It has been a long time since BPO services have spread its wings in the Indian subcontinent. Being present for almost 3 decades now, BPO has surely influenced the economy of this country as well. When this industry was in its infant stage in India, no one had imagined that it would grow out to become one of the leading industries of the country and would command such a strong presence. At the present moment, BPO industry is gigantic and is a major contributor towards the country’s GDP as well.
Though the history of the emergence of this industry dates back to 1960s in the United Kingdom, but it was only after the introduction of LPG policies in the early 1990s that this industry saw a new dawn in India. The repercussions of the presence of this industry are many, but a few major ones are highlighted below.
- Bringing in FDI:
One major way in which BPO industry has impacted the economy is that the emergence of this industry has brought a lot of investments in the country. Companies operating overseas had outsourced their operations and due to this the payments also came in the denominations of foreign currency only. Suddenly, economies of these countries (to whom the processes were outsourced) witnessed a huge rush of funds in exorbitant amounts. And these funds were captured and utilized in the best fashion to bring good to the masses.
- Employment creation:
Another major advantage of this industry has been that it has provided huge employment opportunities to the citizens of the country. One major concern of any country is unemployment, but since the time BPO industry has come into picture, this problem has been curbed from the root. In countries like India and the Philippines, this outsourcing industry offers excessive amount of opportunities across various verticals. Because BPO has helped in solving this major unemployment issue, many small issues have been taken care of by themselves.
- Regional development:
This inflow of money and generation of employment has led to development across various sectors. Due to the increase in demands of work and having enough money at their disposal, the government and business houses collectively invested this money towards the development of infrastructure. To persuade the business houses in investing more towards development, government started giving subsidies and leverages which pushed these business houses to expand their operations and build more and more infrastructures across varied realms.
- Shaping into service-based economy:
The emergence of BPO industry in India has helped it to a large extent to transform into a service-based economy. In the earlier times, India was known as a land of agriculture but since outsourcing became a hot trend, this country has gained recognition in other facets as well. At present, BPO industry a major contributor towards the country’s economy, as several businesses avail BPO services from the solution providers in India.
- Bridging the gender divide:
Women, since the beginning of time, haven’t been the first preference when it comes to workplaces. But this stereotype was soon smashed to bits since this outsourcing industry gained its glory. Especially in this industry, women were preferred, the reason being that women are naturally better orators, have a softer pitch and their voices are much more pleasant to hear. These reasons perfectly matched the requirements of this industry and women were able to deliver high quality BPO services more effectively.
- Attainment of market share and mindshare, globally:
Yet another benefit of this industry has been that it has enabled the developing nations like India and the Philippines to gain global mindshare. These countries were informed and well acquainted with the needs of the companies and this helped them in positioning themselves as proficient outsourcing destinations. In addition to this, these countries gained the positive image of providing great services in the most cost efficient manner. As a result, businesses from diverse regions started availing top-tier BPO services rendered by solution providers in India.
Impacts are many but a few of the major ones have been mentioned above. This business of outsourcing has brought in money which gave employment, and this further led to flow of money within the economies that finally enabled the growth of these economies. As BPO industry has helped India a lot in tackling various issues, the solution providers in the country leave no stone unturned to match expectations of global clients. Therefore, experts want businesses worldwide to outsource their multiple non-core functions to BPO solution providers in India.