Indian BPO can grow to $50 Bn by 2012: Nasscom

Indian BPO can grow to $50 Bn by 2012: Nasscom

Thursday, 31 January 2008, 05:32 Hrs   |    1 Comments
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Bangalore: The Indian BPO (business process outsourcing) industry should be booming in next four years, a study here has said and forecast that it would touch $50 billion by 2012 from the current $11 billion and create over two million direct jobs in the country.

The study, "Roadmap 2012 - capitalising on the expanding BPO landscape", conducted by the National Association of Software and Service Companies (Nasscom), the premier trade organisation of Indian IT industry, and global strategy firm Everest Group, was released here Tuesday.

"The report indicates a possible target of $50 billion by 2012 for the Indian BPO industry. This reflects a five-fold growth over the next five years and can create up over 2 million direct jobs in India," Everest Group Country Head Gaurav Gupta told reporters at the release of the study.

The Indian BPO sector has evolved tremendously since its inception, not only in its size but also in terms of maturity - service lines, service delivery capability and footprint, said Nasscom president Som Mittal.

"This $11 billion industry today employs more that 700,000 people across 25 countries and accounts for approximately 40 percent of the global BPO offshore market, thereby creating huge job opportunities and impacting the economy. The future potential is even larger. This study not only estimates the opportunity ahead but also lays down specific agenda for all stakeholders to help achieve this," he said.

The study outlines the need for significant collaboration between the industry, government and other stakeholders on a range of initiatives including education, infrastructure, country-competitiveness, and domestic BPO.

It suggests eight action themes for the Indian BPO industry to realise its potential.

"India is best equipped to capitalise on the available opportunities but to ensure these opportunities are not lost to other offshore destinations, stakeholders of Indian BPO industry need to act on eight action themes for the Indian BPO industry to realise its potential, and to maintain and accelerate the growth trajectory over the next 5-10 years," it says.

The themes include protection of India's cost advantage to ensure that buyer interest, adoption and growth are sustained, creation of BPO hubs' with enabling physical and social ecosystem to drive BPO-led growth broader and deeper within India, increasing employability and accessing untapped talent pools by creating greater linkages between the current education system and the needs of the BPO industry, and facilitating the development of BPO-specific education models.

The findings of the study will be discussed at the Nasscom India Leadership Forum 2008, the largest IT Summit in Asia, to be held in Mumbai between February 13 and 15, Mittal said.
Source: IANS
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Reader's comments(1)
1: Indias BPO industry has evolved and matured to present higher-end services that require judgment-based analysis and domain expertise, rather than function-specific rules-based performance parameters alone. As service providers strive to offer end-to-end services we see BPO falling into different segments. At one end of the spectrum is the traditional rules-based transactional outsourcing while at the other end is judgment-based transaction processing and full-service business process outsourcing.

India has won its spurs as the world’s outsourcing destination of choice. Currently the country has a commanding share of the global outsourcing market.
India is undoubtedly the most favored IT/BPO destination of the world. This raises the question why most of the big MNCs are interested in outsourcing their operations to BPOs in India. The answer is very simple- India is home to large and skilled human resources. India has inherent strengths which have made it a major success as an outsourcing destination. India produces the largest number of graduates in the world. The name of India has become synonymous with that of BPOs and IT industry hence the name BPO India.

Besides being technically sound, the work force is proficient in English and work at lower wages in comparison to other developed countries of the world. India also has a distinct advantage of being in a different time zone that gives it flexibility in working hours. All these factors make the Indian BPOs more efficient and cost effective. In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are looking to BPO India.

A subset of outsourcing, Business Process Outsourcing (BPO) involves contracting the operations and responsibilities through a third party service provider. From the last couple of years, the BPO industry has evolved as the most substantial sector in the Indian market. India has emerged as the most favored location for all Bpo services across the globe. This has accelerated the Indian economy to the heights, progressively boosting the statistics depicting the growth in the years to come and it has been however forecasted that by 2020, more than 80% of the world of business process outsourcing services will be served by the Indian companies. Marked as the best place to attain superior quality services globally, the BPO industry is strengthening its foundation in India.

India states that the Indian IT-BPO sector has already achieved a target of USD 75 billion in export revenues by 2010.
Posted by:johnmiller - 18 Jan, 2011