Economy Survey 2013: India lost 10% share in global BPO mkt to China, Brazil
The pre-budget Economic Survey 13, which was tabled in Parliament today, said India faces stiff competition from several emerging countries in the BPO sector.
It called for information campaigns by the industry to dispel the myths and fears about outsourcing in the developed economies.
Countries like Malaysia, China and the Philippines in Asia; Egypt and Morocco in North Africa; Brazil, Mexico, Chile and Columbia in Latin America; and Poland and Ireland in Europe are emerging as attractive destinations for voice contracts, posing a significant threat to Indian firms, it said.
"According to Nasscom, in the last five years, India has lost about 10 per cent market share to the rest of the world in the world BPO space, most of which is in the voice contract segment," it said.
According to industry body Nasscom, in FY13, IT services would account for USD 50 billion, while Business Process Management (BPM or BPO) and Engineering services would contribute USD 20 billion and USD 10 billion, respectively.
In terms of competition, though China faces challenges like language proficiency, it is making large investments in the mission mode to increase English proficiency.
"Thus, (China) may eventually emerge as a threat to India," it added.
The Philippines, which is the second largest destination for outsourcing, is also a serious competitor having developed both the hardware
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