A 6-month study by Nasscom and Everest Group — ‘Roadmap 2012 - Capitalising on the expanding BPO landscape’ suggested that India is poised to achieve the targets based on its current capabilities, tools and early adopter advantage.
New growth wave
The study that will be available in February 2007, provides a comprehensive fact-based view of capabilities of the sector, opportunities and growth imperatives for Indian BPO industry and its key stakeholders. It sets the stage for next wave of the industry’s growth.
Releasing the findings, Nasscom President Som Mittal said, “Indian BPO industry is currently $11 billion, employing 700,000 people operating from 25 countries accounting for approximately 40 per cent of global offshore BPO market. It has the potential to attain a five-fold growth to reach $50 billion by 2012, employing 2 million people.”
Growing annually at 30-35 per cent, it can achieve five-fold growth and contribute 2.5 per cent of India’s GDP from exports. It will provide indirect employment to 8 million people by 2012, the study said.
Further, it observed that some of key problems were high attrition rates, physical and social ‘eco-system’ infrastructure development — especially in Tier 1 and 11 cities, tax issues, competition from other emerging countries such as Malaysia, Phillipines, Sri Lanka etc. Mr Mittal said, “We have educated people but need is for people with specialised skills and knowledge.”
Over 25 per cent of revenues are currently derived from industry-specific services. Also the market opportunity for these is about 60-65 per cent as compared to horizontal BPO services, the study showed.
The study, which found domestic businesses such as banking, retail, insurance, media, telecom and government provides additional $15-20 billion opportunity for the sector, gives eight action themes for BPO industry to realise its potential.
On slow down in the US economy he said at the moment there is no such evidence. But if the whole world gets into a recession we also be affected with others, he added.
