Challenges Of Bpo Industry

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Challenges due to low cost countries on India’s IT-BPO Industry India is facing competition from other countries around the world in IT outsourcing. China, Ireland, The Philippines, Malaysia, Vietnam, Poland, and Egypt are just some of the countries that aggressively looking at IT outsourcing for growth. Over the years these countries have been developing their country to be able to provide IT outsourcing and lay a strong foundation to sustain this new idea. According to KPMG (2016), some of the investments these countries have done are built a huge market share by delivering a wide-range of services across the products line, insights across industries, investments in industry specific offerings and intellectual property tools/templates…show more content…
As per the NASSCOM report, “recently there were about 200 Indian companies offering BPO and related services looking for buyers”. According to the Asia Pacific Journal of Research, bills have been tabled in five states, New Jersey, Maryland, Connecticut, Washington and Missouri where there is a ban that you cannot transfer data processing contracts to developing nations. Country Strengths Weaknesses Poland -High quality workforce -Location to western & central Europe -Top choice for back office data support -High costs Egypt -Language skills -quality of graduates -Social & political environment China -Business friendly -Have made fast strides to learn the English language -Strong infrastructure -Not the number one choice yet for voice work -low English proficiency Malaysia -Strong infrastructure -Favorable business weather -Talent pool is small -Less outsourcing experience The Philippines -Has the most developed outsourcing industry in terms of maturity, capability and range of service -Weak infrastructure According to the Asia Pacific Journal of Research, there are challenges and areas for improvement for India which are listed below. 1. Telecommunication is a big key to having part of a company outsource their business to India and for that reason India needs to have good infrastructure for providing good telecom facilities. 2. Workers in India
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