The
TOP 15
Genpact,
WNS and Wipro
BPO are the
top three third-party
ITES-BPO companies
in India, according
to a survey
released recently.
The survey,
conducted by
the National
Association
of Software
and Services
Companies (Nasscom),
the premier
trade body of
the IT software
and service
industry in
India, has listed
the rankings
of the top 15
third party
ITES-BPO companies.
The rankings
are based on
revenues for
2005-06 reported
as per the annual
Nasscom survey
on IT industry
performance.
A few companies
(e-funds, Sutherland
Global Services)
did not provide
India revenues
as reported
to STPI (Software
Technology Parks
of India). If
the global revenues
of such firms
had been considered,
they would have
featured in
the Top 5 companies.
In fiscal 2005-06
(April-March),
the Indian ITES-BPO
segment grew
by 37 per cent
contributing
$6.3 billion
to the total
software and
services exports
of $23.6 billion.
Speaking on
the findings
of the survey,
Nasscom president
Kiran Karnik
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
FY06-07;
“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
offshorable
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,"
Karnik said.
The ITES-BPO
industry will
now need to
focus on how
India can emerge
as the benchmark
in global outsourcing
and how companies
in India can
continue to
offer the best
in class benefits
to overseas
clients and
their customers.
Leaders of the
BPO industry,
analysts and
key customers
will deliberate
on this theme
at the upcoming
Nasscom India
ITES-BPO Strategy
Summit in Bangalore
on June 7 and
June 8, 2006.
Steady growth
was observed
across the following
key service
categories
• Finance
and Accounting.
• Customer
Interaction.
• Human
Resource Administration.
These three
segments accounted
for an estimated
89 per cent
of the industry
revenues in
FY 2004-05.
With steady
demand observed
across these
key segments,
it is estimated
that the segment
composition
will not change
significantly
in the current
fiscal (FY 2005-06).
Key highlights
of the Indian
ITES-BPO sector:
• The
ITES-BPO employee
base has grown
to 415,000 in
FY 06 from 316,000
in Fy05.
• The
domestic market
for ITES-BPO
also witnessed
a significant
increase in
demand with
the estimated
value of work
outsourced (by
domestic clients)
growing by over
55% to $860
million in FY
2005-06.
• Companies
are increasingly
focusing on
security, innovation,
operational
excellence and
sustained total
cost competitiveness.
The following
sections highlight
some of the
new areas of
opportunity
(vertical markets
and services)
being addressed
by Indian ITES-BPO
companies:
BFSI is amongst
the most mature
verticals in
terms of offshore
ITES-BPO adoption.
This segment
is estimated
to account for
approximately
35-45 per cent
of offshore
ITES-BPO, and
has the greatest
service line
depth.
Pharmaceuticals
and life sciences
sector is a
relatively new
sector with
rapidly growing
IT-ITES spends
and significantly
under-penetrated
offshore potential.
According to
recent reports,
worldwide technology
spends in the
life sciences
industry, which
totaled $17
billion in 2004,
is likely to
exceed $49 billion
by 2011, growing
at a CAGR of
16.3 per cent.
Legal services
segment is a
relatively newer
segment that
has witnessed
recent interest
and is believed
to hold significant
market potential
to grow to $6
billion by 2010.
Business Process
Management/Platform
BPO: With continually
increasing emphasis
on improving
business process
efficiencies,
there is a growing
trend towards
the use of technology
to automate
and streamline
business functions.
Business process
management combines
expertise in
process management
and implementation
technologies
(such as EAI,
BI, DW and BPMS[1])
to deliver a
solution oriented
towards business
delivery. Leading
players are
developing platform-based
BPO solutions
to offer industry
standard process
methodologies
focused on key/priority
horizontal/vertical
markets (e.g.,
healthcare administration,
F&A BPO
for telecommunications,
financial services
and manufacturing
verticals).
