Painting a pessimistic picture, the industry is being heavily lashed by the appreciation of rupee, end of tax benefits and rising attrition rate. Emergence of china and Philippines is also one among the major challenges that smites BPO sector. Future of Indian BPO’s seems cloudy with more companies opting for nearshore outsourcing, where the BPO services for North American companies are set up in nearby Latin American countries rather than remote locations such as India or China. The frequent power outages, poor traffic management and political instability all take its toll on the operations of BPO firms. Many companies in U.S. and Europe have trimmed their budgets thereby reduced their outsourcing exposure significantly. Finally, the strong accent that Indians exhibit has pulled down the country on the rating scale for preferred outsourcing destinations. "India as a delivery location is still challenged by English being spoken with strong accents, which can sometimes be hard to understand," says Cathy Tornbohm, vice-president, BPO research, at Gartner, based in the UK.

Amidst these tumultuous conditions the evolution of globalization and the emergence of social and mobile revolution are delivering incremental and sustainable result in the vertical. Gartner pointed out that Indian firms made “significant strides” in developing industry-specific BPO services through acquisitions and organic growth. According to the research firm, the top five Indian providers grew 13.3 percent last year, hitting $34.3 billion in revenue. The information that Indian companies clocked growth higher than that of their global counterparts certainly provides a ray of hope to the BPO industry.
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