The Jig Saw

Monday, August 08, 2005

Domestic BPO in India

Ajit Sankaran, Manager Software and Service Research, IDC India Limited spoke on `Business Process Outsourcing: Opportunities at Home' at the 18th India ICT Industry briefing session.

The domestic BPO market is worth Rs 650 crore [though miniscule has potential to grow] envisaging that banking and telecom services would remain the major drivers.

The main inhibitors for the growth of the market were the low margins and the 'no-real cost advantage', he said.

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  • Speaking on a conference call from the US, Michael F Corbett, conference chair, president and CEO, Michael F Corbett & Associates said, "The world outsourcing market is estimated to be about $5 trillion according to Outsourcing Research Council 2002. Nearly 20 per cent of this is constituted by the IT and ITES market, which is growing at about 15 per cent per annum."

    "Of this, India receives only about 2 per cent of the work, which indicates the huge potential," he said.

    I'm more concerned about how much of the US IT industry is being outsourced to India. It is being predicted that by 2010 most of the design and manufacturing part for the Hardware compnanies are gonna be outsourced to India leaving only research and marketing in US.

    By Anonymous Rohit, at 2:43 AM  

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