Legal Process Outsourcing (LPO) is a growing business segment and is expected to generate an income of $640 million by the year 2011. The industry is also expected to be the fastest growing outsourcing business, according to a report released by the research agency.
The findings based on ValueNotes maintains that India is expected to have a major share in this forecasted revenue from LPO, which will also open huge employment opportunities in India.
"LPOs are seen as a more stable career option than opportunities in the mainstream IT and ITeS sector.
Unlike other segments in outsourcing, the LPO segment has seen a robust growth even during recessionary times, thus providing a stable career option," said Lokendra Tomar, Chief Operating Officer, Asia-Pacific, Integreon, a LPO firm.
The LPO industry will be generating employment opportunities for all the lawyersincluding lawyers, graduates, freshers and MBAs.
Agencies
Showing posts with label LPO. Show all posts
Showing posts with label LPO. Show all posts
Saturday, June 13, 2009
Sunday, February 8, 2009
Is LPOs set to ramp up headcount in India?
The global slowdown is keeping the legal process outsourcing (LPO) sector in India extra busy these days. With the sudden surge in business in the LPO space in the last one year, firms such as Pangea3, UnitedLex and Legal Circle are looking at ramping up headcount in the entry and mid-management levels over the next few months.
The turmoil in the financial services sector globally is driving more legal outsourcing to India both in the corporate and litigation space. Gurgaon-based UnitedLex’s vice-president HR, Rakhi Sharma, said, “We plan to hire 700 professionals in the next few months to keep pace with the work coming from the US and the UK.”
The firm has seen a significant jump in the number of outsourced projects over the last few months both in the corporate and litigation space. Bankruptcy filings in the US have gone up in the last couple of months raising demand for lawyers in India.
“Legal work related to bankruptcies in the global market has increased ,” said Pangea 3 Vice President Legal Services Antony Alex, adding that the law firm is set to recruit around 500 lawyers by the end of 2009. This includes campus placements across several law schools in the country.
Legal Circle, the LPO subsidiary of Delhi-based law firm Fox Mandal Little, too, is gearing up to ramp up headcount to take advantage of the booming time. “The demand for LPOs is on the rise and we have seen increased number of queries from the US to do litigation support from India,” said Fox Mandal Little managing partner Som Mandal.
According to research firm ValueNotes, the entire legal outsourcing industry in India reported revenues of $225 million in 2007, and is expected to generate revenues of around $640 million by the end of 2010. The sector reported a rise of over 200 per cent in revenues in the last 12 months.
Times of India
The turmoil in the financial services sector globally is driving more legal outsourcing to India both in the corporate and litigation space. Gurgaon-based UnitedLex’s vice-president HR, Rakhi Sharma, said, “We plan to hire 700 professionals in the next few months to keep pace with the work coming from the US and the UK.”
The firm has seen a significant jump in the number of outsourced projects over the last few months both in the corporate and litigation space. Bankruptcy filings in the US have gone up in the last couple of months raising demand for lawyers in India.
“Legal work related to bankruptcies in the global market has increased ,” said Pangea 3 Vice President Legal Services Antony Alex, adding that the law firm is set to recruit around 500 lawyers by the end of 2009. This includes campus placements across several law schools in the country.
Legal Circle, the LPO subsidiary of Delhi-based law firm Fox Mandal Little, too, is gearing up to ramp up headcount to take advantage of the booming time. “The demand for LPOs is on the rise and we have seen increased number of queries from the US to do litigation support from India,” said Fox Mandal Little managing partner Som Mandal.
According to research firm ValueNotes, the entire legal outsourcing industry in India reported revenues of $225 million in 2007, and is expected to generate revenues of around $640 million by the end of 2010. The sector reported a rise of over 200 per cent in revenues in the last 12 months.
Times of India
Thursday, December 25, 2008
MphasiS asks 1,300-1,500 employees to relocate or quit
IT services firm MphasiS has asked all 1,300-1,500 employees at its Noida office to either move to a low-cost location or quit.
Most of the employees have quit or are in the process of quitting the firm. Only a few have decided to shift to another centre, informed four former employees who quit recently.
MphasiS, majority-owned by EDS that was acquired by HP this year, offers outsourcing services in financial services, healthcare, communications, transportation, consumer & retail industries and has over 28,000 people on its rolls. It set up the Noida centre in 2005 for BPO operations and has over 1,000 BPO employees, besides some IT employees.
