Wednesday, November 19, 2008

BPO Industry in Asia

Talking about the BPO industry in Asian region there are only few key players dominate the industry. Such as India and China. India continues to remain the most favored destination by far for information technology (IT) and IT-enabled outsourcing.  
 
India and China has the potential to develop a large IT-BPO (Business Process Outsourcing) industry, but will not be in a position to overtake India, a report released by The National Association of Software and Services Companies (NASSCOM), the consortium that serves as an interface to the Indian software industry and Indian BPO industry. According to the report, released August 21 2007, China will become a major player in IT-BPO industry because of the substantial domestic market potential, a sizable educated workforce and strong government emphasis on developing the sector. China is dominating the market as an alternate market, competitive destination and potential partners for India. 

The software and services revenues in China is estimated to grow at 22 percent to reach $28 billion by 2010 including domestic market at over $20 billion, the study said. In comparison, India's IT exports are set to touch $60 billion by 2010. 

According to NASSCOM, China could pose a threat to India's dominance in IT-BPO industry, but low usage of English language and differences in business culture could pose as challenges in its growth.

In Asian region China's exports in software and services space is dominated by application development, coding,testing and localization services while India's exports in the same segment include application management, infrastructure services, offshore product development and engineering services

India, which has the largest pool of English-speaking graduates outside the United States, therefore it will be a great chance for Indian BPO industry to remain as a leader in the Asian region.
China is a key product development center for GE, Intel, Microsoft, Phillips, and other large electronics firms, for hardware design and embedded software. so it will be a slight opportunity for compete with India.

Small destination like Bangladesh is introduced as medical transcription services such as Digital Divide Data. 

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