{"id":667,"date":"2019-03-18T18:03:53","date_gmt":"2019-03-18T12:33:53","guid":{"rendered":"https:\/\/cyfuture.com\/blog\/?p=667"},"modified":"2020-05-12T18:29:53","modified_gmt":"2020-05-12T12:59:53","slug":"the-erratic-dash-of-the-indian-bps-sector","status":"publish","type":"post","link":"https:\/\/cyfuture.com\/blog\/the-erratic-dash-of-the-indian-bps-sector\/","title":{"rendered":"The Erratic Dash of the Indian BPS Sector"},"content":{"rendered":"\n

\u201cWe continue to be the world’s number one global outsourcing destination. About 37% of total outsourcing market of BPM services is run by India. And the next 3-4 countries put together own less than that. Despite all the disruption, we have grown our market share.\u201d<\/em><\/p>K S Vishwanathan, Vice President, Nasscom<\/cite><\/blockquote>\n\n\n\n

Intro<\/em><\/strong><\/h2>\n\n\n\n

Stats tell that the Indian IT-BPM industry will flourish at a CAGR of 7.63% from 2018 to 2022 exhibiting its flat augmentation in the global market. In the last 10 years, the BPS industry in India has seen a rapid transformation in terms of both customer preference and market response but the determination to continuously evolve and keep moving ahead is what kept this sector on a spree of frictionless growth. <\/p>\n\n\n\n

It was the year 1991 when India reformed its foreign trade policies and opened up to the foreign investors. Not more than 10 years later, India holds around 200 players across the world running their BPO operations from Indian call centers. <\/p>\n\n\n\n

The upsurge of Indian BPS sector<\/em><\/strong><\/h2>\n\n\n\n

The brisk rise of\nIndian call centers rejuvenated the already developing IT sector with an\nincremented scope for business process services. With hovering pressure to sustain\nthe maintenance cost of in-house IT systems and labor arbitrage becoming a much\nadaptable strategy, business process outsourcing is rising in the corporate\nworld. <\/p>\n\n\n\n

This is so because organizations that have chosen to work with BPO companies need not put money or time to increase or handle the available resources. Business process outsourcing or BPO as we know it is the fastest-growing division of ITES (Information technology-enabled services) in India. With benefits like cost-effectiveness, corporate risk mitigation, value offering, no scalability trouble, and higher performance, the Indian BPO service market has shown remarkable growth in recent times. <\/p>\n\n\n\n

Today, India leads the\nlist of nations with most Fortune 500 companies working in its region because\nof a healthy and prosperous BPS segment. Cheap labor cost and a colossal pool\nof qualified, English-speaking, and skilled experts are the two major reasons for\nthe boom of outsourcing services in India. <\/p>\n\n\n\n

But how BPO became BPS\nand what digital & technology transformations have swayed the Indian BPS\nindustry? <\/p>\n\n\n\n

The transition of BPO to BPS<\/em><\/h2>\n\n\n\n

This is an interesting\nstory of how some approach that was meant to curtail the labor charges and\noverhead expenses is now a paramount business strategy. <\/p>\n\n\n\n

All in the past<\/em><\/strong><\/h3>\n\n\n\n

In the mid-80s and 90s,\nbig organizations in the USA and Europe began to feel the pressure to trim their\noperational cost so as to raise the overall profit. For this, the corporates centered\ntheir focus towards developing nations like India, where the cost to hire experts\nwas 3-10 times lesser depending on the expertise. <\/p>\n\n\n\n

Initially, only extraneous tasks that needed a larger headcount of professionals were sourced out. These were back-office operations, accounting, HR, manufacturing, etc. However, after 1991, the Indian BPO sector blossomed. With the internet outshining the conventional market traditions, web-based businesses began to emerge. With IT businesses expanding their operations overseas, a 24-hour and competent tech-support or customer service team becomes essential. This created a void for the entry of call centers. Call center, a workplace with hundreds of experienced and trained agents ready to serve your business\u2019s customers, becomes a common name in the corporate community. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

But the dilemma of western\norganizations was to hire diligent professionals and save expense simultaneously.\nSo, these companies rerouted towards India, which had qualified agents ready to\ncater to any business needs with affordable charges. And hence, India became\nthe leader of the call center industry. <\/p>\n\n\n\n

What now?<\/em><\/strong><\/h3>\n\n\n\n

But all this happened 15 years ago. The early 21st<\/sup> century witnessed some ultra-modern technologies popping in. With cloud entering the business spectrum, the scope of BPO services began to stretch again. Now organizations were comfortable handing over their tasks like web development, testing, digital marketing, Online Reputation Management<\/a>, application development & maintenance, etc to BPO companies. This has happened because the service providers AKA the Indian contact centers were continuously reshaping their business models adopting new tech and mannerisms to meet the volatile customer expectations. <\/p>\n\n\n\n

So, a BPO call center that was previously considered just a service provider was now more of a strategic partner that bolsters growth and generates value for your business. With multiple outsourcing models like takeover, build-operate-transfer, and managed captive, Indian business process outsourcing transformed into business process services (BPO to BPS). A subtle aim of this transition is to cement and maintain long term strategic partnerships with the businesses of all industries. <\/p>\n\n\n\n

 A microanalysis of Indian BPS sector<\/em><\/h2>\n\n\n\n

There is no doubt that\nperpetual innovation, progressive technologies, and soaring competition have highly\ninfluenced the rapid climb of the outsourcing industry in India and in the\nworld. <\/p>\n\n\n\n

While everyone is\ntalking about automation and its impact on the BPS sector, Indian business\nprocess outsourcing division has other considerable aspects that need the attention\nof business owners like you:<\/p>\n\n\n\n

  1. With high-end technologies emerging intermittently, Indian BPS providers are also stacking up these advanced amenities. Well, this is not enough for the Indian contact centers. The problem lies in the shortage of skilled workers to drive or utilize modern technologies. India and the Philippines, the outsourcing powerhouses, have been facing this issue for some time now. The requirement of a high-skilled workforce is derived from the businesses\u2019 need to curtail the price for conventional services. BPO firms are thereby imparting skills to their employees on a regular basis. <\/li><\/ol>\n\n\n\n