India likely to lose BPO marketshare by 2007: Gartner

By siliconindia staff writer   |   Wednesday, 08 September 2004, 19:30 IST
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HOUSTON: Lack of clear strategy and competition from countries like China will see India losing its marketshare in the BPO business from the current 80 per cent to 55 per cent by 2007, an international research firm has said. India's share will be whittled by a number of countries, which together will account for a 45 per cent share of the offshore BPO market by 2007, according to a report released by Gartner. Various countries like Ghana, South Africa, Mauritius, Fiji, Malaysia, the Philippines, Australia, New Zealand and China have now understood BPO's potential to create jobs and have put together integrated strategies to develop the BPO business, it said. India will lose business to some of these countries as it does not have a long-term plan for improving infrastructure and increasing the supply of quality employees for the BPO industry, said Sujoy Chohan, vice president and research director for offshore BPO at Gartner. The global offshore BPO market was likely to be around USD 27 billion by 2007. India earned about USD 2.3 billion last year from offshoring, according to Gartner. The BPO business requires English-speaking employees with a basic education - available in abundance in most countries, said Chohan. China is also likely to cut into India's share of the BPO market when its BPO business goes on stream in about three to five years, he said.