India Continues To Lead The BPO Market

According to the reports by Market Vista: Q2 2009 on global outsourcing, the outsourcing transaction volume increased by 10 percent globally in the second quarter as compared to the first quarter this year. These reports were issued after the contracts being signed by the financial services and manufacturing firms.

Everest Research Institute, the global outsourcing and offshoring activity serves as a central source of independent and objective strategic intelligence and actionable insight for leading corporations, technology providers, suppliers and investors in the global outsourcing and offshoring market place.

During the second quarter of the fiscal year, out of 30, 13 offshore call centres were established in Asia. In the same period, the transaction volume in Asia-Pacific, Middle East, Africa, Latin America increased by 25 percent Nikhil Rajpal, Principal, Global Services said that, there has been significant increase in market as compared to Q1 2009 in terms of transaction signings and captive set ups.

HCL BPO To Set Up A Training Institute

The BPO wing of HCL Technologies, one of the ITes service providers, is planning to set up training institute. The institute is likely to come up in Chennai in a year’s time. It will create a pool of quality resources that will be useful for HCL itself as quoted by A. P Rao, the senior vice –president (human resources).
Due to recession many professionals have got into BPO services. HCL has created an innovative method to increase the quality of working conditions in order to retain the existing talent. This new programme is called “Aspire”; under this programme the company will offer training programmes to professionally qualified professionals.
This training programme will enable professionals to move HCL’s IT services. If a BPO employee undertakes this training programme he will have to work for four days and on the fifth day he will have to attend the training programme. This training programme will jointly conducted by NIIT.
So far, HCL has already enrolled 400 employees after taking the test from BPO services to IT services. This year so far 500 employees are getting trained. Though the training is imparted at HCL organization, the company charges a course fee of Rs.50,000. However the company would pay back the course fee in two years.
Mr. Rao said that due to downturn, it has become necessary for any organization to improve efficiency through innovative ideas and most of the organization is reducing the attrition rate and quality of working conditions.
Mr. Rao added that, the existing head count in HCL BPO services was 10,000 and it hoped to grow by 25 percent next year.

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.