Tuesday, April 21

India-centric cos corner 5% of BPO cream revenues

INDIA-centric business process outsourcing (BPO) players have given a competition to their western counterparts by cornering 5% share in the total revenue generated by the top-150 service providers in 2008, according to a study by Gartner.
Gartner expects the growth momentum to continue and the share of Indian vendors to nearly double by 2010. In 2002, there were few Indiacentric vendors in the top-150 worldwide providers but by the end of 2008, the top-20 Indiacentric BPO providers accounted for $4 billion in revenue, representing 5% of the $80-billion revenue of the top-150 BPO vendors.
“Indian BPO providers are swiftly evolving to balance exposure to vertical industries, currency and legislation issues,” said Mr Arup Roy, senior research analyst at Gartner. Their strategies include investing in onshore and nearshore delivery, and pioneering in analytics or KPO.
Indian BPO providers have met with success servicing English-speaking requirements from North America and the UK. North America has been the most successful sales location for Indian BPO providers, where the top-20 India-centric BPO providers generate about $2.2 billion in revenue. Western Europe showed strong growth, mostly in the UK, and accounted for $1.4 billion in revenue for the top-20 Indian BPO providers in 2008. The verticals where Indian BPO providers had more success are telecom, manufacturing, insurance and banking.
Indian BPO company Genpact is ranked number one among the top five India-Centric BPO providers with worldwide BPO revenue of $833 million for 2008 followed by Aditya Birla Minacs with $392 million.
Although there are still no Indian vendors in the top-20 global BPO players, half of the top-20 India-based BPO providers now operate local US and European sales and delivery centres.

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