Software and BPO industry in India has provided a major boost to the country's economy. It provides employment to millions of Indians. BPO industry in India is worth $11 billion. During 2007-08, Indian information technology industry experienced a slow down and revenue growth rate has been brought down to 21 percent from previous year figure of 41 percent. But it's still predicted that Indian BPO and IT industry will grow to become a $132 billion entity by 2012. Banking and financial services contribute nearly 40 percent to India's outsourcing industry.
In 2008, a study listed 6 Indian cities of Bangalore, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune, among the world's top 10 outsourcing destinations.
China has been a major competitor for the Indian outsourcing industry. But, India offers a cost advantage that is not easy to beat. But, rising wage bill of IT professionals and global financial meltdown is challenging India's position as a preferred destination for outsourcing business processes.
Nevertheless, the big boom in the BPO industry in India has generated a lot of employment opportunities with lots of benefits to their employees. Some of which are in the form of:
- Provident Fund;
- Gratuity;
- Group Mediclaim Insurance Scheme;
- Personal Accident Insurance Scheme;
- Subsidized Food and Transportation;
- Company Leased Accommodation;
- Recreation, Cafeteria, ATM and Concierge facilities;
- Corporate Credit Card;
- Cellular Phone / Laptop;
- Personal Health Care (Regular medical check-ups);
- Educational Benefits;
- Performance based incentives;
- Flexi-time;
- Flexible Salary Benefits;
- Maternity Leave;
- Employee Stock Option Plan; etc.
Generally, growth of BPO industry is largely influenced by the existing locational factors of a country. It includes size of workforce, wage differentials, stable and conducive business environment, telecom infrastructure, trade restrictions and above all the language capabilities. India can boast of all these attributes barring few deterrents.
