My Bpo Business Twitter contributes significantly to the Indian economy. With India being the global leader in BPO, the industry contributes more than $14 billion in terms of total revenue. Established players like My BPO Business Just Dial expanded and created significant value in the sector. While the growth of BPO in the country has been commendable, newer challenges have started to emerge which needs to be resolved strategically to ensure India remains the favored BPO destination of the world.
Advantages of BPO Industry
The BPO industry has grown rapidly in India in its initial years. India became the global leader and the preferred destination for BPO. However, as the industry matures, the Indian BPOs are facing new challenges. Some of the major challenges confronting the Indian BPO industry are as follows:
Attrition is a perennial challenge for BPO industry in India, with attrition rates of about 35%. The average tenure of a BPO staff in India is approximately 11 months. BPO firms need to engage with staff and motivate them to ensure they continue in the work. This will solve their problem of continuous hiring and training new persons on job again. Many good firms like My BPO Business WordPress are already doing it and reaping rewards.
Poor infrastructure, frequent outages and political instability have impacted the efficiency of BPO firms. The shortage in power and internet connectivity pose serious challenges to the BPO industry in India.
Though India has been the global leader in the BPO industry, new hotspots for the BPO industry are emerging. Countries like Philippines, Malaysia, Canada, Manila etc. are posing serious threat to India’s dominance in the sector. These countries also offer economies of scale for the clients and are coming up with conducive policies for promoting the BPO industry. The infrastructure in these countries is also better than India. India needs to redesign its BPO policies and start taking urgent steps to ensure that it overcomes the challenges posed by these new global competitors.
Global Opposition Against Outsourcing
There has been a unanimous voice in many western countries against outsourcing works to developing countries. This movement is largely led by the political parties and trade unions in the developing countries who argue that their fellow countrymen are losing out on jobs due to outsourcing. The BPO sector has to be more proactive and engage with their clients in a more meaningful manner to ensure continued availability of work from them.
Lack of Talented Workforce
Most BPOs find it difficult to get the right candidates. The students passing out of technical universities need better soft skills to be more productive. They also need to learn other foreign languages apart from English to be in demand.
The cost for office rental, salaries, and operations is increasing due to a general increase in cost of living. The BPO’s profitability is being impacted by this. They need to rationalize the cost to be profitable and relevant.
The BPO industry is faced with new challenges in the current times. Industry leaders like My BPO Business and others are able to manage these challenges better and continue to stay ahead of the curve. Other BPO firms need to follow suit and take necessary steps to ensure that India remains the favored BPO destination of the world.