Monday, March 16, 2009

Outbound Call Center - The Perfect Solution for Your Business Outsourcing

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Gartner report: Indian BPO industry’s revenue to increase two-fold by 2010-end

According to a recent report by the information technology research and advisory firm Gartner, the economic downturn and protectionist measures of western countries notwithstanding, the market share of the business process outsourcing (BPO) industry will likely increase two-fold over the next couple of years.

The report said that Indian vendors in the BPO sector would experience growth, owing to factors like dependable service delivery, sustained acquisitions of Europe and North America-based shared service centers, as well as revenue growth from continental Europe by way of partnerships.

The 2008 revenue figures are expected to double by 2010 - last year, the foremost 20 India-centric BPO service providers managed $4 billion revenue, which was 5 percent of the $80-billion revenue figures of the leading 150 BPO companies of the world. As per Gartner study, the market share of India's cost-effective BPO industry would rise to 10 percent by the end of 2010. Along with having the cost advantage, the Indian BPO industry also attracts corporates because of the fairly simple regulatory norms.

Arup Roy, senior research analyst at Gartner, said: "Indian BPO providers are swiftly evolving to balance exposure to vertical industries, currency and legislation issues. Their strategies include investing in onshore and nearshore delivery, and pioneering new area of analytics services or knowledge process outsourcing (KPO), where Indian BPO players are shining!"

Source: http://www.topnews.in/gartner-report-indian-bpo-industry-s-revenue-increase-twofold-2010end-2154290

India BPO Industry to Grow

"At a time when the US economy is reeling under the financial crisis, the domestic market needs a well-managed approach to overcome global economy havoc. The situation is not so gloomy, although ICICI, the largest private bank in India, has suffered losses"

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India is one the major markets for large overseas companies and lucrative outsourcing destination. According to NASSCOM chief- Som Mittal., IT and ITES services are growing at a faster rate and are poised to generate nearly $ 60 billion in revenue by 2010. With the global financial turmoil, India is expected to benefit from its BPO and IT/ITES offshoring services.

Kamal Nath, Commerce and Industry Minister, while participating in the India-EU Business Summit was quoted as saying that short and medium term fundamentals of the Indian economy were sound, the country could not remain insulated in the long term from such a crisis.

The Indian BPO industry is poised to grow nearly five-fold to $ 50 billion by 2012, a study by India’s National Association of Software and Services Companies (Nasscom) and consulting organization Everest Group said. The Indian BPO industry employs about 700,000 people across 25 countries and accounts for about 40 % of the total global BPO offshore market. The industry aims to provide direct employment to over 2 million people in next five years in India alone.


However, according to IMF sources, India holds a good share in the global offshore IT and ITES (IT-enabled services) market, of which around 60 % comes from IT and 40 % from ITES. They, together contributes to about 5% of India’s GDP. The industry is poised to fare better in revenue, if industry insiders are to be believed. India’s Union Budget 2008-09 focuses on improving infrastructure and encouraging all sources of investment, in order to achieve growth in the Eleventh Five-Year Plan (2007-2012).

“Taking the ongoing economical crisis in US into account, the scenario is painful for a shorter term but it’s an opportunity for the country like India as more companies may outsource business in an effort to cut operational cost,” said Pavan Vaish, CEO of IBM-Daksh Global Services. “A lot of will come out of it in off-shoring business in future,” added Vaish.

Praveen Senger, head (software and services industry vertical research) of IDC India, talked about the future of the BPO Industry. He said that with a CAGR of 43% as compared to 25% of IT outsourcing, the BPO outsourcing shall surpass it in 2012. K. V. Subramaniam CFO of Oracle Financial Services said that outsourcing is not an option but a necessity for any business. So despite the small hiccups, like the current financial crisis, outsourcing industry will only grow stronger.

India has held top position for three consecutive years since 2005 as one of the most attractive markets for retailers worldwide in the annual A.T. Kearney Global Retail Development Index (GRDI). If the market analysis, irrespective of current US economy, goes true then the retail sector is expected to grow from $330 billion to nearly $450 billion by 2010 and $630 billion by 2015.

“Success and failures are the great teachers. Having a good product or service is not necessary, the core value lies in innovation”, feels Navyug Mohnot, CEO and founder, QAI, India. “Customer-centric and long-term strategy, as well as innovation and differentiation is needed in order to retain market, he said.

Source: http://www.brightemps.com/news/3/