'ITeS-BPO revenue to grow more than $10 bn annually'

NEW DELHI: The annual revenue of Indian ITeS-BPO industry is expected to rise by more than $10 billion by FY10 from the current fiscal levels, notwithstanding the concerns over rupee appreciation and competition from countries like China and Philippines.

According to a new study by international research and consultancy firm Dun and Bradstreet, the Indian ITeS-BPO industry would reach a revenue of $23.7 billion by FY10 against an estimated $12.9 billion in FY08.

The continuing surge in global spending on business process outsourcing activities would help boost the Indian ITeS-BPO market, even though rupee appreciation could put some pressure on its future growth, D&B said in the report.

"The global spending on BPO is expected to reach $618 billion by 2010 from around $423 billion in 2006, signifying the huge potential for countries such as India," D&B's Asia-Pacific President David J Emery said.

"At present, India's share to the global spending on BPO market is around 2 per cent, which though modest, does indicate the huge opportunities the country has to grow its revenue share," Emery added.

However, the future growth could be slightly moderate in view of the recent appreciation of the rupee against US dollar, the report noted.

Exports would continue to remain the major revenue generator and would contribute about 86 per cent to the total industry revenue in next three years.

Besides, domestic market is also expected to emerge as an important driver with an estimated revenue of $3.41 billion by FY10.