The business process outsourcing industry has attracted yet another corporate giant  --  Larsen & Toubro.

The Rs 8,300 crore (Rs 83 billion) engineering and cement conglomerate is in the process of drawing up a blue print for a foray into this booming sector soon.

Top L&T executives confirmed the development but refused to reveal further details.

"At present, the company is testing the waters and is examining various options available. The BPO business appears to an attractive diversification proposition at present. However, a final decision is yet to be taken," sources close to the development said.

L&T's foray into the segment could be either through its infotech arm, L&T Infotech, or a separate company. The proposed venture will focus on software and construction industries.

The IT-enabled services sector in India, of which the BPO forms a significant part, has steadily increased its share in the overall IT industry, from a low of 6.5 per cent in 1998-99 to almost 20 per cent in 2001-02, according to Nasscom.

The ITES industry in the country is expected to account for 37 per cent of the total IT exports by 2008.

At present, the big players in the BPO segment are: Spectramind, a Wipro subsidiary; Progeon, an Infosys arm; and e-serve International, a Citigroup arm.