The BPO sector in India is going through a bumpy phase this year

The BPO sector in India is going through a bumpy phase this year. Based on some of the recent indicators, industry observers believe the expected result may be mild compare to the previous five years, which was at 14 percent.

The first quarter of 2007 witnessed the lowest number of contracts signed since the first quarter of 2003. The contract value was also the lowest compare to third quarter of 2002 as pointed out by Mr.Indraneel Banerjee, project director, Technology Partners International, a sourcing advisory firm.

The industry also witnessed a shift away from large multi-process BPO agreements to single function contracts of a smaller size.