The information technology enables services (ITES) - business process outsourcing (BPO) sector in India is growing steadily and could reach $8 billion in 2007 according to a recent survey released by the National Association of Software & Services Companies (NASSCOM).
"In 2005-06, the industry size and growth exceeded our forecasts, reflecting strong demand. The entire software and services industry is expected to record revenues of $36-38 billion in fiscal year 2007; we expect the ITES-BPO segment to continue its growth momentum and expect exports to cross $ 8 billion during 2007, " said Kiran Karnik, President, NASSCOM.
India's business process outsourcing (BPO) revenue from finance and accounting, customer interactions and human resource administration added up to 89% of all industry revenue in 2004-2005 according to the study.
Karmik also predicts an "increase in M&A activity which could lead to a significant consolidation in the BPO industry, in the process creating world scale players."
ThepPharmaceuticals and life sciences sector will experience growth in IT spends, the study concluded. It cited recent reports that showed this sector spent $17 billion in 2004 with the potential to reach $49 billion by 2011.
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