Information technology enabled services

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Information technology enabled services, or ITES, is a form of outsourced service which has emerged due to involvement of IT in various fields such as banking and finance, telecommunications, insurance, etc. Some of the examples of ITES are medical transcription, back-office accounting, insurance claim, credit card processing and many more. This is also called BPO or Business Process Outsourcing.

Firms usually from developed countries outsource such services to countries like India, China and Philippines in order to gain from large talent pool and low labor cost.

Going ahead we may see more companies outsourcing such services and hence high competition is expected within countries and companies providing IT-enabled services.

[edit] Industry Size

The global BPO Industry is estimated to be worth 120- 150 billion dollars, of this the offshore BPO is estimated to be some US$11.4 Billion. India has revenues of US$ 7.2 Billion dollars from this Industry and US$ 36 Billion from IT and BPO.

India thus has some 5-6 % share of the total BPO Industry, but a commanding 63% share of the offshore component. This 63% is a drop from the 70% offshore share that India enjoyed last year, despite the Industry growing 38% in India last year, other locations like Philippines and Eastern Europe have emerged to take a share of the market. China too is trying to grow from a very small base in this Industry. Though the Industry is expected to continue to grow in India. It's marketshare of the offshore piece is expected to reduce.