In India

ITES
ITES is defined as outsourcing of processes that can be

enabled with IT and covers diverse areas like Finance, HR, Administration, health care and telecommunication etc.

Demand of IT Enabled Services

The demand for call centres was primarily driven by the

increasing trends of companies becoming more and more direct and personalized in their sales and service approach to their customers. Call Centres can meet the customer's sales and service needs, more efficiently and at a fraction of the cost, of doing it in person. They enhance organizations competitiveness and also improve customer loyalty. Over time, call centres has evolved more as a business process than a mere a business operation.

Advantage India
A large educated English-speaking population.
Cost effective manpower in a call centre operation,

manpower typically accounts or 55 to 60% of the total cost. In India, the manpower cost is a approximately one-tenth of what it is overseas. In India about 100,000 engineers graduate each year. These can be used in Call Centres for troubleshooting /tech. support, as the salaries are very much lower than in Europe or the US

Location attractiveness:
Government initiatives considerably enhanced the attractiveness of

India as a location. These include establishment of Technology Parks like Hitec city Hyderabad, Tata-Singapore Consortium Bangalore, Tidal Park Chennai, etc. Liberalisation of telecom sector allowing private players in ILD, NLD and leased the services Competition among state governments to attract BPO investments
Tax holiday under section 10A of the Income-tax Act, 1961, rebates

in customs duties, liberal investment policies, etc. The international bandwidth situation in India has improved dramatically with the launch of India's first private undersea cable on 9 April 2002.

People attractiveness:
India's large, low cost, English speaking talent. Today, the

wage of an Indian Call Centre operator is about 15% of his or her US counterpart. Every year, 2.1 million graduates and 0.3 million-post graduates pass out of India's non-engineering colleges. While 2.5-3 per cent of them find jobs or pursue further studies abroad. Hence, even at current rates, there will approximately be 17 million people available to the BPO industry by 2008. Massive increase in the number of skilled workers available to the industry.

Spread of ( ITES ) in India:

ITES Services in India are spread around cities. The 9 cities

where 90 % of ITES-BPO situates are Ahmadabad, Bangalore, Chennai, Hyderabad, Kochi, Kolkata, Mumbai, NCR (Delhi, Noida and Gurgaon) and Pune. ITES is also spreading to new cities like Jaipur, Bhubaneswar, Lucknow etc. Developing ITC infrastructure and lower manpower cost. ITES Services are centred on Medical Transcription, Call Centre, Back Office Operation etc. It is expected that the ITES Services in other fields mentioned will also pick up substantially and India would continue as a major destination in ITES.

Environment For Entering RASHTRA

According to McKinsey & Co, ITES is expected to grow 20

fold by 2008. Call centres account for 80 percent of these services. Overall Market for ITES will amount to approximately $142 billion worldwide. Gartner-Dataquest has projected the global ITES market to grow from $125 billion in 2000 to $301 billion by 2004. PWC has projected the global market at $200 billion by 2004. Nasscom-McKinsey report has scaled up the ITES export potential and has projected it at $21-24 billion by 2008. Relevant infrastructure and human resource & better lifestyle improvement in India.

Overall Performance
The Indian (IT-ITES) industry has continued to perform its role as

the most consistent growth driver for the economy. Service, software exports and BPO remain the mainstay of the sector. some of the significant indicators for these remarkable achievements. The IT/ITES exports have grown to a staggering US$ 46.3 billion in 2008-09. The IT sector currently employing 2.2 million professionals directly and another 8 million people indirectly accounts for over 5% of GDP. A majority of the Fortune 500 and Global 2000 corporations are sourcing IT/ITES from India and it is the premier destination for the global sourcing of IT/ITES accounting for 55% of the global market in offshore IT services and garnering 35% of the ITES/BPO market.

IT ITES Industry Revenue Trends

70 60 50

U S $

40 30 20

10
0 IT-ITeS Exports ITeS Domestic total

2001- 02 2002- 03 2003- 04 2004- 05 2005- 06 2006- 07 2007- 08 2008- 09 CAGR

Source : Nasscom

Segment wise export Revenue Trends in IT ITES Industry

60 50 2001- 02 2002- 03 2003- 04 2004- 05 2005- 06 2006- 07 2007- 08 2008- 09 CAGR IT Service ITeS-BPO Products & Services Total IT-ITeS

U S $

40 30 20

10
0

Source :Nasscom

Segment wise Domestic Revenue Trends in IT ITES Industry

50 45 40 35 25 20 15 2001- 02 2002- 03 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 2008 -09 CAGR IT Service ITeS-BPO Products & Services Total IT-ITeS

U 30 S $

10
5

Source :Nasscom

FMCG (Fast Moving Consumer Goods) Sector

Fast Moving Consumer Goods (FMCG) or Consumer

Packaged Goods (CPG) are products that are sold quickly and at relatively low cost. Examples include nondurable goods such as soft drinks, toiletries, and grocery items.

Performance
FMCG industry is the fourth largest sector with a total market

size of over US$18 billion in 2008 as per NASSCOM. The premium segment (~25%) caters mostly to the higher/upper middle income consumers while the price sensitive popular or mass segment (~75%) consists of consumers belonging mainly to the semi-urban or rural areas. The market growth over the past 5 years has been phenomenal, primarily due to consumers growing disposable income which is directly linked to an increased demand for FMCG goods and services.

Financial Services
The financial services sector has been giving a great

impetus to the Indian economy, as it accounts for 60 per cent of the gross domestic product (GDP) wherein the financial services segment has been a major contributor. Financial services industry mainly includes banking, financial services (like broking, mutual funds) and insurance and hence, is majorly referred as the BFSI industry.

Performance
Recording 8.7% growth in income (taken as sales for

comparison purposes) they showing pre-tax profit to the extent of ` 2,514.83 crore as compared to ` 1,823.54 crore in 2008-09. Net profit (post tax) increased by 37.78 % from ` 1371.42 crore in 2008-09 to ` 1889.58 crore in 2009-10. The aggregate reserves of RRBs increased to ` 8065.26 crore as on 31 March 2010 from ` 6753.99 crore as on 31 March 2009, while their net worth increased from ` 8610.31 crore to ` 10472.10 crore during 2009-2010.

5. Conclusion
This study has proposed Developing procedure of IT Enabled services models in India.
In light of above data and the study of IT Enabled services history,

performance, growth and future scope in India it is an Rosy

environment for entering RASHTRA in IT Enabled services in

Indian market.
Aiming of 30 % growth rate is achievable.

Analyzing the current FMCG & Financial sector of India there

attempt will be succeed entering this sector.

Sources
http://www.mit.gov.in
http://www.google.co.in http://nasscom.org

http://www.nielit.in
http://www.mckinesy.com http://www.mca.gov.in http://economictimes.com

By : Shekh Monti Ali Suraj Saw