The New Indian Express

Mangalore, Apr 1: India is set to become the most popular destination for BPO operations making multinational companies outsource their business processes offshore to Indian BPO companies, says a study.  Rightly, the BPO sector is expected to provide employment to 1.1 million people by 2008 as per a report by the National Association of Software and Service Companies (NASSCOM),” said head of the department of business administration at Kakatiya University, Warangal, Prof Dr B Venkat Rathnam.

Presenting a paper on ‘Emerging issues in BPO sector at ‘Management 2006’ on Wednesday March 29, he said that BPO has got impetus with various technological breakthroughs. The internet which is spreading across the globe has been a big facilitator for BPO business.  India has a pool of talent and has the second-largest English –speaking population with computer knowledge in the world after US.  Also, costs are lower in India compared to other countries for outsourcing. 

Prof  Venkat Rathnam observed that despite the boom and support that BPO sector has fetched, there are certain grass root level setbacks too.  These setbacks are strongly propagated to be threats resulting into backlash on the BPO activity in India.

“Lack of maturity in service line, increasing competition among e-logistics providers and management resistance are the main deterrents to the outsourcing in the logistics sector.  Discretionary cuts in budgets, low growth due to industry maturity and decentralized nature of facilities management are the main deterrents to the outsourcing in the facility and operations management sector. These are acting as serious impediments for growth of BPOs,” he added.