BPO revenues grow to $2.6 billion in 2002-2003

Seems like BPO revenues are increasing faster than thought, according to India Telecom News.

The branding of India as high quality centre at lower costs by the IT software sector over a decade has enabled the nascent BPO (business process outsourcing) segment to notch export revenue of $2.6 billion by the end of the fiscal 2002-03, constituting 28 per cent of the total IT exports of $9.6 billion.

But with a growth rate of 75 percent currently as against 30 per cent by the IT services sector, the BPO sector is set to achieve the $10 billion target much earlier than 2008, the timeframe set by the McKinsey-Nasscom study. In the current fiscal (2003-04), the BPO sector is estimated to post export revenue of $5.3 billion, which will surge to $8.11 billion by 2006 and $11.7 billion by 2008.

The global BPO industry, which is currently valued at $142 billion, is estimated to touch $540 billion by 2007 and cross $1.2 trillion by the end of the current decade. About 60 per cent of this global market is projected to originate from the US alone, with Europe, Far East and the Asia Pacific region contributing the rest

At this pace, bandwidth is going to become an issue. Hopefully, the govt will remove the bottlenecks to allow the industry to keep growing a rapid clip.