BPOs add higher value services to their portfolio to beat growth stagnation
March 24, 2014, The Economic Times
Faced with the chilly wind of margin declines and slower growth, Indian outsourcing firms are looking to add higher value services to their portfolio even as they move more work to smaller towns and cities to cut costs.
Pricing troubles in the sector began in 2006 with the entry of numerous players and came to a head in 2008 after the global economic crisis which saw salary levels in the West drop, reducing the gap with what is paid in India.
Rakesh Khanna, chief operating officer of US-listed IT firm Syntel, said when his firm launched BPO services a few years ago, it consciously avoided voice. "We chose a path of highend transaction business — helping our customers manage risk. Hence, we don't see price decline that many BPO players are experiencing," said Khanna.
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