The Hindu Business Line : ‘BPO sector can see 5-fold growth’

More potential seen: (from left) Mr Gaurav Gupta, Country Head, Everest Group; Mr Som Mittal, President, Nasscom; and Mr Raman Roy, Chairman and Managing Director, Quatrro, at a press conference in Bangalore on Tuesday.

Our Bureau

Bangalore, Jan. 29 The Indian BPO industry, currently pegged at $11 billion, could see a five-fold growth over the next five years if the industry, government and other stakeholders collaborate to address key issues such as education and infrastructure, a report published by Nasscom and Everest Group said.

By 2012, the Indian BPO industry could be valued at $50 billion, generate about two million direct jobs, and add up to 2.5 per cent to India’s GDP, said Mr Gaurav Gupta, Country Head (India), Everest Group, a global strategy consulting firm.

The industry would grow to only about $30 billion on its own momentum, he added, speaking at the launch of the Nasscom-Everest India BPO study.

Action themes

The report, titled ‘Nasscom-Everest India BPO Study — Roadmap 2012 — Capitalising on the Expanding BPO Landscape’, speaks of eight action themes the stakeholders of the Indian BPO industry need to act on, which includes protecting India’s cost advantage, creating BPO hubs, and development of BPO-specific education models.

Mr Raman Roy, Chairman and Managing Director, Quatrro BPO Solutions Pvt Ltd, said the education system needs to be aligned with industry requirements to create specialised professionals capable of handling the more sophisticated work coming to India.

Mr Roy also stressed the need to create social and physical infrastructure in the smaller cities, which are potential expansion areas.

He argued for the extension of tax benefits, saying countries such as Malaysia, the Philippines and Sri Lanka all offer tax breaks.

Mr Som Mittal, President of Nasscom, said the Indian BPO sector has evolved tremendously since its inception, not only in size but also in terms of maturity — service lines, service delivery capability, and footprint.

Indirect jobs

The industry employs more than 7 lakh people across 25 countries and accounts for about 40 per cent of the $26-29 billion global BPO offshore market.

He said the industry would create about eight million indirect jobs by 2012.

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