The global economic conditions are looking challenging however Information Technology or Business Process Outsourcing industry body Nasscom believes the adversity offers opportunities rather than threats for the Indian Business Process Outsourcing sector. If you ask on a question that do you expect the global economic woes to impact the Business Process Outsourcing sector? There is a person who answer this question, he said that he do not believe that there is any cause for concern at the moment as this is a sovereign debt crisis that is playing out in the US. The private companies which are the major outsourcers are continuing to grow.
To customers they have been speaking and they are not seeing any revisions or re-negotiations in contracts. There are strains in Europe too but they do not expect all the troubles to turn into a full-blown crisis. They look at the difficult conditions as an opportunity for the Business Process Outsourcing sector.
This is because, they need for a cost effectiveness and process efficiency means that the role of Business Process Outsourcing becomes more critical. The Business Process Outsourcing are now viewed not just as vendors but also as the partners. The Business Processes are intrgral to the functioning of the company and difficult to carve out. The previous recession that emerged form nowhere, the Business Process Outsourcing industry has now learned to become leaner and more flexible. The Business Process Outsourcing are increasingly offering end-to-end solutions as opposed to just transaction-based work. It includes the elements of the consulting, process re-engineering, technology, platforms solutions.
The Business Process Outsourcing is much more globalized. The need for the multi-lingual skills, proximity to markets as well as cost levers is leading to the trend. It is also an opportunity for the Indian Business Process Outsourcing to leverage on different skillsets and skills across geographies and become global MNCs. India is still a leader when it comes to services at the higher end of the value chain. The new MAT tax regime on SEZs in India and expiry of STPI tax benefits. The major growth drivers would be the under penetrated nature of the business. Even companies in developing countries are looking to outsource Business Process Outsourcing work. There is also a lot of demand for re-engineering processes with efficiency.
REFERENCE:
http://economictimes.indiatimes.com/opinion/interviews/bpos-should-cash-in-on-global-slowdown-nasscom-president-som-mittal/opinions/9716743.cms
http://timesofindia.indiatimes.com/tech/news/outsourcing/BPOs-should-cash-in-on-global-slowdown/articleshow/9719412.cms
http://www.bpowatchindia.com/bpo_news/bpospm_mittal/august-24-2011/bpos_can_cash_in_on_global_slowdown.html
