Indian BPO sector is dominating the outsourcing industry for the last 20 years. The very first western organizations that encouraged and implemented outsourcing eye nations like India and China did so because of the cost-effective operations handling. The basic concern of the organization in the European and American content was to trim their investment of time and money in managing the tasks that do not generate revenue but are essential for the business.
That is why the tasks that were first outsourced were back-office operations, accounting services, HR tasks, and customer support. Out of the several nations that flaunt their outsourcing proficiency, India is leading the race with a vast margin. It is true that the share of India’s call center sector has been curtailed a bit because of the emergence of new nations like Philippines, Malaysia, etc, India is still the undisputed and unchallenged king of the outsourcing sector.
India is the organizations’ favorite choice for outsourcing globally, that’s true. But all is not as good as it seems in statistics. Even though India holds 66% of the call centers in the world, there are a number of roadblocks that need the full attention of the BPO owners.
Some of the bottlenecks are:
Dipping quality of service
Indian call centers are handling thousands of customer calls, messages, emails, social media queries, etc on a daily basis. Even though the agents are well trained, the workload and the pressure of meeting targets have somehow declined the level of service for some of the BPO service providers. Call center owners focusing more on the metrics such as Average handling time and the number of calls in a day are unknowingly putting a lot of pressure on the agents to just finish the conversation promptly. As a result, agents overlook factors like customer experience and personalization while delivering resolutions. This is one of the biggest challenges that Indian call centers have to face and resolve if they want to continue their lead in the outsourcing sector.
The void of cultural difference
The call centers in the Philippines are especially making a mark in the outsourcing industry because of their cultural conformity with the Americans. Indian call centers, on the other hand, lack a bit on this side. The agents offering BPO services in India are sometimes not able to understand the cultural fit of the western nations that is clearly reflected in the conversation and the deliverance of the offered services. This is where Indian call centers need to improve by offering much customer-centric training so that the cultural void is filled with stupendous service experience.
Rising real estate prices
When outsourcing started to placed itself in India, the biggest factor was the low real estate cost because of which setting a call center was not expensive. That’s why companies like Microsoft, Apple, General Motors, Amazon, etc ensure to start their call centers in India. Today, however, the property prices in the metro cities are touching the sky. Recently only, Mumbai’s piece of land (a certain area) was ranked amongst the costliest real estate properties in the world. This is somehow reducing the cost benefit because of which so many companies look towards India for their outsourcing requirement.
Even though there are certain challenges, BPO services in India are still growing. And the reasons for this surge are:
Better availability of qualified resources: India produces 1.5 million engineers and 0.5 million MBA postgraduates each year. In addition, Indians are considered as tech-savvy population making them a perfect resource for offering tech-support services. No other nation offers such a colossal chunk of qualified professionals ready to be hired.
Low hiring costs: Did you know that hiring a beginner level technical expert in India is three times cheaper than in the USA. This huge monetary benefit pulls more and more organizations towards India for their outsourcing requirements.
Boom in Tier 2 and Tier 3 cities: As mentioned the price of property in the metropolitan cities is on the all-time high. So, BPO owners are now turning their attention towards Tier 2 and Tier 3 cities where the real estate prices are still affordable, thus sustaining the cost-advantage factor for the western companies.
Telecom giant: India is no doubt, the leading telecom service provider in Asia. So, India has all the technical know-how and the amenities to provide the best call center service without any interruption. Also, any technological advancement and update that arise in the global market are implemented by the Indian BPO sector.
So, BPO services in India are still catching the attention of business owners in the USA, UK, etc. There are some contradictions and bottlenecks but with Indian call centers evolving and adapting the industry requirement promptly, the lead is supposed to be maintained for a few more decades. Let’s see.