Top Reasons Why the Hyderabad BPO Industry is still Successful

bpo services hyderabad

Top Reasons Why the Hyderabad BPO Industry is still Successful

Outsourcing of various non-core services appeared as a mainstream business in the mid-1990s. Since then, the outsourcing industry, which later came to be known as business process outsourcing or BPO, has been through various transitions. Despite the volatile global economic situations succeeding now, the future of the Hyderabad BPO industry continues to remain positive for many reasons.


Initially, Hyderabad was chosen as an apt alternative to in-house processing considering many positive factors including large English-speaking workforce & availability of tech-savvy manpower. But it is the operational cost reduction by outsourcing the business process services to Hyderabad that makes the city a suitable destination. Companies are enjoying as much as 50-60 percent of cost reduction by outsourcing to Hyderabad.

Competent Talent Pool

Despite the stiff competition from The Bangalore, Mumbai and other North cities, the Hyderabad BPO industry still remains an attractive destination because of the availability of vast skilled labor and their proficiency in understanding progressive technology. Companies, lately, have started realizing that outsourcing is more than just cost arbitrage and thereby zeroing in on Hyderabad for enhancing the business productivity along with efficiency.

Leveraging Cost-advantage From Tier II Cities

The existence of a huge number of tier II cities in the country is the biggest advantage for the Indian BPO companies which find working in such cities to be cost-effective. Besides, the ascending cost of living in these cities has forced the companies to begin operations in the rural and urban regions as it seemed to be promising to importantly reduce the overhead costs in the long run.

Human Resource Advantage

Though some of the North cities are rising to be at par with Mumbai in providing cost-effective business process outsourcing services, these cities lack sufficient human resources to cater to the global market. Hyderabad, on the other hand, with its large skilled professionals is driving the BPO industry, thereby proving it to be an perfect destination for outsourcing services.

With the world economic situation remaining saturated, the outlook for the global business process outsourcing industry is expected to be positive in the medium to long term. And, given these advantages that Hyderabad has over the other cities, it is surely at a leading stance in the BPO industry.


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