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BPOs will have less impact of slowdown than IT firms
By siliconindia
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Tuesday, 18 November 2008, 16:19 IST |
1 Comments
Bangalore: BPO firms' involvement in facilitating day-to-day operations of the companies is expected to reduce the impact of global economic slowdown on BPO sector when compared to the IT sector. Most of the BPO companies are now offering services like payroll processing, bill/invoice processing, loan processing, insurance claim processing, equity research, business analytics, merchandising, financial planning and analysis, reported The Times of India.
These are operating expenses for the client company and the return on investment (ROI) for the BPO is mostly real-time. Whereas, a large chunk of IT investments are capital expenditures-mid-to long-term- and therefore seen to be discretionary and deferrable.
Analysts foresee that many of the core areas of the IT sector could see declines in revenue of as much as 30 percent over the next year, they believe it could be lower than 10 percent for most BPO's.
"Application support and maintenance and project implementation services of IT are likely to take a dip of over 30 percent. But BPO's are about core transa
