Business Process Outsourcing (BPO) - India stands to lose
Markets emerge and replace old content. Countries become new players in an existing market and might push other countries aside if those haven’t been able to upgrade their options. This is the somewhat natural way how economies develop.
India has been seen as the number 1 scapegoat in the US for absorbing a lot of white collar workers in the business process outsourcing industry. The market is still booming, however, the first warning signals appear stronger and stronger. Partially, language issues play a role. Indians are traditionally good at English, but Spanish-speaking countries in South-America cater to the US, countries in Eastern Europe start catering to countries in Western Europe and so on – what serves the development of different segments in the same market. It gets problematic if countries speak the same language and promote the same service – countries in Southeast Asia.
Offshore business process outsourcing (BPO) earned India an estimated US$3.3 billion in 2003. This represented more than a 80% share of the global BPO market. However, the Gartner Group group warns that India’s share is bound to decline to 55% by 2007. Why? Well, the government apparently didn’t draft a long-term roadmap for the sector, similar to what has been done for the software and other mainstream information technology sectors. Gartner called India as a nation complacent!
And once again, we might see a giant falling due to its own success. Others call this creative destruction or the innovator’s dilemma.
India has been seen as the number 1 scapegoat in the US for absorbing a lot of white collar workers in the business process outsourcing industry. The market is still booming, however, the first warning signals appear stronger and stronger. Partially, language issues play a role. Indians are traditionally good at English, but Spanish-speaking countries in South-America cater to the US, countries in Eastern Europe start catering to countries in Western Europe and so on – what serves the development of different segments in the same market. It gets problematic if countries speak the same language and promote the same service – countries in Southeast Asia.
Offshore business process outsourcing (BPO) earned India an estimated US$3.3 billion in 2003. This represented more than a 80% share of the global BPO market. However, the Gartner Group group warns that India’s share is bound to decline to 55% by 2007. Why? Well, the government apparently didn’t draft a long-term roadmap for the sector, similar to what has been done for the software and other mainstream information technology sectors. Gartner called India as a nation complacent!
And once again, we might see a giant falling due to its own success. Others call this creative destruction or the innovator’s dilemma.
posted by Andreas @ 2:36 pm
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