. So, the cost of getting telemarketing services done in Indian call centers is getting expensive. The primary aim of business process outsourcing is cost cuts. That’s the big draw. If the telemarketing company in India cannot provide them with the needed cut in cost, the business firms will definitely be looking for some alternatives.

This is especially true for new business ventures and start-ups. They don’t have the money to pay for expensive telemarketing calls. They will choose to get their work done in Latin America or Africa where the telemarketing business is not so competitive. That’s how India loses out.

Two, the quality of the call center services in countries like Philippines and Kenya is now at par with the best in the world. A couple of years back, the business firms would be hesitant trying out these call centers for their work just on one simple reason: they didn’t trust the quality. That is part of BPO history now! The telemarketing sector in these countries is well developed and thriving with fresh, exciting talent.

There is an upsurge of activity to get the quality ahead of the quantity. The call center planners of these countries know that whatever projects they take on at this stage is a show-case of their expertise and talent. If they are not able to back themselves and make that favorable impression, there is no way they will get a steady stream of projects.

Three, the exposure of the telemarketing services of these zones in the BPO world has gone up significantly. You find them attending call center discussions and seminars at global platforms. They are promoting themselves on networks that bag the telemarketing projects. In short, they are making the right noises and make every networking contact count. If they can hold up their quality in telemarketing services, it won’t be long before they breathe down the necks of Indian call centers.

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