ITES sector in India grew 46% in 2003-04 to $3.6 billion. This sector is estimated to register a growth of about 40% in 2004-05 to reach revenue of $5.1 billion, the report by PricewaterhouseCoopers (PwC) said.
The ITES-BPO sector has steadily increased its share in total revenue of Indias IT software and services industry from 6.5% in 1998-99 to an estimated 29% in the year 2003-04.
The consulting firm said global corporations are generating cost savings in the range of 40-60% depending on the process offshored to India where manpower costs are 70-80% less than in the United States and the United Kingdom.
The real estate costs and general and administrative expenses are low in comparison with developed countries, yielding additional cost savings.
PricewaterhouseCoopers said yet another compelling rationale for ITES companies to base operations in India is that it allows them to capitalise on time zone differences and provide services round-the-clock each day of the week.
Apart from savings in manpower and allied costs, Indian firms offer 20% higher productivity in comparison to other competing countries like the Philippines, Canada and Australia, PwC said.
In terms of quality of services offered, India ranks 30% higher than any other region. the consulting firm said.