As many as 70 per cent of the top 15 Indian Business Process Outsourcing start-ups will cease to exist in the coming months, analyst firm Gartner has said.
"By the end of 2005, 70 per cent of the top 15 Indian-owned BPO start-ups that offer customer call centre services will be acquired, merged or be marginalised," it said.
Gartner said despite the hype, only a small fraction of customer service outsourcing will be done at offshore locations.
"Offshore call centres, offshore customer service outsourcing only represents a tiny fraction of the market. In 2005, it is expected to be less than two per cent of the total and will grow only to less than five per cent in 2007," it said.
The worldwide market for customer service outsourcing is set to grow from $8.4 billion in 2004 to $12.2 billion in 2007.
Gartner also predicted that through 2007, 80 per cent of organisations that outsource customer service and support contact centres with the primary goal of reducing cost would fail.
Up to 2008, 60 per cent of organisations that outsource parts of the customer-facing process will encounter customer defections and hidden costs that outweigh any potential savings they derive from outsourcing, it said.
"By the end of 2005, 70 per cent of the top 15 Indian-owned BPO start-ups that offer customer call centre services will be acquired, merged or be marginalised," it said.
Gartner said despite the hype, only a small fraction of customer service outsourcing will be done at offshore locations.
"Offshore call centres, offshore customer service outsourcing only represents a tiny fraction of the market. In 2005, it is expected to be less than two per cent of the total and will grow only to less than five per cent in 2007," it said.
The worldwide market for customer service outsourcing is set to grow from $8.4 billion in 2004 to $12.2 billion in 2007.
Gartner also predicted that through 2007, 80 per cent of organisations that outsource customer service and support contact centres with the primary goal of reducing cost would fail.
Up to 2008, 60 per cent of organisations that outsource parts of the customer-facing process will encounter customer defections and hidden costs that outweigh any potential savings they derive from outsourcing, it said.
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