As the cost pressure rises in the US, it only means better business prospects for Indian BPO industry
Uncle Sam’s plight has implications for a range of sectors, and one would quite obviously agree that the Business Processing Outsourcing (BPO) sector would be among the most affected. As they are already awake for most part of the night, it’s now time for them to wrack their brains even during the day – all to minimise the devastating impact of the crisis.
Affirms Sunil Kant Munjal, Chairman Hero Corporate Service Ltd., “If our clients get affected so do we…” No doubt, the $11 billion Indian BPO industry, which according to NASSCOM, accounts for approximately 40% of the Global Business Process Offshoring (further expected to grow by whopping $50 billion by 2012), is under the scanner. The worst ones being thrashed by the blow of this merciless subprime crisis are the mortgage and banking firms, which ironically are the second largest outsourced vertical, next only to IT. In fact, IndyMac Bancorp, one of the largest independent mortgage lenders in the US, has already cut down its staff (primarily based in India) by 27%. If that’s not enough, the slowdown has also forced Parsec Interact Inc., a California-based mortgage firm into bankruptcy. It has closed down its shop in India – Parsec Loans.
Uncle Sam’s plight has implications for a range of sectors, and one would quite obviously agree that the Business Processing Outsourcing (BPO) sector would be among the most affected. As they are already awake for most part of the night, it’s now time for them to wrack their brains even during the day – all to minimise the devastating impact of the crisis.
Affirms Sunil Kant Munjal, Chairman Hero Corporate Service Ltd., “If our clients get affected so do we…” No doubt, the $11 billion Indian BPO industry, which according to NASSCOM, accounts for approximately 40% of the Global Business Process Offshoring (further expected to grow by whopping $50 billion by 2012), is under the scanner. The worst ones being thrashed by the blow of this merciless subprime crisis are the mortgage and banking firms, which ironically are the second largest outsourced vertical, next only to IT. In fact, IndyMac Bancorp, one of the largest independent mortgage lenders in the US, has already cut down its staff (primarily based in India) by 27%. If that’s not enough, the slowdown has also forced Parsec Interact Inc., a California-based mortgage firm into bankruptcy. It has closed down its shop in India – Parsec Loans.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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