Many top Indian BPO outfits under threat, warns Gartner

Financial Express
As many as 70% of the top 15 Indian business process outsourcing (BPO) start-ups will cease to exist in the coming months, analyst firm Gartner has said. “By year-end 2005, 70% of the top 15 Indian-owned BPO start-ups that offer customer call centre services will be acquired, merged or be marginalised,” it said. Gartner said despite the hype, only a small fraction of customer service outsourcing will be done at offshore locations. “Offshore call centres, offshore customer service outsourcing only represents a tiny fraction of the market. In 2005, it is expected to be less than 2% of the total and will grow only to less than 5% in 2007,” it said. The worldwide market for customer service outsourcing is set to grow from $8.4 billion in 2004 to $12.2 billion in 2007. Gartner also predicted that through 2007, 80% of organisations that outsource customer service and support contact centres with the primary goal of reducing cost will fail. more...