November, 21, 2011: The modernization effort of the West Asian countries has presented a sea of opportunities for the outsourcing service providers. The $16 billion worth information technology and outsourcing market is now being targeted by the Indian outsourcing companies. A number of Indian outsourcing companies have started to step up their operations in the West Asian countries anticipating the huge government spending on digitization in the years to come.
The growing West Asian market is a blessing for the Indian outsourcing companies which are affected by the debt crisis in the European market and the continuing recession in the US market. An increase in activity is observed in the field of education, oil and gas, telecommunication and banking along with incentives provided by the governments such as special outsourcing zones which forms the areas of interest to various Indian outsourcing companies such as Wipro, Mahindra Satyam etc.
Leading BPO Company, Genpact has started its 80 seater delivery facility in Dubai Outsource Zone. Genpact has now intentions to expand the capacity of the facility to a 500 seater in the next three years. Another major player in the outsourcing industry, Intelenet has announced its entry into the West Asian market with the setting up of a 200 seater delivery center in the Dubai Zone which offers services to firms in the telecom, banking and financial domains. Being the first special zone for the outsourcing industry, the Dubai Outsource Zone offers benefits such as complete ownership and tax exemptions. The location gives an added advantage of serving clients across Middle East and the North African region.
According to Aparup Sengupta, managing director at Aegis, there is a hunger for digitization in the Middle East and North African region after the post revolution as a result of efforts to modernize the region.
A report published by Forrester says that the IT purchases in the Eastern Europe, and MENA is expected to grow by 18.2 per cent towards the end of 2011. Senior Vice president at Wipro says that Saudi Arabia is the largest market with growth contributed by sectors such as education, oil and gas, banking and telecom. Wipro is the strongest player in the West Asian region generating $300, the CAGR of revenue being 71 per cent from the region since 2007.
Another leading player in the region, Mahindra Satyam, witnessed a growth of 40 per cent between quarters and 120 per cent growth between two consecutive years.
Even though the region contributes less to the revenue, it is expected to grow over the time.