Indian IT-BPO Industry on a steady growth path

India’s reckoning as the next global superpower can be largely attributed to the success of its IT-BPO industry which has established ‘Brand India’ and its technological capabilities and talent worth, on the global scenario.

The industry is continuing on its strong growth trajectory and has become the ‘nerve centre’ for global outsourcing. Over 2/3rd of the Fortune 500 and a majority of the Global 2000 firms leveraging global service delivery are now sourcing from India. As per NASSCOM, the Indian IT-BPO revenue is expected to grow by over 33% reaching USD64 billion in 2008.

Yet, the size and scope of the opportunity and the strategic advantages in realizing its full potential are significantly larger.

Employment in the Industry

While, direct employment in this sector is expected to touch 2 million by the end of this fiscal, there is still a need of nearly 1.5 million skilled professionals more, to help the IT-BPO industry meet its target in the next 3 years. The BPO sector alone, which has provided estimated direct employment to 704,000 professionals in FY 2007-08, is projected to generate 1.4 million jobs by 2010.

The large and growing graduate pool remains a key differentiator for India as a global sourcing destination and fundamental driver of its IT-BPO growth.

Demand-Supply gap in skilled manpower resources

Nearly 400,000 engineering graduates, 2.5 million general graduates and over 265,000 post graduates will be passing out of higher education institutions in India this year. However, low levels of suitability and skill gaps in the graduate and post graduate pool are major challenges being faced by the industry. Currently, only about 25% of engineering graduates and 10-15% of general graduates are employable in the sector.

The BPO sector is also faced with a high attrition rate of nearly 40%, with some companies reporting attrition as high as 50 percent. Top companies are investing as much as 4-6% of their annual revenues on training and skill enhancement, which is quite high by most industry standards.

UNO's Unique Solution

Millions of Graduates aspire to work with Top BPO Organizations. However we find that more than 90% of them are found wanting and not equipped to perform in BPO. UNO Workforce with its strong industry association, state of art infrastructure, industry relevant & endorsed curriculum and unique student education delivery process makes a large number of graduates ready to perform in Top BPO companies.