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News >> Technology >>
India to lead BPO for 30 years
By agencies
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Wednesday, 07 June 2006, 19:30 IST
NEW DELHI: The Indian BPO story continues unplugged despite the emergence of new competitors like China, Philippines and Indonesia.
According to a latest study on global outsourcing market, India will maintain its low-cost IT skills leverage in the offshore outsourcing market for another 30 years.
The report added that, India's offshore outsourcing market is likely to maintain its low-cost labor advantage over the U.K. for next 30 years. The country will also retain its low-cost wage supremacy over the U.S. for another 18 years.
Along with its Asian peers like Philippines, India continues to aggressively move ahead with policies aimed at minimizing the adverse impact of wage inflation, it added. The move to two-tier cities within the country and opening of delivery centers outside India is also helping the IT service providers to lever their costs.
Stephen Dunn, Managing Principal, Everest said, "Offshoring will retain a substantial labor arbitrage for the next 30 years between the UK and key low-cost destinations as such as India and Philippines.
There have been reports that, huge salaries being paid to the BPO employees will eventually eat into India's dominance on the BPO space, while further opening the space for new competitors like China.
So far, India has been among the major destinations for global offshore outsourcing businesses. As the U.S. and European companies continue to offshore their back-room operations and services-related businesses to low-cost overseas locations, Indian BPO industry is aiming for further market share gains in this segment.