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BPO Firms in India to Expand in Other Countries
TMCnet Contributing Writer
Riding on the wave of the BPO boom has suddenly become tough. Areas of India which were once prospering due to huge investments by companies are now facing competition from countries like Mauritius, Philippines, Malaysia, Canada and Ireland. These nations are currently pursuing the big names in the Indian BPO scene, like TCS and Transwork, to get them to set up new facilities on their grounds.
These Indian BPO companies are discussing possible investments on foreign shores, assured by the financial and political support offered by other governments. Experts say that acquisitions in the Philippines, Thailand or Malaysia will work to the Indian BPOs’ advantage, given the tremendous growth in value terms. This also delivers a strong message to the global companies that Indian BPOs can also function as MNCs outside the country.
Even though the cost of manpower is around 10 to 20 per cent higher in China than in India, due to higher social security costs, companies like TCS are impressed with the commitment of the administrative machinery and the political system in China to develop the information technology sector. Moreover, the Chinese are offering huge office developments and electric power at competitive rates.
The relatively small size of BPO firms in India can be a hindrance, say some experts. Without scale, it is not possible to bring in higher-end contracts. Larger providers like ICICI oneSource and WNS are evolving into large-scale generic plays with global delivery and front-end operations in all the three major markets - the U.S., Europe and Asia-Pacific.
ICICI oneSource has centers in the US and UK, and many other companies have started operations abroad as well. TCS has a centre in China and HCL Technologies has a large office in Ireland. These companies are also looking to expand their operations in South East Asia. They want to have BPO centers to address their non-English speaking clients. Some companies plan on opening centers in Central America and central Europe to serve Spanish and French customers.
Anuradha Shukla is contributing writer from India. To see more of her articles visit her columnist page.
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