New Delhi: Powered by its continuing dominance in providing low-cost information technology (IT) skills, the Business Process Outsourcing (BPO) sector continues to grow despite the emergence of new competitors like China, Philippines and Indonesia.
According to the latest study on global outsourcing market, India will maintain its low-cost IT skills leverage in the offshore outsourcing market for at least 30 years.
Global outsourcing advisory and research firm Everest said in its 2006 Global Sourcing Market Update that the concerns related to sharp wage inflation and skill shortages leading to an adverse impact on India's offshore cost advantage were grossly exaggerated.
The US-based research agency said India's offshore outsourcing market is likely to maintain its low-cost labour advantage over the UK for the next 30 years.
The country will also retain its low-cost wage supremacy over the US for at least another 18 years, the report added.
Along with its Asian peers like Philippines, India continues to aggressively move ahead with policies aimed at minimising the adverse impact of wage inflation, it added.
After establishing itself in centres like Bangalore, Delhi-NCR, Pune and Hyderabad, the BPO industry is also expanding into non-metro cities like Jaipur, Lucknow and Chandigarh.
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