Competitive Advantage Case Study

BPO: Will India Sustain its Advantage?

OR

Abstract:

By the end of 1990s, India was looked upon as a prominent outsourcing destination for IT projects. The availability of sufficient IT resources, quality manpower at cheap cost and the key geographical location benefited India

The seeds of Business Process Outsourcing Industry were sown in India, by British Airways, HSBC and GE in 90's. Gradually the industry grew, as many MNCs outsourced their IT related lower end jobs to India. With the growing hype of job attractiveness in the industry, the salary levels of employees increased, which was considered to be a hurdle for the prospects of country. Also, India had to face competition from countries like Philippines, South Africa and China who were growing fast. What steps would Indian companies take to revive India’s future in BPO industry was to be seen

The case discusses the various parameters on which India had gained competitive advantage in past. Further, it explains factors on which the competing countries were trying to turn the trend towards them

Pedagogical Objectives:

• To study the various parameters that resulted in the success of BPO industry in India
• To study the emerging threats to the BPO industry in India
• To analyse the future prospects of the India in the global BPO industry arena

Keywords : Business Process Outsourcing; IT; ITES; India; Outsourcing; High talent pool; Value chain; Cost advantages; IT infrastructure; Core Competency & Competitive Advantage Case Study; NASSCOM