BFSI constitutes 50 p.c. of Indian BPO export

BANGALORE, INDIA: The BFSI sector constitutes 50 per cent of India's total BPO service export, said Chirag Buch, CEO, AXA Business Service Private Ltd, while talking on a panel at NASSCOM BPO Strategy Summit 2010 here today.

In the last four years, the BPO industry grew at a CAGR of 23 per cent, while it expects to grow at a CAGR of 25 to 30 per cent in the coming years, he added.

Experts are of the view that the future augurs well for the BPO industry. Donniel Schulman, GM of F&A and SCM practice at IBM, said that when a study was done on 2000 companies around the globe, it turned out that the best performing companies among that bunch had outsourcing or offshoring presence.

But there is an emerging trend happening in the global banking sector which could trigger off a consolidation drive in the BPO industry. A survey done by NelsonHall in February this year indicated that global banks are reducing their BPO vendor count by 14.7 per cent on average. That means the existing service providers will have to strengthen their service portfolios.

Let us wait and see if there will be a consolidation drive in the industry.