Processing .....please wait.. 
The article has been forwarded.... 
News >> Technology >>
BPOs' earnings to touch $1 B
By siliconindia
|
Monday, 16 April 2007, 19:30 IST
NEW DELHI: Telecommunications, financial services and government sector customers will enable the revenues of India-focused call centres and back-office services companies to cross the $1 billion mark (Rs4,242 crore) by 2010, more than double this year, predicted tech researcher Gartner Inc.
While reporting the story, Mint noted that local business process outsourcing (BPO) services companies, led by Infovision Group Ltd, Magus Customer Dialog Pvt. Ltd, and Sparsh BPO Services Ltd, will, as a result, grow at a compounded rate of 100 percent until the turn of the decade.
T.J. Singh, research director at a local Gartner unit told the publication, ?The next three years will usher in a shift for the BPO market in India, from a primarily offshore focus to both domestic as well as offshore.? Currently, services built around customer acquisition and retention, payroll and human resource, finance and accounting, mortgage, cheque, claims and insurance processing, and supply management are seeing maximum demand.
The competition among telecom, banking and financial companies on a global level has increased dependence on call centres and BPO service providers, added Singh. ICICI Bank, for instance, handles 1.5 lakh calls every day, growing at 20-30 percent annually since about seven years ago.
Such strong is the demand that Infovision, a Rs200 crore BPO company that earns about two-thirds of its revenues from its nearly 50 domestic clients, has set a target of growing its sales fivefold in three years. It is looking for business from the government as well as state-owned companies.
Magus Customer Dialog, a BPO firm which has been growing at a compounded rate of 60 percent over the last three years, with current revenues between Rs 40 and Rs50 crore, is focused exclusively on the domestic market. It serves customers such as Bharti Airtel, Hutchison Essar, Idea Cellular Ltd, Wipro Ltd, Jet Airways Ltd and Shoppers Stop Ltd.
?We are slowly expanding (our business) in other sectors such as banking, financial services, insurance, retailing etc. and are confident of growing between 100 percent and 150 percent in the next three years,? Shyam Sunder, director at Magus told Mint.
It has set a target of notching up Rs250 crore in revenue, and a 14,000-strong workforce, more than three times the current 4,000 by 2010.
With most telecom companies, such as Idea Cellular and Hutchison Essar looking to outsource customer care services, the opportunity for homegrown call centres and BPO firms will only increase.