Indian ITeS industry employed more than 100,000 people in 2001-2002. This industry clocked approximately 70% growth last year is expected to grow similarly in 2002-2003.

Global Market size estimates of BPO

• $712 billion in 2001
• Gartner/Dataquest: $ 544 billion in 2004
• Gartner: $173 billion in 2007, of which $24.23 billion would be outsourced to offshore contractors
• IDC: $300 billion in 2004
• IDC: $1.2 trillion in 2006

A Bloomberg report noted how Atlanta-based Delta Airlines created 1,000 call-center jobs in India in 2003. he Indian operations saved Delta $25m in 2003, enabling the U.S. air carrier to add 1,200 positions for reservations and sales agents at home. But no Delta employees lost their job as a result of outsourcing.

In August 2003, McKinsey & Company estimated that every dollar of U.S. labor costs assigned overseas will generate $1.12-$1.14 in additional value for the American economy by making goods and services cheaper and companies more competitive.

• Domestic BPO
  Market Size: $6 billion by 2012
  Major Players: Infovision, FirstSource, Intelenet
  
  
• Legal Process Outsourcing
  Market Size: $3-5 billion by 2012
  Major Players: Pangea3, UnitedLex
  
  
• Media Outsourcing
  Market Size: $3.5 billion by 2012
  Major Players: Mindworks, NDTV Media, Source 18
  
  
• Media Outsourcing
  Market Size: $10 billion by 2010
  Major Players: Inductis, Evalueserve, Copal Partners
  
  

Some old numbers Indian Market size estimates of BPO

• Nasscom has estimated that the Indian ITES industry will gross over $5.7 billion by 2005 (based on a conservative year-on-year growth of 65 percent by Nasscom).
• Nasscom-McKinsey: In 1999 they estimated by 2008 it will be $17 billion but it has been revised to $21-24 billion by 2008. Indian can capture 25% of global BPO offshore market and 12% of the market for other services such as animation, content development and design services.
• Gartner: $1 billion (2002), $1.2 billion (2003). $13.8 billion by 2007. Gartner does not incorporate animation, medical or other (legal) transcription services, GIS, market research, data search, research and development, network consultancy and other non-business processes in its estimates on the ITES market size and potential.

Hmm...not exactly. IT Services will still be the largest contributor to the exports pie.

As on March 31, 2003, the sector employed 171,000 professionals. It has $1 billion invetsed in it, creating about 100,000 smart cubicles in 7.5 million saq ft of space. It generated revenues of $2.3 billion in 2002-03.

As of Jan 2006, the outsourced publishing business in India is estimated at Rs 1,500 crore.

IT infrastructure is critical for firms globally. Organisations invest huge amount of money to build IT infrastructure that support their business goals and objectives, but many fail to set up even the most basic tools to effectively manage their IT resources.

Help desk management, configuration management, and application packaging and migration services are some of the infrastructure-based activities that are currently being delivered from an offshore location and they may serve as platforms into broader outsourcing deals.

According to a Nasscom report, an estimated that 40-60 per cent of the overall Infrastructure Management Service pie may be efficiently delivered through a global delivery model. This translates to a market potential (for offshore infrastructure management) of approximately $ 55 billion.

Forrester Research, the global business intelligence major, which has estimated the infrastructure outsourcing opportunity at $ 111 billion, has indicated that it can bring almost $1 billion earnings for India, provided Indian outsourcers strengthen their cost, quality and security strengths.

According to Gartner, by 2006, Infrastructure services delivered in a Global Delivery Model from India to US companies will surpass $1 billion (with 80% probability).

See BPO Rankings.

Business Intelligence (BI) is a proven approach for achieving sustainable business process improvement.

You can supply significant business value to your clients by deploying BI in your BPO. Business intelligence is the proven technique for achieving a significant business impact -- from enhancing the top line to discovering new ways to reduce the bottom line; from trend analysis to customer retention; from revenue to expenses; from analytics on recruitment to retention; and constant benefit analysis.

Key benefits of integrating Business Intelligence in BPO:

• Discover profits: The profits from savings in operational costs after implementing BI can generally exceed BI investment itself in a relatively short period.
• Beyond Reporting: BI lets you watch in near real-time the performance across multiple campaigns across multiple regions through a single dashboard. Receive automated alerts as soon as a variance is generated in a process. Get accurate updates and information by integrating mobility kit with BI.
• Track where your data is going. Get alerted in near real-time as soon as security is breached.
• You can prove that you are delivering and possibly exceeding the mutually agreed upon business value by continuously monitoring different SLAs (Service Level Agreements)
• Accurately forecast business conditions to take proactive decisions using powerful predictive analysis tools
• A BI solution can even analyze the recorded voice data and automatically generate reports on performance measures.
• Reduce executive workload. Increase overall organizational output and employee efficiency
• Reduce the risks of the BPO function
• Reduce risks for all parties by enabling continuous monitoring of the outsourced business process
• Automatically deliver the right information to the right people at the right time
• Know precisely. The powerful and intuitive analytics and reporting tools of BI can automatically alert you of the discrepancies even in the ability and efficiency of a particular staff member.
• Powerful trend analysis of customer behavior and stock movement. This lets you deliver right products to the right regions and avoid dead stocks.
• Optimize the Why, Where, When and How of every process.
• Achieve sustainable business process improvement.
• Establish confidence in your clients that process effectiveness and control will not be lost.
• Client company can reduce the costs of related retained business processes.
• Give more productivity to the outsourcing company’s retained staff.
• You do not have to customize every proposal as a BPO supplier. At a minimum, you could simply integrate the existing business intelligence packages into a basic data-warehousing environment.

A BPO with business intelligence deployment is looked upon much favorably by key executives of outsourcing companies, as they now prefer outsourcing entire business functions than just the IT part. This is why business intelligence is a critical component for all BPO proposals.

Enterprise Performance Management becomes much simpler to implement with a business intelligence solution. As soon as the BPO function discovers a variance in expected business performance, a well-developed business intelligence environment would be able to send an e-mail to the appropriate leaders within all companies, so they can focus on improving overall service-level performance.

Courtesy: Business Objects

• Controlling costs: 35%
• Improving operational efficiency and productivity: 20%
• Accessing top-level skills: 10%
• Freeing up internal resources: 7.5%

According to Nasscom, total IT-BPO clocked (or will clock),

• 2007-08: $52 billion (growth of 28%). $40.4 b from exports, $11.6 domestic. Of the exports, IT grew by 28% to 23.1 b and BPO exports went up by 30% to $10.9 b
• 2008-09*: $62-64 billion
• 2010*: 2010 billion

• Nasscom's Mentorship for SMEs - The Mentorship Programme, which is a key pillar of the Emerging Companies Forum initiative, aims to help the leadership of SME companies develop a keen sense of what needs to be done, to take the venture to the next level.
  
  
• TiE - Most chapters of TiE have a mentoring session. Charter Members help startups with all the guidance they need.