The Gartner report released about 4 days back is all that a report should be. Alarming, shocking and meant to make folks sit up and take notice. Propel them enough to go out and buy the report. After all the primary business of all analysts is to first and foremost sell what they generate.
Having said this, is the prediction that about 60 -70 % of all call center BPOs will shut shop true or not?
In one word the answer is YES.
In one word your question may be WHY?
The answer will now have to be a little longer. Most of these BPOs have been started in the first flush of enthusiasm by every Tom, Dick and Hari in search of the pot of gold at the end of the BPO rainbow. Most of them lack a solid business model, are undercapitalised or lack sheer grit and execution capability that would separate the men from the boys. What ever the reasons for the weakness, there has to be some element of culling that nature has ordained.
Is this good? Not if you are one of the those going to be culled.
But if you are the one who is strong enough to survive then it is good.
Those who are going to close will throw up lot of trained talent and other resources which the strong can grab and emerge stronger.
I can already see this happening and it is good for the industry.
Venkat
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