India remains leader in BPO segment: Govt

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Despite the rise of Philippines in the outsourcing sector, India remains the leader with an estimated revenue of USD 15.9 billion from the segment in 2011-12, Minister of State for Communications and IT Sachin Pilot said in Parliament on Friday.

"As per Nasscom, in the BPO segment, revenue of Philippines is increasing but India continues to be the leader with revenue of USD 15.9 billion (estimated) in 2011-12 as compared to USD 14.2 billion in 2010-11," Pilot said in a written reply to Rajya Sabha.

According to a report by research firm Gartner, Indian entities engaged in BPO are seeing more traction and visibility overseas, especially with their flexibility to wide range of offerings for customers.

The Indian BPO players are willing to consider new 'business pricing models' and also show lot more flexibility in catering to the needs of customers, the study said.

As per estimates from the National Association of Software and Services Companies (Nasscom), the Indian IT-BPO sector is expected to aggregate revenues of over USD 100 billion in 2011-12.

In order to retain the leadership position in BPO segment and tackle competition from countries like Philippines, Nasscom has created a forum to address the specific challenges of the industry such as generation of ready to deploy talent pool, building capabilities in KPO and legal process outsourcing, Pilot said.

"Government continues to provide incentives to IT sector, which include allowing duty free import of goods..., excise, CST and IT exemptions and various fiscal concessions in SEZs," he added.