The Transition of India Call Center Market (BPO) to Business Process Management

The India call center market was valued at USD 28.19 billion in 2017. Major factors that are driving the growth of the call center industry in India are growth in English and multiple language speaking population, skilled professional for different verticals who can provide support in the business operations other than technical support, government schemes to promote the industry further as it was contributing to country’s GDP and low cost of employment with professional and quality workforce compared to developed countries.

The BPO industry entered India in 1980’s with American Express setting up its back-office operations in Gurgaon, India. This was headed by Harry Robertson and Raman Roy who later joined GE. In mid-1990s, Pramod Basin started GE capital international services (GECIS) with Raman Roy and several other employees from American Express.

The size of the global market for The Transition of India Call Center is expected to reach US$ 55.5 Bn by 2029, expanding at a compound annual growth rate (CAGR) of 10.8%.

The business was growing exponentially with Raman expanding voice operation outside India at multiple locations. In 2004, GECIS was spun-off into a separate entity called Genpact by GE. After which with the increasing venture capital investment many new players entered into the BPO industry including EXL services, Infosys BPM and WNS BPO in India.

BPO is a preferred industry in India since it has employed a vast majority of population. The industry contributes to a significant portion of the country’s GDP and has witnessed a steady growth ranging from 1.2% to 5.4%. The employment rate was also growing from year on year, for instance the number of people employed in BPM were 7, 38,000 in 2008 and had increased to 1,188,000 by the end of 2017.

Furthermore, the BPO industry in India is not only a call center or data entry work, it has now shifted from base-level work to serve a whole range of business processes, including areas such as healthcare and legal advices. The employees working in the industry are educated and are skilled in various professions. They can handle different task from huge technical complexity to advising clients.

The companies are also launching certification programme in collaboration with NASSCOM to create awareness and attract more talent. Moreover, NASSCOM conducted a perception survey and found that 40% of student surveyed did not have the right knowledge and understanding about the industry.

As BPO is one of the major industries in India and contributes to a major portion of the nation’s GDP the government has also taking steps to promote it by introducing new policies. After 2008 the recession year the demand for outsourcing from India has drastically increased due to its well qualified professionals and less expensive value proposition.

The information technology minister acknowledges the contribution of BPO industry to the country’s economy and has initiated promotional programmes to offer a growth stimulus to the industry. In October 2016, the information technology minister approved India BPO Promotional Scheme under digital India initiative to increase employment opportunities. The government is also providing capital support of ? 493 crore (~ USD 70 million) and incentives of ? one lakh (~USD 1400) per seat in the form of funding.

The competitive landscape of the India call center market is highly fragmented with a large number of established players occupying about 40% of the overall market including Genpact, Tata Consultancy Services BPO, Wipro BPO and WNS Global Services. Moreover, according to NASSCOM, there are more than 500 outsourcing companies in India with their operations present in 66 different countries and professional speaking in 35 different languages.

The major players in India call center market analysed are Genpact, Infosys BPO, Tata Consultancy Services BPO, WNS Global Services, EXL Service, Wipro BPO, Aegis Limited, Firstsource Solutions Limited, Hinduja Global Solutions and HCL Technologies BPO Services Limited.

India Call Center Market Scope