Economy Survey 2013: India lost 10% share in global BPO mkt to China, Brazil

Outsourcing has become a national issue in many developed countries like the US and the UK, who are supporting the local BPO industry through various means.

"In such a situation, the Indian BPO industry needs to gear up to address the challenges. Information campaigns to dispel the myths and fears about outsourcing needs to be undertaken by the industry in the developed economies," it said.

In the overall IT and IT-enabled services space, new competitors like China, Israel and the Philippines have emerged in recent years.

Between 2005 and 2011, the annual average growth of IT-ITeS services was 69 per cent in the Philippines, 28 per cent in Sri Lanka, 59 per cent in Ukraine, 27 per cent in the Russian Federation, 37 per cent in Argentina and 35 per cent in Costa Rica.

"Even if in some cases the export values are relatively low, the average annual growth of computer services in these economies is well above the average of the top exporters," it said.

India needs to move up the value chain in software services, the survey document said, adding that there is also a need to move more towards rural areas.

For this, skill development and English language training with American and different European accents is necessary, it added.

There is also a need to focus on the large domestic sector where the opportunity, if tapped, could also lead to lower costs due to economies of scale, it said.

Nasscom estimates show IT-ITeS exports grew 10.2 per cent to USD

... contd.