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

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Listed:
  • Rajeev, Meenakshi
  • Vani, B P

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.

Suggested Citation

  • Rajeev, Meenakshi & Vani, B P, 2008. "Problems and Prospects of Business Process Outsourcing Industry: A Case Study of India," MPRA Paper 9834, University Library of Munich, Germany, revised 05 Aug 2008.
    • Handle: RePEc:pra:mprapa:9834
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    References listed on IDEAS

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    1. repec:wbk:wbpubs:5987 is not listed on IDEAS
    2. Jagdish Bhagwati & Arvind Panagariya, 2004. "The Muddles over Outsourcing," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 93-114, Fall.
    3. Oliver E. Williamson, 1967. "Hierarchical Control and Optimum Firm Size," Journal of Political Economy, University of Chicago Press, vol. 75(2), pages 123-123.
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    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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