The four former MphasiS employees ET spoke to said the company had told the BPO employees about three months ago to decide between quitting or relocating to other MphasiS centres such as Indore and Vadodara. All employees were given time till December-end to decide and were not given any reason behind the move.
A company spokeswoman said that MphasiS continues to work out of the Noida centre. “We continue to shape our operations as per our client needs, and have recently set up a new centre in Vadodara.
MphasiS is known for its sensitive HR policies and the interests of its employees are a priority,” she said. The spokeswoman did not comment on the decision to relocate people.
Besides giving the option to relocate, MphasiS had invited rival firms such as HCL, ExlService Holdings and Tech Mahindra to recruit from among its employees.
One of the four ex-employees, who bagged a job with one of these firms, said most BPO employees at the Noida centre had managed to find another job.
However, those in the IT services business were not so lucky. One former IT employee at Noida said the company informed the team about a month ago that they need to find another job. “They also said that if we quit early, we will get our retention bonus, which was due later, with our November salary,” he said, adding he is yet to find another job.
Earlier this month, MphasiS opened a 400-seat BPO centre in Vadodara. The company had said it plans to increase the number of seats to 800 seats and employ 2,500 people within a year.
Source: Agencies
Most of the employees have quit or are in the process of quitting the firm. Only a few have decided to shift to another centre, informed four former employees who quit recently.
MphasiS, majority-owned by EDS that was acquired by HP this year, offers outsourcing services in financial services, healthcare, communications, transportation, consumer & retail industries and has over 28,000 people on its rolls. It set up the Noida centre in 2005 for BPO operations and has over 1,000 BPO employees, besides some IT employees.
The four former MphasiS employees ET spoke to said the company had told the BPO employees about three months ago to decide between quitting or relocating to other MphasiS centres such as Indore and Vadodara. All employees were given time till December-end to decide and were not given any reason behind the move.
A company spokeswoman said that MphasiS continues to work out of the Noida centre. “We continue to shape our operations as per our client needs, and have recently set up a new centre in Vadodara.
MphasiS is known for its sensitive HR policies and the interests of its employees are a priority,” she said. The spokeswoman did not comment on the decision to relocate people.
Besides giving the option to relocate, MphasiS had invited rival firms such as HCL, ExlService Holdings and Tech Mahindra to recruit from among its employees.
One of the four ex-employees, who bagged a job with one of these firms, said most BPO employees at the Noida centre had managed to find another job.
However, those in the IT services business were not so lucky. One former IT employee at Noida said the company informed the team about a month ago that they need to find another job. “They also said that if we quit early, we will get our retention bonus, which was due later, with our November salary,” he said, adding he is yet to find another job.
Earlier this month, MphasiS opened a 400-seat BPO centre in Vadodara. The company had said it plans to increase the number of seats to 800 seats and employ 2,500 people within a year.
Source: Agencies
Despite meltdown: No job loses in BPO sector!
Software and BPO industry body Nasscom on Wednesday said the business process outsourcing sector is not in the danger of losing jobs due to the ongoing economic downturn rather a net hirer in the current fiscal.
In a statement here Nasscom said, "Media reports suggest that the Indian BPO industry will see 2.5 lakh job losses by the first quarter of 2009, in the wake of downturn in the US and other developed economies. Nasscom’s research and interaction with its member companies is not in support of this statement. Our detailed industry performance and forecast for FY09 will be released in the next fortnight. However, on employment the industry will continue to be a net hirer in FY09 as a direct corollary of industry growth and fears of large scale job losses at an industry level are unfounded."
The industry body's comment comes in the wake BPO Industry Association President Samir Chopra stating that "severe job loss is expected because of recession. We are going to request for a fiscal package from the Government but if that doesn't happen, then there be huge amount of losses in terms of manpower. I think a quarter of a million jobs will go."
The $11-billion BPO sector employs about seven lakh people.
Source: Agencies
In a statement here Nasscom said, "Media reports suggest that the Indian BPO industry will see 2.5 lakh job losses by the first quarter of 2009, in the wake of downturn in the US and other developed economies. Nasscom’s research and interaction with its member companies is not in support of this statement. Our detailed industry performance and forecast for FY09 will be released in the next fortnight. However, on employment the industry will continue to be a net hirer in FY09 as a direct corollary of industry growth and fears of large scale job losses at an industry level are unfounded."
