ITeS (IT-enabled Services) Industry
IIndia is one the world’s leading destinations for IT-enabled Services due to its low cost advantage and immensely talented human resource. The Indian IT & ITES sector is expected to grow from US$ 101 billion in FY 2012 to US$ 225 billion in FY 2020.
Over the years, countries all over the world have rated India as the most attractive off shoring destination in present times.
- IT BPO segment Market size: USD 20.0 billion during FY 2013.
- 80% of Indian BPO revenue comes from exports .
- BPO shares 23.2% of the total IT exports from India.
- BFSI, Telecomm, Manufacturing and Retail are key businesses for IT-BPO in India.
- As a proportion of national GDP, the sector revenues have grown from 1.2% in FY 1998 to an estimated 7.5% in FY 2012.
The captive business models are often referred to as the pioneer of Business Process Outsourcing (BPO) services in India. A captive BPO centre usually handles proprietary (core) processes that are consciously retained by a parent entity for a direct control and ownership. Most MNCs, according to industry estimates, achieve a 50% cost reduction through outsourcing to their captive unit.
Third Party BPO
Third-party vendors are mostly preferred over captive units because of low cost, flexibility and the ability to enforce price and quality competition.