Dun & Bradstreet India is pleased to release the sixth edition of its premium publication ‘India’s Top ITeS and BPO Companies 2010’. Although the global recession had affected the growth of the ITeS-BPO industry, it still continues to be a fast-growing segment in the IT-BPO sector. With economic revival signs in sight, the sector is expected to regain its high growth trajectory in the near future, thus encouraging us to continue tracking the sector through this year’s edition.

India has managed to retain its dominance in the ITeS-BPO arena since the outsourcing inception, thus carving niche as the global outsourcing hub. The past couple of years have witnessed the transition of the sector from offering nascent BPO services to that of rendering high-end analytical and knowledge services to global clients. Companies are now making a conscious effort to increase their value propositions in the form of integrated service offerings across diversified verticals through unified platforms. Despite a partial economic global resumption, the sector managed to report a moderately healthy growth.

According to NASSCOM estimates, the Indian IT-BPO sector stood at US$ 73.1 billion in FY2010 with IT services and BPO services accounting for around major shares of around 50% and 21% respectively.

The remaining was contributed by software products & engineering services (17%) and hardware segments (13%). From FY2007-2010, the BPO sector (domestic and exports) recorded a CAGR of around 19% to reach US$ 14.7 billion in FY2010; outpacing the industry (15%) and IT services (17%) growth in the same period. In FY2010, exports which account for more than 80% of BPO exports, stood at US$ 12.4 billion. However, it has to be noted that the share of exports for the BPO market has been steadily decreasing over the past couple of years. The silver lining, however, seems to be in the form of a strong demand from the domestic market, primarily coming from the growing BFSI and telecom sectors.

On an optimistic note, however, the recessionary impact and its gradual recovery has opened up opportunities for the Indian ITeS-BPO companies, and global companies are expected to adopt outsourcing as an initiative to reduce cost. Combating the challenges faced in the backdrop of the global recession, the ITeS-BPO sector seems to have adapted innovative methods of survival. Fully matured service lines are now targeting other potential avenues and verticals through flexible business models for growth. The emergence of rural BPOs is an indication of the unexplored potential of the sector.

Dun & Bradstreet is confident that the publication will serve as a reliable and a ready reference tool on India’s leading ITeS-BPO companies. I hope you enjoy reading ‘India’s Top ITeS and BPO Companies 2010’ and I look forward to receiving your suggestions.

Kaushal Sampat
President & CEO - India
Dun & Bradstreet