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Serious challenge to the sustenance of Indian BPO leadership in the coming years

India’s formidable ranking in world’s BPO market is in for critical appraisal as eight overseas nations are extensively updating their technical skills to corner a large chunk of Business Process Outsourcing share in their countries, thus posing a serious challenge to the sustenance of Indian BPO leadership in the coming years.

In an analysis carried out by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), it has been found that Philippines, China, Mexico, Ireland, Canada, Russia and South Africa will emerge great centers for world BPO scenario in the long run because of their ongoing extensive focus on improving their technical skills.

According to ASSOCHAM, the aforesaid nations will pose realistic threat to India’s dominance in the BPO industry in the long run on account of certain advantages that they enjoy over India.

In case of Phillippines the number of skilled and english educated workforce is increasing manifold, besides the country has already put in place a good number of telecom infrastructure and familiarity with american work culture to give it an easy access to corner the BPO supplies from advanced economies.

The constant growth of China on the infrastructure front and rising economic affluence has made it a good destination for non-voice processes. “This will be area in which the competition will intensify between India and China in the next 5-6 years. Moreover, due to widespread curriculam changes that have made English language mandatory at the school to college levels, China may be able to match India’s edge of large English speaking, lost cost manpower in the next 15-20 years, the ASSOCHAM analysis concluded.

Further, Mexico and Canada have advantages over India in terms of their cheaper proximity to US and provide for good infrastructure.

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