BPO in India - Good companies, bad karma!!

BPO in India - Good companies, bad karma!!

There’s also concern on the profit margins of Indian IT firms (especially smaller and medium-sized ones) post 2009, when the Software Technology Parks of India scheme expires.

Meanwhile, more service providers are now nibbling at the outsourcing pie. The number of providers winning contracts has increased by 64 per cent in the past four years - from 55 in 2002 to 90 in 2006.

The Big Six of outsourcing - Accenture, ACS, CSC, EDS, HP and IBM - still dominate the offshore outsourcing market, having won 73 per cent of all contracts in 2006, compared to 18 per cent for the Indian providers (source: TPI).

The good news for Indian IT firms, though, is that the Big Six are winning a decreasing proportion of deals valued at over $50 million (over Rs 200 crore). In 2006, the India-based providers achieved 7 per cent of the total market share, up from a minuscule 0.5 per cent in 2002.