The industry body's comment comes in the wake BPO Industry Association President Samir Chopra stating that "severe job loss is expected because of recession. We are going to request for a fiscal package from the Government but if that doesn't happen, then there be huge amount of losses in terms of manpower. I think a quarter of a million jobs will go."
The $11-billion BPO sector employs about seven lakh people.
Source: Agencies
Wednesday, November 19, 2008
Zenith forays into BPO space; Goes ahead with expansion
Despite the global recession and the massive layoffs, Zenith software, a leading software company and part of the $120 million Zenith Group, having recently forayed into the KPO space is going ahead with its expansion plans. The Bangalore-based company is expanding its office into a new campus that can house that can accommodate 500-600 per shift.
In an interview with Manu Sharma of CIOL Bureau, Sampath Kumar, CEO of Zenith Software talks about the new business foray and its recruitment drive in India. Excerpts.
CIOL: What has been the impact of recession on Zenith Software?
Sampath Kumar: The US recession has not affected us so far. The only problem is that the US companies want to push the dates. No one wants to decide immediately but business has not affected us in any way. But they are keen on outsourcing the work to India. It is a ‘wait n watch’ situation to gauge its impact in 2009.
CIOL: What has been your recent expansion plans?
SK: Since we are foraying into the information technology enabled services (ITES) in a big way, we are expanding our office by moving into a new campus of 25,000 sqft of built-in space located in Koramangala. The building will comprise of four floors and can accommodate 400-500 employees per shift and we can be further expanded to accommodate 1,500-2000 if necessary.
CIOL: What is Recruitment Process Outsourcing (RPO), why has Zenith forayed into this space?
SK: Zenith has signed up with NovusSTS (pioneers in the newly defined recruitment process optimization business) for providing RPO services. RPO is a form of Business Process Outsourcing (BPO) where an employer outsources or transfers all or part of its recruitment activities to an external service provider.
CIOL: What are the work involved in RPO and its benefits?
SK: RPO involves the outsourcing of all or just part of recruitment functions and process. RPO providers manage the entire recruiting/hiring process from job profiling through the on boarding of the new hire, including staff, technology, method and reporting. A properly managed RPO will improve a company's time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance. The RPO service provider is the source for in-scope recruitment activity.
CIOL: What is the future of RPO industry in India?
SK: Since only about 20-25 companies are into this pace in India, we see a bright future. Our policy is not to target the big players but instead found a partner for the delivery.
CIOL: What is Zenith role in the LPO industry?
SK: Zenith has been in this sector for the last three months and has entered into a joint venture with a law firm based in US. We have started with the training process and have about 10 employees, who are corporate lawyers and LPO professionals involved in document reviews, immigration services and contract drafting.
CIOL: Explain the travel software developed by Zenith?
SK: The company has developed a travel software similar to IBS. It is a total integrated software for the tour operators operating across the country. This is the first product by Zenith and was earlier exhibited in Mumbai in a travel expo called – Travel Eye. The product is likely to hit the market by 2009. In respect to the pricing of the software, we have planned to price it between Rs 5-10 lakh, depending on the module, we will customize it as per your requirements. The product was developed over the last two years and about 10 software engineers were involved in the product.
CIOL: What are the other software developed by Zenith?
SK: Following our success with the travel software, we are also developed a software for a retail company in Australia. Similarly also developed a automobile product for the Norwegian market expected to be rolled out in 2009.
For the insurance sector, we have signed up with a UK-based company for the development and support of large US insurance firms. This is for the life insurance products and we will handle the customisation, maintenance and the enhancement of the product. Similarly, we have also signed up with a Swiss company for non-life insurance. We have completed the prototype of the product using Java and the product will be out by end of 2009.
CIOL: What has been the attrition in your organization?
SK: The attrition in our company is only 8-10 percent much lesser than the industry standards of 25-30 percent in BPO industry. Presently we have a 50:50 mix of developers and ITES (BPO) employees. I feel ITES will outdo IT and already we have employed 35 members in the last one-month and will hire another 25-30 in the next few months.
CIOL: When has Zenith forayed into the Scandinavian market?
SK: Zenith has forayed into the Scandinavian market through a partnership with Norway-based Software Offshoring Consulting (SOC). SOC is part of the Norwegian Data-Invest Group that has been providing progressive and market oriented solutions and services. This partnership will expand Zenith Software Ltd’s (ZSL) footprint in the European market.
