Outsourcing business is all time high in India today

Nasscom (National Association of Software and Services) has ranked Genpact, WNS and Wipro BPO as the top three third party ITES-BPO companies India in its report published recently.

Nasscom is the premier trade body for IT and “voice” of the industry in India. It issues many reports about happenings as well as provide vital information for the industry. It has released the rankings for the top 15 third party ITES companies in India. These rankings are based on revenues earned by the companies in a financial year 2005-2006.

According to Nasscom report, ITES, BPO segment grew 37 percent. This segment alone earned $6.3 billion revenue for the IT industry, which totally generated $23.6 billion for the financial year.

Kiran Karnik, presided of Nasscom said “In 2005-06, the industry size and growth exceeded our forecasts, reflecting strong demand. The entire software and services industry is expected to record revenues of $36-38 billion in FY07; we expect the ITES-BPO segment to continue its growth momentum and expect exports to cross $8 billion during FY07. The growth in the sector is being driven by steady increase in scale and depth of existing service lines; the addition of newer vertical-specific and emerging niche business services; continued expansion of service portfolios and higher value processes."

"In addition, the BPO industry has significant headroom to grow, with the outsourcing potential being 12 times current revenues. The industry is likely to continue to witness an increase in M&A activity which could lead to a significant consolidation in the BPO industry, in the process creating world scale players," he added.

The major focus of industry will be on how to make India as the prominent hub for global outsourcing and make Indian companies more competent in rising competitive environment.

Following three major services are provided by ITES companies in India.
. Financing
. Human Resource Administration
. Customer services

These three services alone are contributing nearly 90% to revenue for the industry. This growth is expected to continue without any significant change in current fiscal year 2006-2007, industry sources said.

Two major reasons for this growth are
. Recruitment by the leading ITES companies. Employment has risen by 32% approx.
. Besides overseas, domestic market has also witnessed significant growth with estimated local outsource value of $860 million in FY 2005-06

Indian IT industry is looking for huge potentiality in other under-developed markets such as Pharma. This sector is believed to be having the worldwide market of $17 billion in 2004 and expected to exceed $49 billion by 2011, growing at CAGR of 16.3 percent.

Another market that could be interesting for Indian ITES industry would be legal services market. This is fast upcoming segment believed to grow to $6 billion by 2010

Nasscom in the year 2001-2002 initiated the exercise of introducing the Top 15 players -- (third party call centre and BPO players) within the ITES sector. This was based on the information collected from the survey -- received from Nasscom member companies and further revalidated with the STPI (Software Technology Parks of India)

However, Nasscom has revalidated its ranking pattern after consulting with industry experts. It now, validates ranking based on US GAAP (Generally Accepted Accounting Principles in the United States) analysis. The present year ranking submitted is also based on GAAP

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This release was published on openPR.