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©Amit DEV, director & Expert team at CMAI Assn of India; September 2012
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2010 2011 2012 2013 2014 2015
$351 B $373 B $389 B $406 B $423 B $443 B
GLOBAL OUTSOURCING MARKET SIZE
FY 2012
Middle East &Africa
Central & LatinAmerica
Asia Pacific
WesternEurope
North America
REGIONAL GROWTH OF GLOBAL IT-SERVICES
Manufacturing 28.8%
Energy 15.7%
Government 15.4%
Consumers 11.9%
BFSI 11.1%
Telecom 7.2%
Education 1.5%
Healthcare 1.0%
Retail 0.4%
Others 7.0%
25.1%
20.6%
17.5%
17.5%
17.5%
17.5%
14.4%
12.7%
12.4%
16% Total
Consumers
Telecom
Healthcare
Government
Retail
Education
BFSI
Manufacturing
Energy
ITO-BPO SPENDING / GROWTH IN VERTICALS
0
20
40
60
80
100
120
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 E FY 2013 E
DOMESTIC
EXPORT
63 69 74
88 101
115
41 47 50 59 69 78
22 22 24
29 32
37
Contribution of IT-BPO Industry to India’s GDP has gone up to 7.5% from 6.4% in 2008. SME sector contributed US $ 5 billion in revenues in current fiscal. Salary hikes could be in the range of 8-10% in 2012-13 as compared to 10-14% in 2011-12. IT Services segment grew by a CAGR of 16% in the last four years to grow to $ 40 billion from $ 22 billion in 2008 despite the economic problems in US and Europe. Indian BPO industry has a share of 36% in the global BPO outsourcing market.
INDIA ITO-BPO REVENUE GROWTH
[
OUTSOURCING SERVICE GIANTS, INDIA
Process consolidation
Remote support Reduction of
manual processes Transformational
outsourcing
Citizen-centric services
Focus on integrated solutions
Enablement of core processes through IT
Discounted Licensed software
Business process automation
Outsourcing of non-core processes
Services and support focus
Social connectivity
Converged solutions
Quality products
Quick and robust service support
EXPECTATIONS OF GLOBAL CUSTOMERS
Clearly, the future of technology services industry is beyond services – it will be a combination of services, solutions and platforms. Indian IT organizations are investing in building platforms to drive future growth opportunities. These domain solutions and technology platforms will offer improved revenue leverage versus talent employed in the industry and will also significantly increase the intellectual property base of the Indian IT industry. The industry can take clue from the fact that public cloud services spending is expected to outpace growth of the overall IT spend by about four times between 2012 and 2015.
With the outsourcing industry emerging from the aftermath of the global
recession, there are a number of trends that give us a glimpse of the future:
Analysts are predicting that the industry will continue to fight short-term
cost pressures, and that there will be pressure on service providers for
more flexible pricing contracts.
Buyers will seek more standardized solutions from their outsourcing
engagements, so they will have to differentiate themselves through
performance rather than pricing.
Many small alliances, focused on increased operational efficiencies,
better quality control and reduced back-office costs, are being set up.
Shared and common services were always considered a threat to
outsourcing, but the trend is changing. Sharing critical business and IT
services has been proven to cut costs, reduce errors and improve
productivity.
Brazil and Russia will make their presence felt in the global outsourcing
market and China will continue to move ahead.
FUTURE OUTSOURCING TRENDS
EXPERTISE FOR GLOBAL DELIVERY
WICS-SERVICES STRATEGY MATRIX
[
ADVISORY SERVICE INSTANCE CLIENTELE
WICS-ADVISORY: TCS AMERICA-DEAL
SUCCESS INSTANCES: WICS-ADVISORS
WICS-EXPERT SERVICES SPECTRUM
CHINA CALL-CENTERS’ COLLABORATION