ZSL and SOC have been working together on joint product development for the automotive industry. This product will also be maintained by ZSL for all the clients across the globe. This relationship has now matured into partnership wherein ZSL-SOC would jointly market and provide offshore development services. This is an exciting phase in ZSL’s growth plans. With SOC’s strengths we will be able grow in the Nordic.
CIOL: How do you see the future of Zenith Software shaping up?
SK: With our foray into BPO/KPO space and from the present turnover of $6 million, we had anticipated a jump of $10-12 million by 2009. But do the present industry scenario we may now expect only a 50 percent growth from the initial target of 75 percent. The only problem we are facing is that things are not happening and projects are getting delayed. The trend is not only in the US market but also in UK and European markets as well. ”US is creating a ripple affect on other countries.”
By 2012, Zenith expects the company to have 2000 plus employees with major revenues from UK, European countries and a 10 percent decline from the US markets. The company will strongly look at analytics, insurance, claim processing, medical billing and market research in the future. We are in talks with insurance and healthcare industries.
CIOL: Any IPO plans in the pipeline?
SK: We have seen a good growth so far which has been totally debts free. We see inorganic growth growing faster than organic growth. We plan to roll out an Initial Public Offering (IPO) when the company reaches a turnover of about $50 million and with over 3000 employees.
CIOL: What are your plans for expansion into Tier II cities?
SK: The company is also targeting at Tier II cities like Mysore, Mangalore. But we find a number of problems like poor resource stain, poor infrastructure is another major problem. In fact, we initially looked at a SEZ in Salem, but later withdrew the idea.
In an interview with Manu Sharma of CIOL Bureau, Sampath Kumar, CEO of Zenith Software talks about the new business foray and its recruitment drive in India. Excerpts.
CIOL: What has been the impact of recession on Zenith Software?
Sampath Kumar: The US recession has not affected us so far. The only problem is that the US companies want to push the dates. No one wants to decide immediately but business has not affected us in any way. But they are keen on outsourcing the work to India. It is a ‘wait n watch’ situation to gauge its impact in 2009.
CIOL: What has been your recent expansion plans?
SK: Since we are foraying into the information technology enabled services (ITES) in a big way, we are expanding our office by moving into a new campus of 25,000 sqft of built-in space located in Koramangala. The building will comprise of four floors and can accommodate 400-500 employees per shift and we can be further expanded to accommodate 1,500-2000 if necessary.
CIOL: What is Recruitment Process Outsourcing (RPO), why has Zenith forayed into this space?
SK: Zenith has signed up with NovusSTS (pioneers in the newly defined recruitment process optimization business) for providing RPO services. RPO is a form of Business Process Outsourcing (BPO) where an employer outsources or transfers all or part of its recruitment activities to an external service provider.
CIOL: What are the work involved in RPO and its benefits?
SK: RPO involves the outsourcing of all or just part of recruitment functions and process. RPO providers manage the entire recruiting/hiring process from job profiling through the on boarding of the new hire, including staff, technology, method and reporting. A properly managed RPO will improve a company's time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance. The RPO service provider is the source for in-scope recruitment activity.
CIOL: What is the future of RPO industry in India?
SK: Since only about 20-25 companies are into this pace in India, we see a bright future. Our policy is not to target the big players but instead found a partner for the delivery.
CIOL: What is Zenith role in the LPO industry?
SK: Zenith has been in this sector for the last three months and has entered into a joint venture with a law firm based in US. We have started with the training process and have about 10 employees, who are corporate lawyers and LPO professionals involved in document reviews, immigration services and contract drafting.
CIOL: Explain the travel software developed by Zenith?
SK: The company has developed a travel software similar to IBS. It is a total integrated software for the tour operators operating across the country. This is the first product by Zenith and was earlier exhibited in Mumbai in a travel expo called – Travel Eye. The product is likely to hit the market by 2009. In respect to the pricing of the software, we have planned to price it between Rs 5-10 lakh, depending on the module, we will customize it as per your requirements. The product was developed over the last two years and about 10 software engineers were involved in the product.
CIOL: What are the other software developed by Zenith?
SK: Following our success with the travel software, we are also developed a software for a retail company in Australia. Similarly also developed a automobile product for the Norwegian market expected to be rolled out in 2009.
For the insurance sector, we have signed up with a UK-based company for the development and support of large US insurance firms. This is for the life insurance products and we will handle the customisation, maintenance and the enhancement of the product. Similarly, we have also signed up with a Swiss company for non-life insurance. We have completed the prototype of the product using Java and the product will be out by end of 2009.
