Billing, Rates, BPO, Providers
Billing rates plummet as BPO providers proliferate
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Severe competition has led to a crash in billing rates in the BPO industry. The rates have slipped by as much as 60% since the industry boomed in 1999-2000.
As the market matures, new providers entering the market have pushed rates down. Additionally, countries like Vietnam, China, Brazil and Hungary are emerging as new BPO destinations. Vendors now have a large selection and can receive bids online.Caught in a bind, the bigger, established players from India are looking at high-end processes to garner higher revenue per seat. For instance, a legal outsourcing process fetches between $20 to $25 per hour. And a mutual fund research process commands upwards of $14 per hour in India.
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