2008, Brutal for BPO Cos. & Customers,How's 2009?

by Manu Sharma    Jun 09, 2009

How as the year 2008 for the BPO industry in India? How will the industry grow? To what extent will the global slowdown factor in this growth, and impact it? The who-is-who of the BPO industry tried to find an answer to all these queries and more, at the Nasscom BPO Summit being held in Bangalore.

How as the year 2008 for the BPO industry in India? How will the industry grow? To what extent will the global slowdown factor in this growth, and impact it?

The BPO industry is scheduled to grow in double digits, according to Pramod Bhasin, president and CEO Genpact, and chairman Nasscom. He said, 2008 was a brutal year for BPO customers and companies. Companies are now going through an internal change. They are restructuring facilities, addressing new market because the rate of decline is very volatile.

"Smaller companies will continue to feel the pressure, and it is a matter of survival for them," said Vikram Talwar, executive chairman, EXL Service. Changes cannot occur because companies are going through a rough phase. It always takes a couple of years to overcome the slowdown. Since the pricing pressure will continue, we will need to restructure and innovative business models, said he.

It must be mentioned here that in the recent past, Nasscom had formed a form to help small businesses. The forum is a platform to discuss new ways of getting business, especially since venture capital funds are reluctant to fund smaller companies. On which Som Mittal, president Nasscom said that VCs have started funding existing customers (second and third timers). They are not funding new ones because they have to evaluate a lot of details. And despite this gloom, we see a lot of opportunity in tier 2 and tier 3 cities.

On the other hand, Ganesh Natarajan, vice chairman and CEO Zensar Technologies foresees the growth of the Indian BPO sector in single digit. He said,  This is because looking at long term, I do not expect it. Costs have gone done and slowdown has resulted in lesser opportunities. Going forward, engineering and IT services, products support, IT infra will have a good growth, while new apps, new companies will see a slow down. I am expecting the finance ministry to announce STPI extension scheme in this budget.

 
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