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Bpo Markets

In: Business and Management

Submitted By bellamyj
Words 456
Pages 2
I believe the fundamentals for the BPO market didn’t change due to the current financial crisis in US. Still, Indian outsource companies add value to the western companies by saving cost, increase process efficiency and decrease time to market. However, I feel in the short-term the BPO market may see reduction in their revenues due to financial industry consolidation and mergers. This might be a good time for them to review their employees and thin them out based on their performance, which will help them to increase their profits while still serving their customers. This time around they can also reach out to Europe, Japan, and other non outsourcing countries to market their IT and BPO services, which will reduce their dependency from US companies.

The problem with outsourcing and human capital is the fight between the major corporations. When one company spends a certain amount of time training and teaching an employee another company will turn around and offer that employee eight cents an hour more. Workers bounce from one company to another based on how much more they can make. The loser in this situation is the first company that spent the time and resources to train that employee. It seems that it is pointless to even train any one, just steal from the next.

Outsourcing plays a big part in national agenda. Indian government policies are framed in such a way that the BPO market can obtain maximum benefits while working with global companies. These policies are aimed at supporting growth by opening the Indian market and location of infrastructure to the world economy. This has allowed foreign companies to enter Indian markets very easily. The Indian government plays an important role in protecting the interests of the BPO market. By offering tax incentives on infrastructure, electric, communications and exporting they are trying to boost...

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