|
|
|
|
The ITES market, owning to its vast potential and exceptional growth rates has attracted the attention of almost all significant business intelligence organizations across the globe. While each has its own analysis and assessment regarding the size of the market and while their figures differ, they are all united in one key inference that this market is heading for high momentum and is capable of generating revenues and employment for millions of people.
From a global perspective, IT-enabled outsourcing services are expected to enjoy a year on year growth of around 25 percent, according to the Dun & Bradstreet report, 2000. A study meanwhile by Goldman Sachs Asian Technology Report, 2000 shows that the ITES will cross the US$ 500 billion mark by 2004.
According to Gartner-Dataquest, the global ITES market is expected to increase from US$ 125 billion in 2000 to US$ 301 billion in 2004. In comparison, PricewaterhouseCoopers (PWC) estimates the global BPO market to be US$ 200 billion in 2004.
The ITES market opportunities meanwhile will fall into three main categories:
|
|
Established opportunities |
|
These include areas in which there is already considerable momentum towards obtaining services from other countries, either through investment in a subsidiary (FDI) or third party provision. |
|
|
Rapidly evolving opportunities |
|
These are areas in which there is considerable outsourcing of services and some early momentum to locate services in another country |
|
|
Latent opportunities |
|
In these areas, case studies show high potential for locating services in other countries but there is no real momentum. |
|
|
The Indian ITES is currently segmented along the following lines: |
|
|
Customer interaction services (including call centers). |
|
|
|
Back office operations/revenue accounting/ data entry/data conversion (including finance and accounting/HR services. |
|
|
|
Transcription/ translation services. |
|
|
|
Content development/ animation /engineering and design/GIS. |
|
|
|
Other services including remote education, data search, market research and network consultancy and management |
|
|
|
Source: Nasscom |
|
According to a Nasscom analysis, the ITES market grew to Rs. 7,100 crore during 2001-02, the above table specifies the break-up of the various ITES segments and their revenue. |
|
ITES SEGMENTATION IN TERMS OF OWNERSHIP According to McKinsey & Co., both the captive and third party markets are expected to witness growth and market share expansion. While the existing captive units, bolstered by their success will scale their operations and move further up the value chain, other global players, encouraged by the performance of their contemporaries and the potential of the Indian ITES market will foray the Indian market through partnerships with third party ITES players. At a later stage some of these companies may opt for a direct presence, they are likely to make an entry through third party players. |
|
 |
|
Source: Nasscom |
|
|
|
|
