Sample Essay on Contribution of BPO Industry to Indian Economy

Contribution of BPO Industry to Indian Economy

Indian economy is the tenth-largest in the globe by nominal GDP and the third largest when it comes to purchasing power parity [PPP].  Agriculture sector is the largest employer in India, although its GDP share has been declining with time as of 2012-2013. India’s manufacturing industry has been a great contributor of its economy. The services sector which includes telecom, software, information technology, education, travel and other components of its economy has been great. The contributions of the BPO industry are matchless.

Business processing outsourcing [BPO] is a part of outsourcing that involves contracting of responsibilities and operations of a certain business functions to a third-party service provider. The BPO industry has grown rapidly over few years. India has been dominant in the industry as it is one of the mainstay growth catalysts of its economy. This industry has been impacting positively the lives of many people via active direct and indirect contributions in various social-economic considerations.

The BPO industry has played great roles in changing India’s image from a sluggish bureaucratic economy to a nation of inventive entrepreneurs and international players in the technology world.  Business processing outsourcing has become a buzzword for many Indians in 1990s. Today, the entire nation is quivering with the BPO fever. The industry was once focused on multinational companies, but it has grown tremendously into a broad based business venture that has enjoyed great success from the Indian IT software and service organizations. There are different kinds of services offered by BPO.

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These are customer support, technical support, data processing, online research, telemarketing and insurance processing data to name but a few.  All in all, there are many ways through which BPO industry has contributed to the Indian economy and they are;

  • Creation of employment- The rapid growth of BPO has create large number of employment opportunities. Jobs vacancies have increased more than 8 times in the industry  and it has impacted lives of those who join employment sectors of choice more so when it comes to catering, transportation, security and much more.
  • Contributed in regional development-The impact of economy growth spurred by BPO is not only concentrated in urban areas, but also distributed to local areas in India. Local entrepreneurs are also enjoying different services supported by business processing outsourcing sector. Physical and social infrastructures are now available locally.
  • Contributed to growth of other sectors- BPO has played great roles in driving the development and growth of sectors such as telecom, real estate, media, healthcare and retail by creating demand for the output gained from these sectors.
  • Creation of wealth and new infrastructures- The industry has helped many entrepreneurs create wealth and being able to provide for their families. The industry has also made it easy for these entrepreneurs to also invest in real estates, automobiles and much more.
  • Empowering the diverse human assets- BPO is the largest private sector employer in India and it has controlled diverse talents in the nation sharing its growth with millions of Indians. In a sense, it has offered an opportunity for every individual to embrace his or her talent.

The BPO industry with its widespread expertise in developing global institution has contributed greatly to the Indian economy. It has foreseen growth in education, healthcare, financial, media and citizen service sectors. It has also not isolated any area in the nation whether poor or wealthy.

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