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India to remain the preferred choice for outsourcing services, says D&B


According to a Dun & Bradstreet (D&B) Study, though certain issues have caught the industry off-guard, India is still expected to remain the preferred choice for outsourcing services and outsourcing would remain strong in 2009 too. Over the next two years, a high proportion of companies (45.7%) expect revenues for the ITeS-BPO sector to grow by 20-35% annually.

The study also shows that Tier II cities are making their presence felt in the ITeS-BPO industry. Pune and Gurgaon were placed at fourth and fifth place respectively as compared to sixth and seventh last year.

While the ITeS-BPO industry is bound to be impacted by the financial crisis, firms have taken measures to mitigate some of that risk. The industry has started providing services to a wider set of verticals, thus reducing their exposure to any one vertical.

While conventional BPO services continue to form a majority of the total services offered by the surveyed companies, this year’s study has seen conventional BPO services drop by almost 10 per cent from last year.

On the other hand, service lines such as KPO, LPO, EPO and eLearning have increased its share considerably. Margins are substantially higher in these services and with companies keen to diversify, revenues from these services are bound to increase.

India continues to be the top offshoring destination, says Gartner ...Read more

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