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Nasscom is the premier trade body for IT and  voice of the industry in India. Itissues many reports about happenings as well as provide vital information for theindustry. It has released the rankings for the top 15 third party ITES companies inIndia. These rankings are based on revenues earned by the companies in a financialyear 2005-2006.
According to Nasscom report, ITES, BPO segment grew 37 percent. This segment aloneearned $6.3 billion revenue for the IT industry, which totally generated $23.6billion for the financial year.
Kiran Karnik, presided of Nasscom said  In 2005-06, the industry size and growthexceeded our forecasts, reflecting strong demand. The entire software and servicesindustry is expected to record revenues of $36-38 billion in FY07; we expect theITES-BPO segment to continue its growth momentum and expect exports to cross $8billion during FY07. The growth in the sector is being driven by steady increase inscale and depth of existing service lines; the addition of newer vertical-specificand emerging niche business services; continued expansion of service portfolios andhigher value processes."
"In addition, the BPO industry has significant headroom to grow, with theoutsourcing potential being 12 times current revenues. The industry is likely tocontinue to witness an increase in M&A activity which could lead to a significantconsolidation in the BPO industry, in the process creating world scale players," headded.
The major focus of industry will be on how to make India as the prominent hub forglobal outsourcing and make Indian companies more competent in rising competitiveenvironment.
Foll owing three major services are provided by ITES companies in India.. Financing. Human Resource Administration. Customer services
These three services alone are contributing nearly 90% to revenue for the industry.This growth is expected to continue without any significant change in current fiscalyear 2006-2007, industry sources said.
Two major reasons for this growth are. Recruitment by the leading ITES companies. Employment has risen by 32% approx.. Besides overseas, domestic market has also witnessed significant growth withestimated local outsource value of $860 million in FY 2005-06
Indian IT industry is looking for huge potentiality in other under-developed marketssuch as Pharma. This sector is believed to be having the worldwide market of $17billion in 2004 and expected to exceed $49 billion by 2011, growing at CAGR of 16.3percent.
Another market that could be interesting for Indian ITES industry would be legalservices market. This is fast upcoming segment believed to grow to $6 billion by2010
Nasscom in the year 2001-2002 initiated the exercise of introducing the Top 15players -- (third party call centre and BPO players) within the ITES sector. Thiswas based on the information collected from the survey -- received from Nasscommember companies and further revalidated with the STPI (Software Technology Parks ofIndia)
However, Nasscom has revalidated its ranking pattern after consulting with industryexperts. It now, validates ranking based on US GAAP (Generally Accepted AccountingPrinciples in the United States) analysis. The present year ranking submitted isalso based on GAAP
Please do visit at http://www.kpoasia.com to know more about outsourcing.
