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India's top ITeS and BPO companies 2008: D&B

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CIOL Bureau
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NEW DELHI, INDIA: Dun & Bradstreet released the fourth edition of its publication, “India’s Top ITeS and BPO Companies 2008”.

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The study highlights the key achievements of the sector and its major growth drivers. It also covers the dynamics of the ITeS and BPO industry in India and its future direction.

Speaking at the launch, Dr. Manoj Vaish, President & CEO, India, Dun & Bradstreet said: “While the ITeS-BPO industry is bound to be impacted by the financial crisis, firms have taken measures to mitigate some of that risk. The industry has started providing services to a wider set of verticals, thus reducing their exposure to any one vertical. For instance, the BFSI sector’s share of the overall pie of services offered by the surveyed ITeS-BPO companies dropped to 28 percent in FY08 from 31 percent in FY07. This trend is set to continue.”

“We see a similar trend for conventional BPO services as well. While conventional BPO services continue to form a majority of the total services offered by the surveyed companies, this year’s study has seen conventional BPO services drop by almost 10 percent from last year. On the other hand, service lines such as KPO, LPO, EPO and eLearning have increased its share considerably. Margins are substantially higher in these services and with companies keen to diversify, revenues from these services are bound to increase,” he added.

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D&B’s “India’s Top ITeS and BPO Companies 2008” was released by Chief Guest, Raman Roy, Chairman & Managing Director, Quatrro BPO Solutions. Raju Bhatnagar, Vice President, BPO and Government Relations, NASSCOM, was the Guest of Honour. Leading names from the ITeS and BPO industry participated in a panel discussion on “Challenges posed by the financial crisis: Revitalization strategies for the ITeS-BPO industry”, that followed thereafter.

Dun & Bradstreet’s ‘India’s Top ITeS and BPO Companies 2008’, highlights the key achievements of the sector and its major growth drivers. It showcases the performances of leading ITeS and BPO companies in India and their future growth plans, thus highlighting the outlook for the industry. The 2008 edition of ‘India’s Top ITeS and BPO Companies’ profiles 228 ITeS-BPO organisations, including 20 captive outsourcing organisations.

Key Insights

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* The cumulative employee base of the profiled companies stood at 442,349, which is 63 percent of the total Indian ITeS and BPO employee base of 700,000 (involved in BPO exports) as per the NASSCOM estimate. The profiled companies registered a y-o-y growth of about 23 percent in terms of total employee base.

* Revenue per employee of the respondent companies stood at approximately Rs 600,000 per annum.

* The highest proportion of services offered was to the BFSI vertical. However, the BFSI sector’s share of the overall pie of services offered by the surveyed ITeS-BPO companies dropped to 28 percent in FY08 from 31 percent in FY07. On the other hand, verticals like aerospace, government & defence and services and logistics increased their shares.

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* Chennai, the second most preferred location last year, emerged as the most preferred location for delivery centres as per this year’s findings. This was followed by Bengaluru. Mumbai, which was the most preferred location last year, moved to third position.

* This year’s study also shows that Tier II cities are making their presence felt in the ITeS-BPO industry. Pune and Gurgaon were placed at fourth and fifth place, respectively, as compared to sixth and seventh last year.

* Over the next two years, a high proportion of companies (45.7 percent) expect revenues for the ITeS-BPO sector to grow by 20-35 percent annually.

* Research & analysis, HR services and translation services are expected to see high growth over the next two years, while BFSI, healthcare and telecom are the most promising verticals.

* North America and Europe, key markets for ITeS-BPO companies, are experiencing an economic slowdown and that is bound to have some impact on the ITeS and BPO industry as a whole. On the positive side though, outsourcing and offshoring are more likely to become an even more important part of a company’s overall strategy as they focus on cost rationalisation, thus paving a path for long term growth for the ITeS and BPO industry.