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

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

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Rajeev, Meenakshi
B P, Vani

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Meenakshi Rajeev

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.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9834.

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Date of creation: 01 Jun 2008
Date of revision: 05 Aug 2008
Handle: RePEc:pra:mprapa:9834

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Find related papers by JEL classification:
L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

This paper has been announced in the following NEP Reports:

NEP-ALL-2008-08-14 (All new papers)
NEP-CWA-2008-08-14 (Central & Western Asia)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Oliver E. Williamson, 1967. "Hierarchical Control and Optimum Firm Size," Journal of Political Economy, University of Chicago Press, vol. 75, pages 123. [Downloadable!] (restricted)
Jagdish Bhagwati & Arvind Panagariya & T. N. Srinivasan, 2004. "The Muddles over Outsourcing," International Trade 0408004, EconWPA. [Downloadable!]
Other versions:
- Jagdish Bhagwati & Arvind Panagariya & T. N. Srinivasan, 2004. "The Muddles over Outsourcing," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 93-114, Fall. [Downloadable!] (restricted)

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