This was stated by Wipro Spectramind chairman and managing director Raman Roy while addressing a session on BPO industry at Euro India 2004, organised jointly by the Confederation of Indian Industry (CII) and the European Commission.
According to National Association of Software and Service Companies (Nasscom), the worldwide ITES-BPO market is estimated to be at around $773 billion in 2002 and expected to grow to $1 trillion by 2006. However, Indias ITES-BPO industry is expected to touch only around $3.6 billion market in fiscal 2003-04.
Notwithstanding the outsourcing backlash against Indian firms in the US, there is a window of opportunity for Indian BPO companies to explore opportunities from the largely untapped European market, Mr Roy said.
According to Mr Roy, outsourcing is the need of the day as the business world is facing some realities in the form of skill shortages, need to reduce costs and focus on core operations, technological changes, to name a few. These factors are impacting the corporate world and they are looking for solutions in the form of remote process outsourcing, he said.
Mr Roy said, the outsourcing market is growing as both service lines and specialist needs of industries are growing and here lies the opportunity for Indian BPO firms who have, so far, focused on customer interaction services which comprises 80 per cent of the BPO industry here.
Giving a European perspective of BPO in India, Mr Philippe Van de Casteele, managing director of Tele Atlas India, a IT solutions provider in the area of digital mapping for geographic information services (GIS) and location-based services, said, the company was attracted by Indias highly qualified and knowledgeable resources.
Tele Atlas, which has set up a development centre in Noida, is involved in creation and maintenance of digital roadmap database, covering 18 European countries, US and Canada.
While the company is looking at a major expansion for its Indian operations, Mr Casteele cautioned that high rate of attrition in the Indian BPO industry and increase in salaries of professionals here might pose a serious challenge for the BPO industry here.