Despite US recession, BPO's future looks bright

| Last updated less than one minute ago

Submit :

News Photos Just In Debate Topic Latest News Articles Local News Blog Posts Pictures Reviews Recipes

Home > Business > Article

Despite US recession, BPO's future looks bright

The economic recession in the United States has affected the BPOs in India. But this has not totally fractured the outsourcing industry, as there are scopes opening up beyond US like Europe and Australia or changing client exposure.

CJ: Rincy

Thu, May 22, 2008 09:30:24 IST

Views:
1808
Comments:
2

Rate:

3.25 / 4 votes

BPO Business Industry :

THE BUSINESS Process Outsourcing (BPO) vendors having United States based clients share mixed reactions due to the temporary slump in the US economy. This will be further heightened till the time final election results are not out and the new president doesn’t announce some relief with string of measures to combat the credit crunch heat.

Those BPOs or KPOs, which focus on large US companies or big ticket outsourcing contracts, are facing the recession crisis as seen by the delays in contract renewals or temporary freeze in awarding of new contracts. One of the associated factors is the lengthened decision-making time with a lot of top heads losing their jobs under the recession pressure.

Large companies have now focussed their energies on restructuring their companies through vertical acquisitions or major divestitures besides analysing their internal processes. This has chiefly been observed with IT and financial service companies. It seems that ’outsourcing’ is now on the back-burner for them, as they focus more on meeting their budgeted business targets first.

But there’s some hope in these tough times. The economic crisis has forced the small to mid-sized US companies to assess outsourcing as an option as they struggle to survive against the big mammoths. They are re-evaluating their internal processes to find solutions within tight business budget constraints. This, in fact, opens up a galore of opportunities for BPOs and KPOs from India, which focus on small to mid-sized US clients with revenues lesser than $5 million.

There are few other smart choices available too, like looking beyond the US to stretch the sights to Europe and Australia or changing the client exposure from the typical IT and financial service clients to other industry verticals.

Print | Post comment

More in BPO Business Industry

Post your comment

Posted comments (2)

	BPO is the contracting of a business task to a third party service provider. Back-office outsourcing refers to internal business functions like billing or purchasing, while front-office outsourcing includes customer-related services such as technical support, marketing and customer service. The focus in BPO is on reducing transaction costs, optimizing process efficiency and providing size and scale to handle a large volume of transaction processing engagements.India has won its spurs as the world's outsourcing destination of choice. Currently the country has a commanding share of the global outsourcing market.The Union Communications and Information Technology Ministry in India states that the Indian IT-BPO sector is likely to achieve a target of USD 60 billion in export revenues by 2010.
	\| 07 December 2010 Reply to Comment \| New Comment \| Report Abuse

	well, according to me, BPOs have a bright future in India because of the highly skilled workforce and good foreign currency rate
	\| 29 May 2008 Reply to Comment \| New Comment \| Report Abuse

Live Debate

Isn't there a need to now expose all that was evil about Apple?

Agree: 0%

Disagree: 0%

Participate Now

Latest in Business

Northern region leads in..

Is the Indian's economy heading..

Punjab suffers daily loss of..

My entrepreneurship journey

Power engineers demand debate..

Haryana power generation..

Maruti Suzuki unveiled India's..

more...