Propellers for growth
The Global market for ITES sector is expected to be around US $ 611 billion. “Lots of people, with basic education and a mastery over English-this is India’s strength” points out an industry expert. “This is why China and Philippines have not been able to dominate the ITES market; though they have cheap labour, they are not yet fluent in English.” Thus the Indian ITES industry remains buoyant, at least till China catches up. Currently employing about 106,000 people in India, the ITES industry is estimated to give employment to more than one million people.

Threats faced by the Industry
Global Backlash: The industry is facing an unprecedented backlash globally against the outsourcing of work to India. Protests in USA, UK and Australia are already rising at an alarming rate. E-Funds, a US based corporation has even been forced to transfer some jobs from its Mumbai operations back to the US because of huge protests.
Threat from Other markets: Markets like China, Philippines and Ireland with cheap and skilled labour pose a large threat to the Indian ITES sector

Lack of Expansion: The industry soon face risks like continuously expanding the pool of talent and education. Lack of fluency in European languages like French, Spanish, Italian i.e. languages other than English, is India’s weak point.

Watch Out For
Banking and insurance is likely to provide the maximum opportunity to the ITES industry due to a high cost base and a large number of processes which can be outsourced.

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Regards

Asha