Comment from Teleperformance: India – The BPO Destination for innovation & Digital Transformation
The Indian business process outsourcing (BPO) industry has become the leading destination across the world for BPOs, in comparison to other countries such as Australia, China, The Philippines and Ireland. After registering a CAGR growth rate of 35 per cent over the last two years, India’s IT/BPO industry is expected to continue growing at a healthy 30 per cent plus on an annual basis for at least another four years, according to industry chamber Assocham.
Businesses are starting to see outsourcing as more than just a resolution to cut IT costs, it has now become a key element in helping organisations to remain competitive in the digital age. Much of India’s expertise in IT and other technologies is off the back of a growing appetite amongst companies for process improvements, bottom line profitability and customer satisfaction advances.
Digital transformation is top of mind for every company across multiple industries. Particularly in the West, businesses in the UK & US are increasingly turning to India to navigate the headwinds of change which is transforming their industries. Most UK businesses are planning to invest in AI over the next two years, as just one in ten leaders believe the UK to be a world leader in digital transformation.
The industry as a whole continues to change, from offshore to nearshore and further diversification of digital capabilities. This has led to the Indian BPO industry become the fastest growing segment of the IT Enabled Services industry in the country.
As the market matures, consolidation is a strategic way for BPOs to empower survival and breed success. Most IT-BPO companies in India are on an acquisition spree to build growth momentum. Experts say the rate of M&A’s in the IT & BPO industry is set to increase, with at least half a dozen deals expected to be completed before 2019. One of the biggest acquisition in India this year was Intelenet Global Services who was bought by CAC listed company Teleperformance.
By harnessing the power of next generation technologies such as Artificial Intelligence and packaging it into a service offers the sourcing world a way of future proofing itself as a valuable asset for any company who are not digitally-native.
Bhupender Singh is the CEO of Teleperformance Digital Integrated Business Services, specialising in digital transformation and technology innovation