The Hindu Business Line : BPO, ITES growth put at $24 b by '08

THE size of BPO and ITES (IT Enabled Services) business in the country has been pegged at $21-$24 billion by 2008. Global outsourcing of BPO and ITES operations to India will continue in the years ahead, according to Mr S. Mahalingam, Chief Financial Officer of Tata Consultancy Services.

Speaking at a national conference on ITES organised here by the Confederation of Indian Industry, Mr Mahalingam said the ITES segment would grow at a rate which would be faster than the growth in IT services. In 2002-03, the ITES industry in India generated a revenue of Rs 11,700 crore, a rise of over 65 per cent from 2001-02.

Growth in the ITES segment would provide a boost for employment generation and increased foreign exchange earnings. The size of the global market for ITES is expected to touch $1.2 trillion by 2006. Besides call centres, this would be accounted for by online information, medical transcription, back office processing, etc.

He said that India had the right ingredients to garner a sizeable chunk of the global ITES market. India's advantages include the availability of English-speaking manpower, availability of qualified manpower at competitive costs and a virtual 12-hour time lag with the US.

Speakers at the conference felt that ITES hubs should not be confined to large cities alone. Instead, infrastructure should be created to facilitate the setting up of ITES outfits in smaller cities and towns to reduce the cost of operations. According to Mr Pramod Bhasin, President of GE Capital India, the ITES industry in India would witness "unparalleled growth" in the next 3-5 years. This growth would be fuelled by the need for companies to outsource with a view to reducing costs. Only 40 per cent of ITES and BPO activity would be call centres while the balance would offer services related to healthcare, R&D, education and training, finance, insurance, tourism, hospitality, etc.

Mr Bhasin said the growth in ITES and BPO operations in India will prompt GE Capital India to gradually ramp up its manpower strength to 20,000 from 12,000. "If India can garner 10 per cent of the global BPO market, we shall beat all predictions," he said, adding that the need of the hour was to identify and adhere to quality standards. Mr Kapil Dev Singh, Country Manager of IDC India, said the years ahead would witness acquisitions and mergers in the ITES arena.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Dispute over technology interface — Status quo on limited mobility; keep service distinction: TDSAT

Inconsistent verdict, says COAI

Go slow, they're at work

MNCs lose ground in Sensex revamp

BPO, ITES growth put at $24 b by '08