Demography, Services Sector, Knowledge Process Outsourcing Industry in India to Fuel Economy’s Continuous Growth
The Indian economy is said to be entering another phase of exponential growth and development in the coming years, and the knowledge process outsourcing industry in India will continue to play a hand in the economy’s growth. In the 1980s, India had a low rate of growth, but this changed as India’s economic transformation took place and the nation became a global powerhouse in the ICT, call center, BPO and KPO sectors. Analysts are very keen on finding out how knowledge process outsourcing in India will continue to boost the country’s economy.
Analysts are comparing India’s growth to China’s remarkable growth in the last 25 years of its economic reform process. According to China’s official statistics, the country had a 9.5% CAGR which caused the country’s GDP to grow tenfold over this period. The poverty rate fell from 53% in 1981 to just 2.5% in 2005. The growth and development of the Indian economy in the coming years are expected to show in wealth creation and infrastructure development as well, something which the nation is already starting to feel. Some of the structural factors that have contributed to the Indian economy’s growth – the same factors that will continue driving its development – include the country’s demography and workforce, various industries, infrastructure development and the services sector. In all of these factors, knowledge process outsourcing in India played and still plays a big role.
The boom of India as a popular call center, BPO, ICT and KPO destination did not happen overnight. Nor did foreign investors just chance upon a huge mine of competent workers. Knowledge process outsourcing in India had a good base: the country has the world’s largest middle class, most of who have access to education and are highly-skilled professionals. Knowledge process outsourcing firms in India made it possible for foreign companies to tap into a low-cost yet highly-skilled workforce. These knowledge process outsourcing companies in India set up facilities in Indian localities that had many of the well-educated and highly-skilled people. The knowledge process outsourcing firms in India offered quality outsourced services to foreign firms looking to cut costs but continue to give quality service to their customers. Analysts are predicting that come 2020, India’s demographic advantage over other nations will be significant. The country will have a large working population and a young population that will drive domestic demand with its higher consumption and spending patterns.
The services sector has also been one of the main growth drivers in the country. Technological advancement and the emergence of knowledge process outsourcing companies in India dissolved geographical boundaries in business. India saw the opportunity to convert its knowledge capital into wealth creation with the dissolution of these boundaries. The services sector, including the knowledge process outsourcing services in India, is expected to continue its growth from back-end volume-centric jobs to specialized work.
Considered as another of the country’s growth drivers are the various Indian industries which were able to survive in an era of global competition. The Indian manufacturing industry alone had undergone great operational re-engineering and focused more on quality and efficiency to thrive. Other industries of India, much like the knowledge process outsourcing industry in India, successfully competed with other countries in both domestic and foreign markets. In the next years, India’s industries will gain global prominence and the outsourcing trend will spill over to the industrial sector.
All these factors demanded for infrastructure development to accommodate the economic growth and rising incomes. Investments in properties and the need for new facilities to house knowledge process outsourcing service providers in India demand for more infrastructure projects. According to analysts, there will be significant activity in this particular space in the succeeding years that will eventually become another pillar in the growth of the Indian economy.
India’s demography, workforce, infrastructure growth, services sector and different industries will help firmly establish the country as a major economic player in the global context. If we are to imagine what India will be like in the following years, we can liken it to the knowledge process outsourcing industry in India that has grown to become a key industry in the country. However, India needs to develop a plan that will ensure and help sustain its growth in the following decades.