Problems and Prospects of Business Process Outsourcing Industry: A Case Study of India

Meenakshi Rajeev () and B P Vani

MPRA Paper from University Library of Munich, Germany

Abstract: Though Business Process Outsourcing (BPO) industry is of recent origin in India it has attracted the attentions of entrepreneurs, policy makers and media persons equally due to its phenomenal growth. The growth of this sector has not only helped to improve our current account balance, but also generated income and employment. This paper looks at this IT-enabled service (ITES) based industry particularly focusing on three major service lines, viz., customer care, financial and health care. It analyses India’s strengths and weaknesses vis-à-vis the competing countries. While the major strength of Indian BPO industry is the availability of cost-effective manpower, ironically, it has been observed that the major challenges faced by the industry in India today are mainly human resource related. The paper comes up with the possible measures necessary for keeping India’s competitive edge intact in this segment.

Keywords: Key Words: Business Process Outsourcing; IT-enabled services; off-shoring (search for similar items in EconPapers)
JEL-codes: L86 (search for similar items in EconPapers)
Date: 2008-06-01, Revised 2008-08-05
New Economics Papers: this item is included in nep-cwa
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