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³
India and the Philippines refer to the BPO industry as Business Process Management (BPM) services to denote their greater competence
in diversifying and working closely with clients to understand the intricacies, as well as to innovate and increase the eciency of processes,
thereby creating a strategic partnership.
Emergence of Asian o§shoring
hubs: India leads the way
Over the past decade, major players
in the Banking, Financial Services
& Insurance (BFSI) sector have
increasingly moved their operations
to o¥shore locations in Asia, led by
India and the Philippines, which o¥er
compelling advantages in terms of
operational eciencies and cost
savings.
Asia continues to be the world’s
preeminent o¥shoring destination,
with Asian economies taking 6 of
the 10 spots in A.T. Kearney’s Global
Services Location Index (2016). India
leads the way, accounting for more
than half (56%) of the world’s share
of the global Information Technology
– Business Process Outsourcing³
(IT-BPO) industry in 2015, followed by
China, Malaysia, Indonesia, Thailand
and the Philippines on the top 10 list.
India’s competitive edge
From its debut at the bottom of the
value chain in the late 1970s, to its
current preeminence in o¥ering cutting-
edge software solutions to Western
markets at a competitive cost, the
Indian Information Technology-Business
Process Management (IT-BPM) industry
has had a long and fruitful journey, with
many multinational companies (MNCs)
shifting their operations to India or
expanding their footprint across the
country. Opportunities for significant
cost savings, availability of skilled and
sucient English-speaking manpower
at cheaper rates, and competent
upper-level management coupled with
other benefits, have supported India’s
stronghold as the premier outsourcing
destination in the world. Over 16,000
Indian companies ranging from large
firms to start-ups have created a
global presence in terms of onshore,
o¥shore, and near-shore operations
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