The Hindu : Emerging BPO opportunities

Online edition of India's National Newspaper
Thursday, Jul 17, 2003

Business

Business

Emerging BPO opportunities

By Our Special Correspondent

NEW DELHI JULY 16. Total employment in the Business Process Outsourcing (BPO) industry is expected to reach six lakhs by 2007, according to a research done by International Data Corporation (IDC) in association with the Associated Chambers of Commerce and Industry of India (Assocham).

The study titled `Emerging BPO Opportunities for India' reveals that employment in this area will grow at a compounded annual growth rate 32 per cent during 2003-07 from the present 1.5 lakhs. Expanding integration between corporate IT decision-makers and business processes along with the significant cost advantage have led to a growing acceptance of BPO as a means of managing business. In 2002, the BPO industry witnessed an increase in the number of contracts being awarded and a flurry of activity in setting up foot by different global players.

The industry also witnessed wide-scale capital infusions in terms of infrastructure, people and processes and was almost operating at 64 per cent of the total installed capacity, which IDC predicts will improve to 78 per cent by 2007. This is mainly due to market consolidation and maturity.

The demand for BPO services in functional areas such as finance, marketing, sales, human resources and administration, is expected to remain high for the forecast period of 2003-07 as companies worldwide are on a continuous lookout for adopting effective measures to prune costs across function. This would translate into more business opportunity for BPO service providers, says the study.

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