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Part - III

• Global Market size estimates of BPO
  Gartner/Dataquest predicts the market size of BPO to be $ 544 billion in 2004 IDC has predicted it to be $300 billion in 2004.

• Growth In Indian BPO/ITES market
  With a 70% growth in a single year and US$ 21-24 billion market projected by 2008, BPO industry is becoming one of the fastest growing sectors. The latest NASSCOM-McKinsey report projects that BPO related activities will create about one million jobs and would contribute more than $17 billion to the Indian economy by 2008. The nascent market has high growth.

A study by Gartner on the emerging BPO market, shows that BPO services worldwide will grow from US$ 119 billion in 2000 to US$ 234 billion in 2005 at a14.4 percent compound annual growth rate (CAGR). By 2005, the number of outsourced business processes will have doubled as compared to the existing numbers, the study states. Gartner's study by geography shows that the pattern of BPO is centered around the US market, which in revenue terms accounted for US$ 70.6 billion of the overall industry. The trend is likely to continue till 2005 as the US is expected to outsource US$ 135.9 billion worth of business. The Gartner study also indicates that Europe, Asia Pacific, Japan, Canada and the rest of the world, will account for the remaining contributions.

The Gartner study shows that in terms of the processes being outsourced, human resources lead the way with an existing share of US$ 33.4 billion (out of a total of $119.4 billion). Supply chain management, payment services, sales, marketing and customer care, finance and accounting and administration are the other contributors. This trend is likely to continue until 2005 with the mix remaining the same.

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*Contributed by -
Pankhuri Jain,
PGP I,
IIM Kozhikode.