New Delhi, April 4: Inflation and rising costs can make BPO operations less competitive and force companies to search for greener pastures outside India.

“Back-office outsourcing service companies are shifting some of their operations to China, the Philippines, Vietnam and Kenya to stay competitive as inflation and the rising rupee are eating into their profits,” said Manoj Madhusudanan, head of business research at Evalueserve, a knowledge process outsourcing firm.

Bangalore-based back-office services provider HTMT Global Solutions Ltd used to generate all its revenue from India by providing services to clients in the US until a few years ago. However, India now accounts for a little over half of its total revenues.

India’s share in global back-office services will drop to 50 per cent in the next five years from around 60 per cent now, according to the US-based Tholons Inc, which offers management consultancy for offshoring.