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BPO firms urged to widen services
BS Bureau in Bangalore | June 13, 2003 12:21 IST
The National Association of Software Services Companies on Thursday released a roadmap for the Indian ITES-BPO industry to increase their global marketshare from the current 2 per cent to 4.8 per cent by 2008.
The industry could achieve this by looking at new service lines and extending the range of offerings horizontally to global customers.
"Broadening the service portfolio is not only useful in building scale but also facilitates a stronger proposition customers and better capacity utilisation for vendors," said Som Mittal, chairman of Nasscom.
Kiran Karnik, president of Nasscom, also underlined the need to broaden the reach and target new service lines such as content development and human resources.
"Currently we have minimal presence in these high growth area and there is a need for vendors to build domain knowledge to tap the potential," he said.
He also saw a significant potential in lines such as sales, legal, engineering/research and development, and logistics.
Worldwide, spending in 2006 is likely to be $165 billion in sales, $163 billion in legal, $123 billion in engineering/research and development and $308 billion in logistics.
This was the opportunity ahead. Customer care continued to be the dominant segment with both revenue and employment more than doubling in 2002-03 ove-r the previous year.
It accounted for $810 million in revenue, compared with the potential of $8 billion by 2008. Finance clocked a revenue of $510 million, while it has a potential of $2.5 billion. Human resource could earn a revenue of only $45 million when its potential by 2008 was at $3.5 billion.