1. Business Process Outsourcing Arun Manohar EE03B109

6. Global Market for IT-enabled Services (by 2008) In that the opportunity for India will be $ 17 Billion. Source: NASSCOM McKinsey Study - India IT Strategies 141.2 Total 3.0 Market Research 5.0 Website Services 15.0 Networking Consulting & Management 18.0 Remote Education 44.0 Data Search, Integration & Management 5.0 HR Services 1.2 Engineering & Design 2.0 Translation, Transcription & Localization 15.0 Finance & Accounting Services 33.0 Customer Interaction Services The $142 Billion market can be broken up and shown as below:

8. Source: U.S Department of Labour and Forrester Research, Inc. 3,320,213 1,591,101 587,592 102,674 Total 1,659,310 791,034 295,034 53,987 Office 9 26,564 97,321 29,064 4,619 Sales 8 29,639 13,846 5,576 818 Art, Design 7 74,642 34,673 14,220 1,793 Legal 6 36,770 14,478 3,677 0 Life Sciences 5 84,347 83,237 32,302 3,498 Architecture 4 72,632 276,954 108,991 27,171 Computer 3 48,028 161,722 61,252 10,787 Business 2 88,281 117,835 37,477 0 Management 1 2015 2010 2005 2000 Job Category Number of U.S. Jobs Moving Offshore Sl.No

15. Comparison of India Vs US BPO operating costs Source: Industry Sources, Merill Lynch 2003 (From the Nasscom Strategic Review 2003) 20% 11,854 58,598 TOTAL EXPENSES 50% 1,500 3,000 Depreciation 33% 847 2,600 Property Rentals 155% 2,328 1,500 Telecom 12% 1,000 8,571 G&A Expense 14% 6,179 42,927 Personnel (Full Time Employee) India as % of US costs India United States US$ Cost per FTE

16. Cost Difference

19. Statistics regarding number of employees Vs revenues sector wise in India Source: Nasscom 2,350 1,71,100 Total 465 44,000 Content development 310 25,000 Administration 210 11,000 Payment service 45 2,100 HR 510 24,000 Finance 810 65,000 Customer care Revenue (in $m) Employment 2002-03 Service Area Growth trend of the outsourcing industry

23. India’s Competitors Good only for low-end jobs Immediate neighbor of US, 30% cheaper than US; Spanish skills Mexico Small talent pool; high costs European language skills Czech Republic, Hungary Poor infrastructure; corruption; language Technology skills Russia Quality of English not good Low costs China Skill shortage Time zone similar to Europe; 25% cost saving, good for niche work South Africa High costs Understands the US market; high-end skils Canada, Ireland, Australia More expensive than India; small talent pool Understands the US market; voice work; low attrition Philippines Limitation USP Country

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