Challenges of BPO Companies in India

BPO companies in India

Outsourcing industry in India contributes a lot to the Indian economy. The Indian business process outsourcing industry has risen by 15% and the revenue generated from this industry is expected to triple in the coming years.

India has been the hub of the global outsourcing industry but there are a lot of challenges that this industry is facing in the recent years and in an attempt to continue the growth, they must somehow overcome these challenges. This article will walk you through the challenges faced by the business process outsourcing companies in India. 

Rising Competition

If you go a little back in time, India was the primary destination for BPO Services for most of the global businesses. Globalization has been a boon to the growth of the outsourcing industry in India. However, outsourcing to India has seen a decline in the recent years with the entry of Philippines, Malaysia, Singapore looking for a chunk of the outsourcing space.

Thus, it is necessary that Indian BPO industry takes immediate steps to get things back on track and curb the competition posed by the entrants in this industry. The new players in the industry offer unique services which must be incorporated in the offerings. The services need to be improved and better ways must be searched to deliver a great customer experience.

Opposition from Other Countries

The BPO Outsourcing companies in India are facing an increased opposition from the UK Labor unions and US politicians who believe that outsourcing to India is harmful to their economies. Keeping jobs within the own country and not outsourcing to other countries was a hot topic in the recent US presidential campaign.

Thus, the BPO industry in India has to stop being smug and get more active, especially at a time when US & UK economies are in recession.

Lack of Talented Staff

This is a major challenge that the BPO companies in India are facing these days. Although, a very large population of students graduate every year but a very few of them are suitable and job ready for working in the BPO industry. Moreover, the multi-lingual call centers hit very badly when the agents are not capable enough to communicate effectively.

Indian agents are often unfamiliar with the foreign culture. On the other hand, support agents from the Philippines are very much familiar with the American culture and versed in multiple languages. Indian BPOs have to improve drastically in this area.

High Attrition Rates

Attrition hits hard to any industry. BPO companies are no different. It results in loss of talent and a significant cost has to be beared in training of new employees. As per a study, on an average, a UK call center agent stays in the organization for 3 years but on the other hand, an employee of a call center in India stays for only 11 months.

A number of factors contribute to high attrition rates in the Indian call centers. Some of them include high-stress, lack of career growth and monotonous structure of the job. BPO companies have to take strict measures to control high attrition rates.

Recent research reveals that the Indian BPO industry is expected to reach $15 billion in the coming decade. The advancements in technology and friendly Government policies will definitely help India be the global outsourcing hub again. GizmoSupport has been a pioneer in delivering BPO services in India from the last 12 years. Efficient services and global quality standards make GizmoSupport the first choice to outsource call center services. 

Interested to know about diverse services. Reach us with your business requirements and we’ll be happy to assist you.


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