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	July 11, 2005 Indian BPO Industry Does An About Face Now Focusing On Transactional, Not Call Center, Opportunities by Bill Martorelli with Stephanie Moore, Samuel Bright

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Executive Summary

Faced with relentless competition on price, high attrition rates, and commoditization amidst their once-core contact center services, Indian BPO players are now virtually united in pursuing transactional opportunities. Leading targets include the major horizontals, such as HR and finance and accounting, as well as specific vertical niche opportunities in industries where they are already present, including financial services (mortgage processing) and insurance (claims processing), to name just two examples. Customers may feel comfortable turning to suppliers that have already proven their mettle with application development and maintenance services, but the transition poses challenges for customers. In many cases, the Indian BPO providers are growing these businesses from the ground up, rather than acquiring established BPO entities, as they did to fuel their initial BPO market thrust. Customers must be willing to allow suppliers to learn on-the-job or turn to more established, specialty providers.

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