CIOL: What has been the attrition in your organization?
SK: The attrition in our company is only 8-10 percent much lesser than the industry standards of 25-30 percent in BPO industry. Presently we have a 50:50 mix of developers and ITES (BPO) employees. I feel ITES will outdo IT and already we have employed 35 members in the last one-month and will hire another 25-30 in the next few months.
CIOL: When has Zenith forayed into the Scandinavian market?
SK: Zenith has forayed into the Scandinavian market through a partnership with Norway-based Software Offshoring Consulting (SOC). SOC is part of the Norwegian Data-Invest Group that has been providing progressive and market oriented solutions and services. This partnership will expand Zenith Software Ltd’s (ZSL) footprint in the European market.
ZSL and SOC have been working together on joint product development for the automotive industry. This product will also be maintained by ZSL for all the clients across the globe. This relationship has now matured into partnership wherein ZSL-SOC would jointly market and provide offshore development services. This is an exciting phase in ZSL’s growth plans. With SOC’s strengths we will be able grow in the Nordic.
CIOL: How do you see the future of Zenith Software shaping up?
SK: With our foray into BPO/KPO space and from the present turnover of $6 million, we had anticipated a jump of $10-12 million by 2009. But do the present industry scenario we may now expect only a 50 percent growth from the initial target of 75 percent. The only problem we are facing is that things are not happening and projects are getting delayed. The trend is not only in the US market but also in UK and European markets as well. ”US is creating a ripple affect on other countries.”
By 2012, Zenith expects the company to have 2000 plus employees with major revenues from UK, European countries and a 10 percent decline from the US markets. The company will strongly look at analytics, insurance, claim processing, medical billing and market research in the future. We are in talks with insurance and healthcare industries.
CIOL: Any IPO plans in the pipeline?
SK: We have seen a good growth so far which has been totally debts free. We see inorganic growth growing faster than organic growth. We plan to roll out an Initial Public Offering (IPO) when the company reaches a turnover of about $50 million and with over 3000 employees.
CIOL: What are your plans for expansion into Tier II cities?
SK: The company is also targeting at Tier II cities like Mysore, Mangalore. But we find a number of problems like poor resource stain, poor infrastructure is another major problem. In fact, we initially looked at a SEZ in Salem, but later withdrew the idea.
Thursday, October 16, 2008
Indian BPO industry to reach $50 bn by 2012?
A joint study conducted by National Association of Software and Service Companies (Nasscom) and the Everest Group, a global strategy consulting firm reveals that the $11 billion Indian BPO industry in its current momentum is poised to touch $30 billion by 2012. However, with accelerated growth to capture the addressable spend in the international and domestic market could take the industry to $50 billion by 2012. Som Mittal, president of Nasscom spoke to Manu Sharma of CIOL Bureau on how the Indian BPO industry is shaping up.
CIOL: What was this study all about?
Som Mittal: The Nasscon-Everest India BPO study began in August 2007 to provide a comprehensive fact-based view of capabilities of sector, opportunities and growth imperatives for Indian BPO industry and its stakeholders. We found that the Indian BPO sector has evolved tremendously since its inception, not only in its size but also in terms of maturity - service lines, service delivery capability and footprint.
CIOL: Does India's BPO have the potential to touch the $50 billion mark?
SM: I strongly feel that the aspired target for the BPO industry is very much achievable however stakeholders will need to act on a number of initiatives to accelerate growth individually as well as collectively.
CIOL: What are the steps needed by the industry/government to achieve the $50 billion mark?
SM: The study highlights an eight point action themes for the Indian BPO industry to realize its potential and accelerate its growth. We will share the study with the industry and also the various governments. Some of the themes include: Protect India's cost advantage to ensure buyer interest; Create BPO hubs to drive this industry deeper within India; Increase employment and access untapped talent pools by creating greater linkages between the current education system and the needs of the BPO industry and Facilitating the development of BPO-specific education models.
CIOL: How will the BPO growth impacted the Indian economy?
SM: The five-fold growth in the Indian BPO market will bring huge payoffs to India's economy and employment. It contributes about 2.5 percent to India's GDP from export earnings and provides employment to over 2 million people that is expected to grow by 2-3 times. Besides growth in tier 2 and tier 3 cities and towns will see a six-fold growth in the number of delivery centers.
CIOL: In terms of employment where does it stand today?
