The BPO industry has not just changed the lives of over 5.5 million Indians. It has put India on the global business map.
Today this sunrise industry is worth USD 8.4 billion, and its potential is immense as it currently caters to about 10% of the world’s USD 300 billion outsourcing market. This is just its direct impact.
If one looks at the multiplied effect on related industries like catering, training and recruitment, transport vendors and security agencies, the numbers are mind-boggling. Every rupee spent by the ITES sector translates into a total output of Rs 2. Every direct job translates into four indirect jobs. And to think of it, it all began just 10 years ago.
The speed at which the ITeS-BPO sector is maturing in India is really astonishing. The industry, now hardly a decade old, has seen many waves of consolidation and cross-border mergers. The sector has also seen within its short life increasing focus on particular domains and moving up the value chain in terms of providing high-end outsourcing services. Unlike its older sibling, the software services sector, the BPO sector didn’t get too much time to grow into a mature industry.
Of course, maturity has come with solid growth. According to Nasscom, the ITeS-BPO industry has grown to $8.4 bn in fiscal 2007 from $6.3 bn in the last year, clocking a healthy 33% growth. The domestic sector also contributed a reasonable 14% to the overall sector revenues, which now directly employs over five lakh people. Given the size of the global BPO market at around $150 bn, the scope of growth for the sector remains buoyant, notwithstanding country level competition from other third and second world countries.
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