India forerunner in global IT-BPO sector: Report

NEW DELHI: Availability of qualified and affordable manpower, positive business environment among others has helped India to maintain its status as forerunner in the global IT-BPO industry, but faces a growing challenge from Philippines, a report by Cushman & Wakefield said.

"Globally India continues to be the forerunner in the IT- BPO industry. However, a number of other South and South-east Asian countries are increasingly gaining share in the global IT-BPO Industry," the report said.

India outperforms its counterparts, Philippines, China, Malaysia and other South Asian countries in IT-BPO industry due to availability of English speaking and qualified talent, higher cost arbitrage, rapidly growing domestic market, stable political system, positive business environment that fosters FDI in the sector among others, it added.

India's advantage also lies in its strong domestic demand, the geographical diversity and the growth potential in Tier II and Tier III cities, the report said.

However, it said Philippines is emerging as a strong competitor.

"While India is at the forefront in the IT industry, Philippines is emerging as India's competitor in voice-based operations. The major growth of voice-based operations in the country is primarily because of the educated and English-speaking talent pool," it added.

Although it seems to be an attractive destination due to cheaper availability of talent and government support, there are concerns with the market especially with regards to the higher level managerial positions and capability in software development, it said.

China's capabilities in the low cost manufacturing and research are helping the growth of its IT industry apart from its increasing foothold in the BPO and data centre segments, the report said, adding that language constraints pose a challenge to the country's plans to make it big in global BPO services.

Malaysia, Indonesia and Vietnam have been successful in attracting IT/ITeS activities to their nations, it added.