PIYUSH PANDEY, Ahmedabad.
With the uncertainty over the US president long settled, foreign
outsourcing and information technology enabled services (ITES) companies
have begun scaling up their Indian operations.
Before the US election, there was a fear that a Democratic president
might put stricter rules on outsourcing there by pulling the plug
on the fledgling BPO sector.
To begin with, Effective Teleservices, the first American company
based at Gandhinagar's Infocity, has announced its expansion plans
and will scale up its operations by over 1,000 seats. This expansion
is estimated at $3 million.
"We have already invested over $2 million in India and planning
to invest another $3 million in scaling up our Indian operations,"
A C Smith, president, Effective Teleservices Inc told Business Standard.
The US-based Everest Group, which set up its first research and
development (R&D) and consultancy office at New Delhi in December
last year, expects to generate revenue of over $10 million in the
first three years of its Indian operations. The business process
outsourcing (BPO) consultancy firm is well established as a tier
I provider of strategic sourcing advisory services.
According to NASSCOM the US will outsource over 6 million high
tech jobs to India by 2005. And as per to the Gujarat chapter of
CII, as many as 26 companies are doing business process outsourcing
(BPO) with the state. The state earned a revenue of Rs 25 crore
in 2001 from this sector.
The BPO business has been growing at a rate of 70 per cent a year
and its net worth in India is around $6 billion. The sector employs
around 1 lakh people. According to projections made by McKinsey,
if BPO grows by 27 per cent by 2008, the activity will deliver a
revenue of $17 billion, employing 1 million people in the process.
MphasiS, the leading information technology (IT) and business
process outsourcing (BPO) service provider has decided to set up
its third centre in the country at Mangalore by the end of the current
year to cater to the huge demand building up from its overseas clients.
The company will recruit over 1,000 professionals for the new centre
at Mangalore and will ramp up operations to touch the 25,000-employee
mark in the next three years.
Similarly, Asite SolutionsLtd, a UK-based public listed software
company has inaugurated its first branch office in July this year
plans to set up satellite centres at various other important cities
such as Bangalore, New Delhi, Mumbai, Kolkata, Chennai and Hyderabad
amongst others. The company plans to invest over Rs 10 crore in
the next two years and to employ over 500 professionals in the next
"Our business operating system supports a wide range of B2B
processes with a focus on procurement and project management. We
automate key processes, creating an extended network that promotes
more efficient interaction and better communication between businesses,"
said Anil Malhotra, Asite Solutions Limited.