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India losing its edge: Competitors from the Philippines and Mexico are dominating the IT industry

By Maria Elisa Anacay
Posted Apr 28, 2013 in Business
The Wall Street Journal (WSJ) reported that India is losing its claim as the leading business process outsourcing (BPO) hub for the IT industry.
Majority of Indian workers centered their lives on the BPO industry. Given that the Indian BPO scene has been in place since the business practice first emerged, it leaves little room for wonder that the country is leading the competition. However, with the turn of the century came more and more competitors for the business practice, particularly for the IT sector. As a result, India is now finding itself grasping on the reins as BPO hubs in Manila, Philippines, and Mexico are evidently progressing.
According to WSJ Street Columnist Abheek Bhattacharya, India is facing steep competition from these two countries as they are delivering more results and appealing to the needs of Western clients. The clients want more than basic database or server maintenance service from their BPO providers. The outsourcing firms must be able to offer good consulting solutions to help their clientele reach above the competition.
However, the $20 billion Indian BPO market is focused on specialized solutions. In order for it to regain its crown, Bhattacharya advises the BPO hub to differentiate itself from the quality of work being produced by Mexican and Filipino Call Centers. The Indian BPO scene must “move to the higher end of the game,” according to Bhattacharya.
This grim prediction is echoed by The Times of India as it reports that the country lost 10% of the global BPO market in the last half decade, leaving speculations about the future of the Indian IT BPO industry.
As the future of the BPO industry unfolds in front of our eyes, analysts wonder if the increased productivity and quality of off shoring will negatively or positively affect the general perception of the practice. Due to stiff international competition the public’s perception of the practice could benefit or it could continue to sour as foreign destinations become more competitive and lucrative.

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