Expectations from the top Indian IT-BPOs in 2011

By siliconindia   |   Tuesday, 28 December 2010, 20:10 IST
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Bangalore: With the passing years, the Indian IT-BPO industry has matured to a large extent although it still has to strike the huge global market. To generate an increasing share of revenues from the already emerging segments like engineering and infrastructure management in the future by offering cost-effective delivery options is the main aim. The level of opportunity underlines the immense growth opportunities for the industry players to create innovative service models and broaden its geographical reach, says Dun & Bradstreet in a report that gauges the Indian IT-BPO industry outlook for 2011. The report has insisted on nine major points which predict the expectations from the sector: 1.Consolidation activity is likely to pick up: The adoption of the inorganic growth route to widen the service offerings and enter new geographical markets is the main expectation from the Indian IT-BPO industry in 2011 which has seen a burst in any combination made and the trend is expected to continue in the near future as well. 2.Cloud computing will be the next big wave for Indian IT-BPO industry: By offering immense opportunity and innovative solutions, Cloud Computing is being anticipated of providing a new shape to the Indian IT market by generating new opportunities for the IT vendors and driving changes in traditional IT offerings. 3.RIMS is set to emerge as a promising opportunity: The Remote Infrastructure Management Services has successfully progressed towards a delivery model where the low cost locations enable the services to be delivered by the vendors and captives. Given its strength in offshore delivery of services, India is well positioned to capture a substantial share of this RIMS opportunity. 4.SMBs are expected to emerge as a significant market: An estimate stated that during 2009, expenditure on IT by SMB segment came up to about 30 percent of the total IT expenditure with a value over 300 billion. IT vendors have identified SMBs as the growth driver of the future and are taking steps to address them more effectively. 5.Increased government IT spending will spur growth in the domestic market: The swift expansion of the domestic market is prone to be influenced by major government initiatives such as increased spending on e-Governance and increased thrust on technology adoption/up-gradation across various government departments to bridge the gap of digital divide. 6.Shift in focus from BFSI vertical to other emerging verticals: The BFSI vertical has been the foundation of the Indian IT-BPO industry. Due to a below average growth rate of 3.6 percent in 2008, the BFSI sector declined by around 5 percent which has led the IT vendors to their focus on other verticals such as government, healthcare, retail and utilities. 7.Diversifying from core geographic markets: The Indian IT-BPO companies are anticipated to expand their business from core markets such as the U.S. and UK as these markets were unfavorably affected by the worldwide financial crisis leading to a decline in their overall IT spends. 8.Ceasing of tax benefits for STPI impacts small players: Software Technology Parks of India have played a fundamental role in developing the growth of the Indian IT-BPO industry. But the uncertainty ruling over continuation of tax holiday after March 2011 could slow down future expansion proposals. 9.Rural BPOs will make their presence felt: The Indian BPO companies are slowly stepping towards rural areas to set up delivery centers due to rising attrition rates in urban areas and lower cost of operations in rural areas, which is also supported by growing real estate construction in rural area.