The services sector is contributing to almost half of India’s GDP. Therefore, the BPO industry, as part of this services sector, cannot be ignored. BPO industry in India has grown at a phenomenal pace despite the poor infrastructure. This article talks about the status of telecom connectivity in India and tells how choosing the right technology is very important to make a BPO company cost effective. Such technologies are Multi-service WAN switches, Switching technologies, Automatic Call Distribution, Interactive Voice Response and upcoming innovative technologies. The main advantage to this sector in India is well-connected undersea cables and satellites but the telecom cost is still high in India than US. Other infrastructure issues besides technologies are road network and power facilities, which need to be upgraded. India needs to plan for a balanced growth of BPO and requires using world-class state-of-the-art infrastructure facilities to make the system more efficient.

The Indian BPO Industry is already worth $2.3 bn. It is growing at almost 60% a year— the kind of growth Indian IT services industry used to clock in the early 1990s. Biggest global players have started setting up their own operations in India. At the same time, the industry has begun to attract a bit of adverse attention—several US lawmakers have started seeing it as a threat as too many American jobs are shifting to India. At current growth rates, the 2.3 bn BPO industry is fast catching up with the much acclaimed IT industry and is stated to overtake by 2012.

While the first wave of Business Process Outsourcing (BPO) players, who came in primarily for low cost and high quality settle in, the second wave would call for rapid ramping up of operations and a solid infrastructure, which is likely to propel India to move a notch up the BPO value chain.

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