Outsourcing business is all time high in India today
Released on = June 8, 2006, 3:03 am
Press Release Author = KPOAsia.com
Industry = Software
Press Release Summary = Due to abundance of educated labor in the country, future
looks bright for Indian industry. Find out which are top ranking ITES companies in
India today.
Press Release Body = Nasscom (National Association of Software and Services) has
ranked Genpact, WNS and Wipro BPO as the top three third party ITES-BPO companies
India in its report published recently.
Nasscom is the premier trade body for IT and “voice” of the industry in India. It
issues many reports about happenings as well as provide vital information for the
industry. It has released the rankings for the top 15 third party ITES companies in
India. These rankings are based on revenues earned by the companies in a financial
year 2005-2006.
According to Nasscom report, ITES, BPO segment grew 37 percent. This segment alone
earned $6.3 billion revenue for the IT industry, which totally generated $23.6
billion for the financial year.
Kiran Karnik, presided of Nasscom said “In 2005-06, the industry size and growth
exceeded our forecasts, reflecting strong demand. The entire software and services
industry is expected to record revenues of $36-38 billion in FY07; we expect the
ITES-BPO
segment to continue its growth momentum and expect exports to
cross $8
billion during FY07. The growth in the sector is being driven by steady increase in
scale and depth of existing service lines; the addition of newer vertical-specific
and emerging niche business services; continued expansion of service portfolios and
higher value processes.\"
\"In addition, the BPO
industry has significant headroom to grow, with the
outsourcing potential being 12 times current revenues. The industry is likely to
continue to witness an increase in M&A activity which could lead to a significant
consolidation in the BPO industry, in the process creating world scale players,\" he
added.
The major focus of industry will be on how to make India as the prominent hub for
global outsourcing and make Indian companies more competent in rising competitive
environment.
Following three major services are provided by ITES companies in India.
. Financing
. Human Resource Administration
. Customer services
These three services alone are contributing nearly 90% to revenue for the industry.
This growth is expected to continue without any significant change in current fiscal
year 2006-2007, industry sources said.
Two major reasons for this growth are
. Recruitment by the leading ITES companies. Employment has risen by 32% approx.
. Besides overseas, domestic market has also witnessed significant growth with
estimated local
outsource value of $860 million in FY 2005-06
Indian IT industry is looking for huge potentiality in other under-developed markets
such as Pharma. This sector is believed to be having the worldwide market of $17
billion in 2004 and expected to exceed $49 billion by 2011, growing at CAGR of 16.3
percent.
Another market that could be interesting for Indian ITES industry would be legal
services market. This is fast upcoming segment believed to grow to $6 billion by
2010
Nasscom in the year 2001-2002 initiated the exercise of introducing the Top 15
players -- (third party call centre and BPO players) within the ITES sector. This
was based on the information collected from the survey -- received from Nasscom
member companies and further revalidated with the STPI (Software Technology Parks of
India)
However, Nasscom has revalidated its ranking
pattern after consulting with industry
experts. It now, validates ranking based on US GAAP (Generally
Accepted Accounting Principles in the United States) analysis.
The present year ranking submitted is
also based on GAAP
Please do visit at http://www.kpoasia.com to know more about outsourcing.
Web Site = http://www.kpoasia.com
Contact Details = PBCNet Pvt. Ltd.
69, Nariman Bhavan,
Nariman Point.
Mumbai.
India
Tel : +91-22-22021024
2008
