US economy is facing a downturn period. The economy that has been the driving force for the economies of other developing nations is in its slump time. The calculations say that this downfall of US will affect the IT industries and other sectors of the most nations.
The analysts are calculating the effect of US recession on Indian Economy and its various sectors. They are reckoning the effects of this downfall period on Indian Exports, IT developments, growth in Software sector and BPO sector. There is news that expose US call centers are not much involved in proactive customer service.
The experts are foreseeing these factors as the opportunities for Indian BPO industry. They are advising that Indian BPO sector should place itself in the US BPO shoes to reinvent the services of the customers that otherwise use the US services.
The BPO sector will keep on booming as it is an essential service. The fact that besides many promises, Indian IT industry is slowing down and the effects could be seen in its current policies. There have been shrinking absorption of labor and decline of many other services can not be argued. But the reports clarify that this will not be same for the BPO sector.
The reports state that Indian BPO sector has the potential of reaching US $1.6 billion by 2008 and US $50 billion by 2012, with this recession continuing. This sector will add 2.5% to India’s GDP growth. It will provide employment to about two million people.
But achieving all the success depends on the way BPO players will take the change. They have to remain focused to grab the opportunities that US recession has offered them. This growth factor is dedicated to the arising prospects in domestic sector.
The BPO industry can turn to the evolving break in domestic market. The reports expose that the domestic BPO market had grown by 50% over the last five years.
This rate is much faster than the growth factor of overall Indian BPO market. Even in this downturn period US will be the biggest markets for Indian BPO services. To sustain this growth factor and remain the booming industry, there are some challenges that BPO sector has to face successfully.
The biggest challenge is the appreciation of rupee against dollar. All the billings for BPO are done in dollar where as the expenditures are maintained in rupee.
This time is the major sustainability test for BPO sector. At the concluding note, Indian BPO sector will continue to boom in the adverse conditions also. It will have the significant growth in coming years and will bring large revenues for Indian Economy. It will polish the shine that India is having in Software sector.