In the early 1980s several European airlines started using Delhi as a base for back office operations, British Airways being one among them. The BA captive was finally spun off as a separate organization called initially WNS World Network Services, it eventually became WNS Global Services in 2002.
In the second half of the 1980s, American Express consolidated its JAPAC (Japan and Asia Pacific) back office operations into Gurgaon region. This centre (called the Financial Resource Centre East or FRC-E)was headed by an Expat Harry Robertson, a veteran American Express employee with Raman Roy reporting to him, Raman Roy later on quit Amex to join GE and later on started his own enterprise called Spectramind which got later on merged with Wipro and then later on started Quattro BPO.
In the 1990s Jack Welch was influenced by K.P. Singh, (a Delhi based realtor) to look at Gurgaon in the NCR region as a base for back office operations. Pramod Bhasin, the India head of G.E. hired Raman Roy and several of his management from American Express to start this enterprise called GECIS (GE Capital International Services). Raman for the first time tried out voice operations out of India, the India operations also was the Beta site for GE Six sigma enterprise. The results made GE ramp up their Indian presence and look at other locations. In 2004 GECIS was spun off as a separate legal entity by GE, called Genpact. GE has retained a 40% stake and sold a 60% stake for $500 million to two equity companies, Oak Hill Capital Partners and General Atlantic Partners.
Third party BPOs
Until G.E. most of the work was being done by “captives”- a term used for in house work being done for the parent organisation. In 2000 Raman Roy and some team members from GECIS quit, and with VC funding from Chrysalis Capital started Spectramind. At the same time an organisation called Efunds started in Mumbai and Gurgaon, vCustomer in New Delhi and Daksh in Gurgaon. One of the current big pure play BPO firms, EXL Services, started in April 1999 and in 2012 hit $442.9 million in revenues.just one as the3 However, recently most of the Indian BPOs, even smaller and mid-sized ones, are setting up their onshore presence in the markets they serve. Most of the large players are improving the outsourced business processes by leveraging on their years of experience, and now some are offering more than just plain vanilla BPO processes. KPO, transformation and Consulting opportunities is gaining favor among large third party BPO providers like Genpact, WNS and EXL Services.
Entry of IT majors
In 2002 Spectramind was bought by software major Wipro, and BPO by then had become mainstream like the IT Industry in India. The team that had set up Spectramind went on to start Quatrro in 2006, a BPO specialising in high end BPO/KPO services. By 2002 all major Indian software companies were into BPO, including Infosys (Progeon), Inforlinx, HCL, Satyam (Nipuna) and Patni. By 2003 Daksh was bought out by IBM, and later in 2006 MphasiS was acquired by EDS. Even international 3rd party BPO players like Convergys and Sitel had set up shop in India, swelling the BPO movement to India. Then service arms of organisations like Accenture, IBM, Hewlett Packard, Dell also set up shop in India.
Emergence of Rural BPOs
Booming India Inc has led to skyrocketing real estate and infrastructure costs in Tier-1 cities. BPO industry has thrived all these years because of its ability to deliver services at a low cost. Increasing infrastructure costs, real estate costs, and salaries have raised BPO costs significantly and as a result Indian BPOs in Tier-1 cities are looking at Tier-2 and Tier-3 cities for operation. Few entrepreneurs who had a vision of bringing the rural India into the mainstream of knowledge economy have found an opportunity here – setting Rural BPOs. The transformation of rural India started with the emergence of these Rural BPOs.
Future of outsourcing services to India
Analysts believe that India remains a vital destination for outsourcing and expect its annual GDP to grow at 8–10% for the next decade. In addition, outsourcing efforts to India are held up as an effective remedy for concerns about both Chinese government policy and labour force issues, such as increasing costs and shortages