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: The Indian business process outsourcing (BPO) industry, which has seen good times so far, might have to drastically rethink its business strategy to sustain the present level of growth, opines Vijay Govindaraj, guru of global strategies, Tuck School of Business, Dartmouth. Mr Govindaraj believes that this is true even of the global BPO industry. To find out more about this, FE’s Shabana Hussain caught up with Mr Govindaraj who is in Chennai to conduct a session on the ‘Global BPO Vision’.
Do you see the boom in the Indian BPO sector continuing?
The BPO industry is enjoying a boom period for the present. However, the question is: Will this last? The answer: it can last provided the industry understands that it as to keep transforming itself to suit the client’s requirements.
What do you think is lacking in the BPO sector?
The industry is resting on its laurels. India has become the favourite destination for back-office operations thanks to the cost arbitrage factor.
However, the cost advantage factor is not enough to sustain the present rate of growth. I think the industry has to drastically transform itself.
Can you elaborate on the change that is required in the sector?
The stage in which BPO companies thrived because of the low-cost advantage is over. BPO firms have to move up the value chain of services now. The change has to start now and if it doesn’t the BPO sector might face tough times ahead.
Would you say that in terms of change, the Indian BPO industry is already way ahead of other countries like China?
Yes. India is ahead of other countries. However, time is running out. We have the right resources but we have to direct these resources in the right way.
Is it only the BPO industry in India which requires a drastic shift in the way it thinks ? Or is this true of other industries as well?
No. In fact, the whole of India Inc needs to rethink its business strategy. A good corporation has to have three important things in its business strategy. One is to plan for the present, second is to selectively forget the past and the third is to think ahead. The problem is that most corporates tend to concentrate on the first part of the business strategy. Very few corporates lay stress on all the three aspects. The whole idea is that ‘if it ain’t broke, don’t fix it’. This attitude has...
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