BPO Industry Faces Tough Phase

The Indian BPO companies that grew at a blistering rate of 30-32 percent for many years have almost halved to growth rate of 16.3 percent in the financial year 2008-09. They are likely to plummet further to 4-7 percent in this financial year due to economic slowdown.
The software exports revenue is projected to grow at a mere 4-7 percent to reach $48-50 billion in the year 2009-10 as said by the industry association Nasscom.
Earlier in February, Nasscom had reduced the growth target for IT exports to 16 percent from its forecast of 22-24 percent that was made in the mid of 2008 for the financial year 2008-09.
The major reasons for decline in BPO industry is technology spending by global major, pricing pressures, delay in demand pick up and overall bleak economic outlook.
India’s largest software exporters Infosys and TCS have predicted tough business environment this year. Domestic IT- BPO revenue grew by 21 percent to touch Rs 12.5 billion in the financial year 09. The total industry revenue for domestic and exports was $58.8billion in the financial year 2008-09.
According to Nasscom findings, the domestic revenue is expected to grow by 15-18 percent in 2009-10. The BPO sector has reached $58.8 billion in 2009-10 from $52 billion in 2007-08.