OK, flippant headline – India has of course not been out of the business process outsourcing game, and isn’t likely to be for a while. However, we’ve heard (OK, and written) the ‘is India’s outsourcing star on the wane?’ story so many times we had to include this if only in the interests of balance.
Essentially the Times of India is reporting that Jharkhand is emerging as a new BPO destination. This is mostly down to government incentive schemes.
OK, governments offer incentive schemes and some of them are very attractive, we get that. However, if the underlying business isn’t right then you can end up with a lot of initially appealing business that remains short term only becauee it ends up unsustainable. Our guess is that India in all of its regions has an underlying strength; however, the sort of BPO being put forward had better not be the same as the sort that worked a few years ago. Things have moved, other territories are serious and robotics isn’t so much coming as arrived.
We’ll keep you posted on this and other territories.