How to start a BPO call center in India?

Today, I am going to discuss “How to start a BPO call center in India?” So let’s begin… Business Process Outsourcing (BPO) is a thriving sector that relies on a large and proficient English-speaking population. The Indian BPO industry is worth billions of dollars and continues to experience significant growth.

While the COVID-19 pandemic temporarily slowed the growth rate of India’s BPO industry to 5.8% between 2020 and 2023, a strong post-pandemic rebound is expected. Simplified work-from-home requirements and recently liberalized guidelines should drive the industry’s value to reach $8.8 billion by 2025.

Therefore, there is still a lot of opportunity in the Indian BPO industry and many Indian and foreign companies are looking to set up BPO/Call Centers in India. In this article, we will examine the rules and regulations that are relevant to starting a BPO/Call Center in India.

Business Constitution

BPO service providers who offer services like telebanking, telemedicine, tele-education, tele-trading, e-commerce, call center, network operation center, and other IT Enabled Services, by using Telecom Resources, were required to obtain an “Other Service Provider” (OSP) registration by applying to the Department of Telecommunication.

One of the criteria for obtaining OSP registration was that the entity applying for the OSP Registration be a Company registered under the Companies Act. Therefore, it was recommended that all companies that wished to set up a call center/BPO be established as a Private Limited Company or Limited Company under the Companies Act 1956 or the Companies Act 2013. However, the mandatory registration for OSPs with the DoT has been repealed by the 2020 guidelines. So now no registration is required to establish OSP centers in India.

Additional Licenses and Permits: Depending on your BPO’s focus and location, you might require additional licenses such as GST registration, Shops and Establishments Act registration, and others. Ensure full compliance to avoid operational disruptions.

Developing Your Business Strategy with BPO call center

  • Choosing your Niche: The world of BPO call centers is broad. Delineate your area of expertise – will you focus on inbound customer service, outbound sales, technical support, or a different specialized area? Identify a niche where your team can excel and where market demand exists.
  • Business Model: Will you primarily cater to domestic Indian companies or seek to onboard international clients? International BPOs offer significant growth potential but often come with more complex compliance requirements. Determine your ideal business model.
  • Target Market: Define your quintessential client. Consider their industry, company size, and the specific challenges your call center will resolve for them. This clarity will streamline your marketing and outreach efforts as you move forward.
  • Financial Planning: A meticulously detailed budget is the foundation of a sustainable BPO. Factor in start-up costs, including infrastructure, technology, licensing, and operational expenses. Be realistic in your projections to ensure sufficient capital.

Setting Up Your Infrastructure

  • Location: Strategically choose an area with reliable internet connectivity, a readily available talent pool, and reasonable operating costs. Major cities like Mumbai, Bangalore, and Hyderabad are BPO strongholds, but emerging tier-2 cities can offer a compelling cost-to-value ratio.
  • Office Space: Secure an office space designed to accommodate your workforce comfortably. Factor in room for growth, necessary technological infrastructure, and employee well-being considerations.
  • Technology: Invest in robust hardware (computers, headsets, servers) and software (CRM, call center management software, VoIP solutions) essential for seamless call center operations. Research options thoroughly to guarantee scalability and reliability.

Building Your Team

  • Recruitment and Hiring: Develop a robust hiring process to attract highly-skilled call center agents with fluency in the required languages. Leverage online job boards, recruitment agencies, and employee referrals. Focus on candidates’ communication skills, adaptability, and problem-solving abilities.
  • Training: Implement comprehensive training programs that cover not only technical knowledge but also your customer service expectations, and cultural nuances when catering to international clients.
  • Leadership: A strong management team is the backbone of your BPO venture. Hire or promote experienced individuals with a proven track record in call center operations and a commitment to quality.

Finding Clients and Marketing Your BPO

  • Identifying Potential Clients: Actively research potential clients within your chosen niche. Utilize industry databases, attend relevant conferences, and leverage online platforms designed to connect BPOs with clients.
  • Building Online Presence: Create a professional website that showcases your BPO capabilities, service offerings, and success stories. Optimize your site for search engines (SEO) for visibility. Be active on social media to generate interest and engage potential clients.
  • Networking and Industry Events: Attend relevant BPO conferences and industry gatherings. These provide prime opportunities to meet potential clients, industry stakeholders, and stay updated on trends.


Establishing a successful BPO call center in India requires thorough planning, a dedication to quality, and strategic execution. Here’s a recap of the critical steps involved:

  • Develop a clear business strategy
  • Fulfill all legal and licensing requirements
  • Establish robust infrastructure
  • Build a top-notch team
  • Aggressively market your BPO to attract clients

The Indian BPO sector is dynamic and competitive. By focusing on exceeding client expectations, leveraging cutting-edge technology, and constantly cultivating your team’s skills, you’ll pave the way for longevity and success.

Are you ready to tap into the thriving Indian BPO market? If you have further questions or want guidance on how to get started, don’t hesitate to contact us for a consultation.

1 thought on “How to start a BPO call center in India?”

  1. Summary of this blog:
    Starting a BPO call center in India requires thorough market research, identifying your niche, acquiring the necessary licenses, and investing in technology. Focus on training your team for excellent customer service. Consider the legal requirements and infrastructure needed to support operations efficiently.

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