IT outsourcing has already seen the advent of billion dollar companies from India (Infy, Wipro, TCS, Satyam) which compete head-on with global giants such as IBM and HP. A recent report, Firstsource in WNS, Intelenet buyout radar, Economic Times, 27 May 2008, suggests that we likely will see a similar pattern in the business process outsourcing (BPO) market.
WNS and Intelenet are both reportedly planning to bid for Firstsource, which should take combined entity revenues higher than or close to $billion mark. Genpact also looks all set to achieve billion dollar revenue this year. If this happen, the BPO market will see its first billion dollar player much faster than did the IT outsourcing market. The IT sector took almost 15 years to get there; BPO seems on track to arrive there in 10 years.
Does that mean that with each new wave of outsourcing (IT, BPO, KPO, and LPO) companies are becoming better with the benefit of previous wave (experience) and growing faster? If yes, then we will perhaps see the first KPO/LPO $billion business in 5 years.
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