Subprime Crisis May Be Windfall for Indian BPOs

NEW DELHI: The sub-prime crisis in the US may turn into a windfall for India’s outsourcing industry. According to consultants and BPO insiders, the new lending laws, being worked out in the US, will significantly increase outsourcing by American banks to India. These new laws will be fairly stringent and will require greater outsourcing as lowering costs assumes prime importance. All of which will be a huge opportunity for Indian BPO and IT companies which already have some of America’s top banks as clients.

Over 40% of India’s $8-billion business process outsourcing firms’ revenue comes from the banking, financial services, and insurance sectors.

“With more stringent norms for loan origination coming into force, the US companies will have no option but to offshore to keep costs low."

(HT: Sanil Kori)