SM: This US$ 11 billion industry today employs more that 700,000 people across 25 countries and accounts for approximately 40 percent of the global BPO offshore market thereby creating huge job opportunities and impacting the economy.
CIOL: Has the industry been able to penetrate into smaller towns across India?
SM: The industry has today expanded to tier 2 and tier 3 cities and towns and delivers services from over 30 cities with in India. In addition, the industry has acquiring global services delivery footprint with operations in over 75 cities across 25 countries.
CIOL: How has the BPO industry growth over the years?
SM: India has emerged as the destination of choice for offshore delivery of business processes. Today the BPO industry has touched $11 billion and growing annually at 35 percent over the past last five years. Earlier the IT industry involved only the engineers and technical people but now the fresh graduates are entering this industry.
CIOL: What are the areas of potential growth in this industry?
SM: About 30 percent of the opportunity will be in the under-penetrated industries such as telecom, retail, media and energy and so it is needless to say that the traditionally large areas such as banking, insurance, financial services and manufacturing will offer large opportunities as well. Today North America continues to be the largest BPO market for India. However, untapped opportunities in UK, Continental Europe and Asia-Pacific will offer larger outsourced opportunities as well.
CIOL: What is the Future of BPO industry in India?
SM: Our figures indicate that the global BPO industry is estimated at about $250-$280 billion. But presently only less than 4-5 percent of the industry is actually tapped. But we see a huge potential in the future in terms of growth and also employment in India.
CIOL: What was this study all about?
Som Mittal: The Nasscon-Everest India BPO study began in August 2007 to provide a comprehensive fact-based view of capabilities of sector, opportunities and growth imperatives for Indian BPO industry and its stakeholders. We found that the Indian BPO sector has evolved tremendously since its inception, not only in its size but also in terms of maturity - service lines, service delivery capability and footprint.
CIOL: Does India's BPO have the potential to touch the $50 billion mark?
SM: I strongly feel that the aspired target for the BPO industry is very much achievable however stakeholders will need to act on a number of initiatives to accelerate growth individually as well as collectively.
CIOL: What are the steps needed by the industry/government to achieve the $50 billion mark?
SM: The study highlights an eight point action themes for the Indian BPO industry to realize its potential and accelerate its growth. We will share the study with the industry and also the various governments. Some of the themes include: Protect India's cost advantage to ensure buyer interest; Create BPO hubs to drive this industry deeper within India; Increase employment and access untapped talent pools by creating greater linkages between the current education system and the needs of the BPO industry and Facilitating the development of BPO-specific education models.
CIOL: How will the BPO growth impacted the Indian economy?
SM: The five-fold growth in the Indian BPO market will bring huge payoffs to India's economy and employment. It contributes about 2.5 percent to India's GDP from export earnings and provides employment to over 2 million people that is expected to grow by 2-3 times. Besides growth in tier 2 and tier 3 cities and towns will see a six-fold growth in the number of delivery centers.
CIOL: In terms of employment where does it stand today?
SM: This US$ 11 billion industry today employs more that 700,000 people across 25 countries and accounts for approximately 40 percent of the global BPO offshore market thereby creating huge job opportunities and impacting the economy.
CIOL: Has the industry been able to penetrate into smaller towns across India?
SM: The industry has today expanded to tier 2 and tier 3 cities and towns and delivers services from over 30 cities with in India. In addition, the industry has acquiring global services delivery footprint with operations in over 75 cities across 25 countries.
CIOL: How has the BPO industry growth over the years?
SM: India has emerged as the destination of choice for offshore delivery of business processes. Today the BPO industry has touched $11 billion and growing annually at 35 percent over the past last five years. Earlier the IT industry involved only the engineers and technical people but now the fresh graduates are entering this industry.
CIOL: What are the areas of potential growth in this industry?
SM: About 30 percent of the opportunity will be in the under-penetrated industries such as telecom, retail, media and energy and so it is needless to say that the traditionally large areas such as banking, insurance, financial services and manufacturing will offer large opportunities as well. Today North America continues to be the largest BPO market for India. However, untapped opportunities in UK, Continental Europe and Asia-Pacific will offer larger outsourced opportunities as well.
CIOL: What is the Future of BPO industry in India?
SM: Our figures indicate that the global BPO industry is estimated at about $250-$280 billion. But presently only less than 4-5 percent of the industry is actually tapped. But we see a huge potential in the future in terms of growth and also employment in India.
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