BPO backlash will hound IT firms

Although the year 2003 was a boom period for the Indian IT industry, analysts are not fully confident in predicting a bright future. Y2K3 showed clear signs of revival, for the globally recognized Indian IT industry. Analysts and even industry representatives are backing off from predicting the business to be as bullish if not more in 2004 as it was in 2003.

Their fears arise from the ever-increasing protests from the west, coupled with complaints on lack of quality of service. Indian firms have shown their resilience in 2003 and proved that they are the most attractive outsourcing destination. And even though the protests will continue and be a cause for worry, but the year 2004 does look relatively good for the Indian IT Industry.

India's main strength in projecting itself as an extremely capable outsourcing superpower has been its vast pool of English speaking manpower, its education system and training programmes. The fast growing BPO industry has almost turned the country into an electronic home-keeper to the world, taking care of a host of routine back office operations for the multinational giants.