The Indian Business Process Offshoring Industry

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Case3 The Indian Business Process Offshoring Industry Global business process offshoring (BPO) has been becoming more popular in the last two decades. Increasing cost pressures made Western companies start to offshore IT activities to developed economies, which offered them cost attractiveness. One of the countries with the most developed Offshoring industry is India accounting for 30% of the global BPO Industry. Case’s Facts: * Global business process offshoring (BPO) industry is $50billion in 2012. * India accounts for 30% of the BPO Industry * BPO sector in India employs over 4.5 million people * India has an increasing amount of English speaking graduates. * BPO evolution 1. Routine IT activities…show more content…
Switching back would imply high costs. | 2. What unique resources and capabilities help Indian BPO firms to compete globally and also enter new markets? Resources and capabilities | Tangible | * Financial: Indian firms haven 't been highly affected by the GFC, which have given them the capital to acquire IT specialised companies in US and European market. * Physical: operation in Europe, Asia, North America and Latin America. Specialisation of their locations in different services. * Technological: Diversified portfolio of services and global delivery capabilities. * Organisational: Ability to generate high quality low-cost services. | Intangible | * Human: skilled IT human capital (English graduates) * Innovation: ability to innovate to the necessities of the clients: Indian BPO went from offshoring routine IT activities to specialise IT. New capabilities to serve newer industries (healthcare) and across the full range of product development value chain.- Reputation of providing high-quality services at low cost | 3. What formal or informal institutions make accelerate or constrain the growth of Indian BPO industry? Formal: Government role. BPO sector in India employs over 4.5 million people. Therefore, it is an essential industry for the country’s economy. Indian government is concerned about continuing the development within the industry. Some

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