BPO Backlash

BPO India is one of the popular business practices in the world's competitive environment. The Indian BPO industry is constantly growing. According to India Infoline, the ITES-BPO segment recorded a growth of 59% in the year 2002 and touched US $2.3 billion in the year 2003. However, along with the phenomenal increase in BPO to India there has been a backlash against outsourcing. The opposition and backlash is coming mainly from developed countries that are directly affected by outsourcing to India. Though this anti-outsourcing movement is gaining momentum but the pace at which the trend of outsourcing is continuing to India, this is going to double in a couple of years. It is because of numerous advantages that India enjoys in comparison to other countries.

Fame comes at a price. And being the fastest-growing and most cost-competitive outsourcing destination could sometimes elicit such negative responses. The reality that India is fast emerging as the back office of the world and our BPO industry is estimated to grow at a rate of 65 per cent per year is not taken too well by most of the developed countries of the world, from where these jobs are coming to India. Even as investments in the ITES-BPO industry are increasing by the day, banners and slogans demanding a ban on outsourcing of jobs to India are increasingly noticeable.

Some states in the US have tried to legislate banning the transfer of state data processing contracts to developing nations. Despite the bill being passed by the US senate barring the shifting of BPO work to India, the BPO supporters lobby in the US is working at changing the mindset and perceptions. In the UK, three of the country's biggest trade unions have come together to fight the loss of jobs to India, especially British Telecom's move to open a huge call center in Bangalore. These unions fear that the competitors of BT will emulate this act. German protesters have been running an unrelenting political campaign against the German green-card scheme for a while now.

But one thing is sure. The trend of BPO is likely to continue under all circumstances, because firms have become habitual of moving the BPO work to India, it is now like an addiction, which they can't do without. The only thing that needs to be done now is resolving of cultural differences, which, crop up during the cross-border shifting of BPO work. Indian BPOs have been in great demand because of the low-operational costs here and also because most of our workforce is well educated and has had a university education. Indian BPO industry is driving at the top gear and is sure to maintain that numero uno position in the coming years too.