India and Business Process Outsourcing
The estimates for the world-wide Business
Process Outsourcing market vary widely between $142 and
300 billion by the year 2008. The CAGR between 1999 and 2008
is expected to be between 17 to 20%. According to a study
conducted by Nasscom and McKinsey, the BPO business in India
is expected to reach $20 to 24 billion by 2008 (up from $1.45
billion in 2001). This would include Customer Interaction
Services, Back Office Operations (e.g., Accounting, HR, etc.),
Transcription/Translation, Content Development and Other Areas
(including Remote Education). In the last two years, this
segment has shown 70% growth each year. This is similar to
the success shown by India and Indian companies in developing
the software exports market (companies world over outsourcing
their software needs to India). This segment has grown from
$489 million in 1994 to more than $7.5 billion in 2001.
As per Nasscom estimates, India is the world's biggest and
most popular destination for BPO and this is expected to grow
further in the coming years. In addition, the cost advantage
arising out of labor arbitrage, India with its English speaking
workforce offers its global customers a potential to increase
their quality of delivery and service.
|
|
| 
| 
| 
| 
