Offshore Bpo: For How Long Can They Endure?

India has around 5%6% share of the total BPO Industry

, but commands 63% share of the offshore BPO component. This 63% is a drop from the 70% offshore development centres share that India enjoyed last year. The industry grew by 38% in India last year, but locations like Eastern Europe, Philippines, Morocco, Egypt and South Africa have emerged to take a share of the market.

China too is trying to grow from a very small base in this industry. And while the BPO industry is expected to continue to grow in India, its market share of the offshore operations piece is expected to decline. Important offshore development centres in India are Bangalore, Hyderabad, Kolkata, Mumbai, Pune, Chennai and New Delhi.

A drawback of the business, though, is the amount of risk involved. For instance, outsourcing an information system can cause security risks, from a communication AND a privacy perspectivesay confidential data of a North American/European company is freely available in the sub-continent, therefore it is NOT secure. It also leads to a change in the attitude of employees, which can hamper the growth of the business.

Therefore, in order to gain anything out of Offshore BPOs, we must manage our risks properly. There needs to be a structure to maximise a positive outcome. For that, we can set up what is known as a Business Continuity Management (BCM) model. It will help identify, manage and control business processes that need to be outsourced.

Although Indian service providers do possess skilled labour for Offshore BPOs, they cannot target lucrative BPO services until they acquire the necessary skills and industry knowledge. Most BPOs in India today are at the level of out-tasking, rather than outsourcing an entire business process. The industry may yet grow, but it is still an immature market. Thankfully though, it is mature enough to endure the hard times, if any.

by: Fanatix

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