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News >> Technology >>
New service lines to drive growth for ITES-BPO sector
By siliconindia
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Thursday, 12 June 2003, 19:30 IST
BANGALORE: NASSCOM, the apex industry association of IT Software and Service companies in India, today underlined the need for the ITES-BPO industry to target new service lines to widen their gamut of services to achieve sustained growth. Indian vendors have so far been able to garner a market share of 2% in the ITES-BPO segment and will need to tap new service lines such as Engineering/R&D, logistics and sales to capture a share of 4.8% by 2008.
Speaking on the first day of the annual NASSCOM ITES-BPO Strategy Summit, Som Mittal, Chairman, NASSCOM said, "Offshoring to India is on the rise as the Indian ITES-BPO industry has not only provided significant cost savings but also added tremendous value to its customers businesses. This trend is irreversible notwithstanding concerns over Anti-outsourcing sentiments in some corners".
"The industry should continue to look at new service lines and extend its range of offerings horizontally to its global customers. Broadening the services portfolio is not only useful in building scale, but also facilitates stronger proposition for customers and better capacity utilization for vendors", he added.
Within the ITES-BPO segment, Customer Care continues to be the dominant segment with both revenues and employment growing by more than double in 2002-03 over 2001-02. Other areas that witnessed significant growth were Administration and Finance registering revenue growth of 67% and 70% respectively over 2001-02. Segments such as Payment services and HR too have registered a considerable growth in revenues at 90% and 50% respectively in 2002-03 over 2001-02. In terms of manpower, Customer Care employs the largest number of people followed by Content Development, Administration and Finance. The number of employees in the Administration and Finance segment has grown by 78% and 60% in 2002-03 over 2001-02.
Kiran Karnik, President, NASSCOM said, "There is a greater need for the Indian ITES-BPO industry to begin broadening its reach and target new service lines such as Content Development and HR. Currently we have very minimal presence in these high-growth service lines and there is a need for vendors to build domain knowledge and expertise to tap the potential."
"A significant potential also lies in new service lines such as Sales, Legal, Engineering/R&D and Logistics. Worldwide ITES-BPO spending for 2006 is projected to be US$ 165 billion for Sales, US$ 163 billion for Legal, US$ 123 billion for Engineering/R&D and US$ 308 billion for Logistics. This gives us an opportunity to scale up and tap these areas to accelerate growth", Karnik further added.