A Report on Information Security and Data Privacy in the Indian BPO Industry

            
 
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Case Details:

Report Code : BREP035
Report Length : 34 Pages
Period : 2004 - 2006
Organization : MphasiS, Wipro Spectramind, HSBC Electronic Data Processing India Pvt. Ltd. , HCL Infosystems Ltd , Hifn, IBM, Infinity eSearch, International Association of Outsourcing Professionals (IAOP), National Association of Software and Service Companies (NASSCOM), Call Centre Association of India (CCAI).
Pub Date : 2007
Teaching Note : Not Available
Countries : India
Industry : Energy

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Introduction

India has rapidly achieved the status of being the most preferred destination for business process outsourcing (BPO) for companies located in the US and Europe. This is because of the availability of low cost skilled manpower, a large English speaking population, and appropriate infrastructure in India.

Indian firms account for 80% share of the global market for cross border BPO services.2 According to the National Association of Software and Service Companies3 (NASSCOM), the revenues generated by ITES-BPO exports from India were US$2.5 billion4 during 2002, which increased to US$3.6 billion in 2003.

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In 2004, export of ITES-BPO to India generated revenues of US$5.2 billion.

In addition to exports, the domestic market for BPO services has also grown. The domestic BPO market was US$0.2 billion in 2002, US$0.3 billion in 2003, US$0.6 billion in 2004, and US$0.86 billion in 2005.

Services related to Finance and Accounting, Customer Interaction, and Human Resources Administration accounted for the major portion (89% in 2004) of the BPO revenues generated. In 2004, outsourcing of HR operations increased at the global level.

In India, the value of Human Resources operations outsourced during 2004 was US$165 million, as compared to just US$75 million during 2003. Emerging segments of the BPO industry in India include Knowledge Process Outsourcing (KPO) and Finance and accounting outsourcing. In 2005, the Indian ITES-BPO industry recorded an annual growth rate of 37% to reach a value of US$6.3 billion.5

NASSCOM has forecast that the ITES-BPO segment in India will garner revenues of US$8 billion during 2007...

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2] Sify Business, “Data Security is a Major Threat to BPOs,” http://sify.com/finance/, September 27, 2004.

3] NASSCOM is a non profit organization and the main body which represents the IT software and services industry in India.

4] “NASSCOM's Ranking of Third Party Players,” http://www.gtllimited.com, June 8, 2005.

5] “India's Top 15 BPO Companies,” http://www.rediff.com/money/2006/jun/05bpo.htm, June 5, 2006.

 

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