Employees working for the BPO industry may find it worthwhile to fasten their purse strings tighter as there could be as many as 2.5 lakh jobs lost in the first quarter of 2009 if an apex industry association is to be believed.

The Business Process Industry Association of India (BPIAI) President Samir Chopra has been quoted in the Economic Times as saying that the economic slowdown in the US and other developed countries could lead largescale job losses in India.

However, Chopra also sees a silver lining in the clouds where he believes that the recession would compel more companies in the US and Europe to look at outsourcing as a way to cut costs and improve efficiencies.

The article in the Economic Times also quotes Praveen Sengar, Head of Software, Services Industry vertical at IDC as stating that the slowdown would adversely impact expansion plans of the industry as new clients would taken longer to sign up. He also expressed the view that such a slowdown will result in consolidation and enhance diversification from non-core activities.

On his part, Chopra sought urgent policy measures to bolster the industry, more so with the small and medium enterprises. He suggested both fiscal and administrative measures like extending tax relief and encouraging exports via a market-development program funded by the government.