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BPOs outpouring

Aniket Kavathekar
Saturday, April 30, 2005
Aniket Kavathekar
History repeats itself and same trends resurface in different forms. If India was known for providing knowledge to the world in ancient times, in this era the nation provides intellectual outsourcing services. Outsourcing draws a healthy $17.2 billion to the Indian shore, 43 percent of global revenue, and Business Process Outsourcing (BPO) is still spreading across Indian cities like a wildfire.

India presents a very good value proposition for outsourcers as they can reduce the process costs by 40 to 60 percent and labor cost arbitrage is likely to exist for the next 20 to 30 years. Being outsourcer’s choice helps to focus on core activity, reducing costs, improving operational quality, achieving high productivity and removing business risks.

The nation facilitates world-class technology and efficient delivery mechanisms to ensure clients receive cost effective solutions for all their BPO needs.

Indian universities and colleges assist by producing two million graduates annually. Indian universities produce 120,000 engineers as opposed to 63,000 in the U.S. The nation clearly leverages its English speaking and IT savvy workforce and offers the services at half the market cost. Lower establishment costs, improving telecommunications infrastructure and government support for IT and BPO industry have only intensified the rush of multinationals setting up their offshore centers.

Big cities like Gurgaon, Bangalore, Chennai and Kolkata are at the race’s forefront while tier-two cities like Pune and Kochi are quickly gaining pace.

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