Businessworld

In India, customer care = continues to=20 be the dominant segment in BPO with both revenues and = employment=20 more than doubling in 2002-03 over 2001-02. But the = big-ticket,=20 big-billing business is not customer care. Other areas that = had=20 significant growth, according to Nasscom, were = administration=20 (from $185 million in 2001-02 to $210 million in 2002-03) = and=20 finance ($300 million to $510 million), registering revenue = growth=20 of 67% and 70%, respectively. Payment services grew from = $110=20 million to $210 million and content development from $450 = million to=20 $465 million. All these belong to the following verticals, = the=20 verticals witnessing explosive = growth.

Banking,=20 Financial Services and Insurance (BFSI): (Growth = rate:=20 60-70%.) Players like ICICI OneSource, exl Service.com and=20 WiproSpectramind are already active in this segment. Indian = IT=20 companies have traditionally focussed on this segment. BFSI = clients=20 are keen on offshoring since their frontend operations are = in=20 high-cost locations. Their quest to control the = expense-to-revenue=20 ratio makes this a high-interest area for BPO firms which = can rid=20 them of a lot of back-office work. For instance, an = insurance=20 company looks at reducing the cost of servicing a policy = (15-20% of=20 the total cost). However, such operations are still not = coming to=20 third-party Indian BPO players. Rather, their contribution = is=20 restricted to areas like retail banking, credit card = processing and=20 mortgages, and only now are they going on to complex = functions like=20 underwriting.

Telecom: (Growth rate: = over=20 100%.) Practically anything, barring the networks, can be = outsourced=20 in telecom. So about 25% of global outsourcing is in = telecom,=20 estimates Sanjeev Aggarwal, CEO, Daksh eServices. BPO = outfits are=20 engaged in activating services, managing relationships, = answering=20 queries, offering technology support and billing. HCL = Technologies=20 BPO Services, Hinduja TMT, ICICI OneSource and = WiproSpectramind are=20 in this space.

Healthcare: (Growth = rate:=20 100-120%.) It is a nascent area for Indian BPO firms, but = has great=20 potential. Already, about 20 companies are engaged in = healthcare=20 ($1.3-trillion industry in the US), offering services like = billing,=20 medical insurance, disease-coding, claims management, = accounting and=20 clinical trials data management. The start-ups employ = 200-500 people=20 and include Apollo Health Services in Hyderabad, Ajuba in = Chennai,=20 Healthscribe in Bangalore and Hinduja TMT. Vision = Healthsource CEO=20 Anurag Jain says: =E2=80=9CHealthcare has been a late = starter as there are a=20 lot of legacy systems in the US and not many Indian = companies have=20 specialised in the area.=E2=80=9D Indian BPO firms are = catching the=20 attention of global players. Last month, Vision Healthsource = was=20 acquired by the $1.3-billion Perot Systems Inc. for $10=20 million.

But high-end healthcare will be = difficult=20 to crack because it requires specialised skills. For = instance,=20 companies need HIPAA-trained supervisors (HIPAA is a US = health=20 services norm), who can adjudicate a claim or do = underwriting.=20 Valdel, Amsoft Technologies=E2=80=99 new Bangalore-based = start-up, just=20 acquired a company in the US and will specialise in=20 healthcare.

Human Resources: = (Growth=20 rate: 115-125%.) HR is another underdeveloped area but it = has the=20 potential to grow to $3.5 billion-5 billion by 2008. = Companies are=20 likely to get their act together in the next 12-18 months. = The=20 $450-million Exult Inc. started a 70-people outfit in Mumbai = in May=20 this year. Patni Computer Systems is looking to leverage its = work=20 done on 401K pension plans to get into HR. Daksh has just = started=20 payroll processing. The $5-billion payroll processor = Automatic Data=20 Processing is also planning to start operations in=20 Hyderabad.

By 2008, the global HR outsourcing market = will be=20 $44 billion. Even if less than 10% of this comes to India, = it will=20 create 56,000 jobs. HR processes include data entry, payroll = processing, staffing, training, resume management, = compensation,=20 employee communications, pension plans, leave administration = and HR=20 data analytics. The billing rates could be $11-14.=20

Retail: Retail services is an = untapped=20 opportunity. Retail chains like Wal-Mart, Selfridges and = Tesco=20 outsource back-office work such as logistics management,=20 receivables, payables and collections. Some of this could = move to=20 India. Indian companies that undertake collections for = clients:=20 Global Vantedge and ICICI=20 OneSource.

Hospitality: Areas like = travel=20 and hospitality that are already being undertaken by = specialists=20 like the Bird Group or broadbased service providers like = ICICI=20 OneSource and WiproSpectramind will also grow. = That=E2=80=99s because=20 airlines and hotels are under pressure to reduce overheads. = Kale=20 Consultants offers revenue accounting and sales order jobs=20 specifically for the airline industry.

If all goes = well and=20 the infrastructure doesn=E2=80=99t collapse, business within = these verticals=20 could account for over 2 million jobs and $24 billion in = revenues by=20 2008.