BPO Revenues in India

  1. Do you have any domestic BPO revenue numbers?
    Revenue / Year 2003-04 2004-05 2005-06 2006-07 2007-08
    Domestic BPO 0.3 0.6 0.9 1.1 1.6
    Overall BPO Revenue 3.4 5.2 7.2 9.5 12.5
    Figures in $ billion Source: Nasscom

    Some old numbers Indian Market size estimates of BPO

    • Nasscom has estimated that the Indian ITES industry will gross over $5.7 billion by 2005 (based on a conservative year-on-year growth of 65 percent by Nasscom).
    • Nasscom-McKinsey: In 1999 they estimated by 2008 it will be $17 billion but it has been revised to $21-24 billion by 2008. Indian can capture 25% of global BPO offshore market and 12% of the market for other services such as animation, content development and design services.
    • Gartner: $1 billion (2002), $1.2 billion (2003). $13.8 billion by 2007. Gartner does not incorporate animation, medical or other (legal) transcription services, GIS, market research, data search, research and development, network consultancy and other non-business processes in its estimates on the ITES market size and potential.
    Revenue \ Year 2002 2003 2004 2005 2006 2007 CAGR
    Offshore BPO Revenue 1,322 1,825 3,017 6,439 12,563 24,230 78.91
    Indian BPO Revenue 912 1,205 1,961 3,928 7,412 13,811 69.35
    Total BPO Market 110,167 121,687 131,171 143,090 157,033 173,070 9.45
    CAGR in % 2002-07 Figures in $ million Source: Gartner Dataquest (May 2003)

     

  • How much does BPO revenues add upto in India?According to Nasscom, total IT-BPO clocked (or will clock),
    • 2007-08: $52 billion (growth of 28%). $40.4 b from exports, $11.6 domestic. Of the exports, IT grew by 28% to 23.1 b and BPO exports went up by 30% to $10.9 b
    • 2008-09*: $62-64 billion
    • 2010*: 110 billion
  • What are the global BPO revenue estimates??Global Market size estimates of BPO
    • $712 billion in 2001
    • Gartner/Dataquest: $ 544 billion in 2004
    • Gartner: $173 billion in 2007, of which $24.23 billion would be outsourced to offshore contractors
    • IDC: $300 billion in 2004
    • IDC: $1.2 trillion in 2006
  • Do you have any BPO revenue numbers by category/verticals?
    India’s BPO Market Estimates
    Key Service Line 1999 2001 2002-2003 2003-2004 2005-2006
    HR 5.4 3.5-4.0 0.45 0.75 1.65
    Customer Care 4.1 8.0-8.5 8.3 12 15
    Payment Services 2.9 3.0-3.5 2.3 4.3 6.2
    Content Development 2.6 2.5-3.0 5.1 5.5 6.7
    Administration 1.3 1.5-2.0 3.25 5.4 8.4
    Finance 0.7 2.5-3.0 3.25 5.4 8.4

    All estimates in billions

  • Has the revenue grown for BPO companies in India?
    BPO Growth in India Revenue
    2002-2003 28.4
    2003-2004 36.6
    2004-2005 50.95

    All estimates in $billions

  • How IT services companies doing when compared with pure play BPO companies in India?Top tier IT services vendors such as TCS, Wipro, Infosys and HCL are catching up with their standalone counterparts or pure-play vendors such as Genpact and WNS.The revenue gap between the IT services firms and the pure-play vendors seemed to be narrowing down in the past two to three years. The largest BPO firm Genpact Ltd, which earns about a fifth of its revenues from IT services offerings, crossed the billion-dollar-mark last fiscal, followed by WNS that grossed a little over half a billion.Wipro was the first among the large players to foray into BPO with the acquisition of Spectramind way back in 2002, and its larger rivals TCS and Infosys have managed to catch up.TCS, the latest to do an acquisition, bought the captive unit of Citi last fiscal, which gave it significant scale and helped expand its delivery footprint. TCS clocked $415 million or about 6 per cent of its $6-billion total revenues for the fiscal.The acquisition of Philips captive, besides assuring steady revenues, helped Infosys enhance delivery capabilities in key geographies such as Poland and Thailand.

    The top tier IT services vendors are in the $300-500 million range with TCS at the top followed by Wipro BPO, Infosys BPO and HCL. Source: Business Line, October 5, 2009




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