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Indian BPO sector on growth path

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Indias BPO sector grew 6 percent this year but looks like  the situation was improving rapidly. But now again, people are raising a flag of caution. Vikram Talwar, chairman of Nasscom’s BPO Forum and executive chairman of BPO company EXL Service, said bad news was still around. "The European crisis looms, the US numbers are still not good. A double dip is possible. We should be able to take those challenges,"he said at the inaugural session of Nasscom’s BPO Strategy Summit 2010.

Some IT sector analysts at the event shared those sentiments. Ian Marriot, vice president (research) in Gartner, said there was continued uncertainty both at the country level and the industry level. "There are surges, and then there is a falling back,"he said. Everest Group chief executive Peter Bendor Samuel described it as "two steps forward, one step back”. "There is a definite broadbased recovery, but unlike previous recoveries from recession, this is a ragged recovery and that’s somewhat disconcerting,"he said.

Nasscom, however, is still projecting good growth. Som Mittal, president of the IT industry body, said the BPO sector was expected to grow by 15-17 percent this year. "Even though last year was bad globally, we still managed a 6 percent growth because the sector is now able to not just reduce costs for customers, but also provide solutions for their problems,"he said.

Marriott emphasized the need for BPO providers to become strategic partners of their customers. "Customers want to create organizations that can navigate through downturns and then be able to take advantage of the market when the recovery starts. So they are looking for partners who can help them with that. That means your traditional entry points have to change,"he said.

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