BTO industry to be USD 680 billion by 2008-09

Kolkata, May 21: The market potential of the Business Transformation Outsourcing (BTO) industry is expected to be around USD 680 billion by 2008-09 and grow at the rate of five per cent, according to a ASSOCHAM study.

The study said the percentage of BTO services in the outsourcing spectrum was expected to increase from 19 per cent in 2004 to 31 per cent by 2009.

While, West Bengal is considered as one of the favourite IT destinations in the country Kolkata is almost at one of the last rungs of the potential Business Transformation Outsourcing (BTO) ladder, it said.

The study entitled " Business Transformation Outsourcing (BTO): Third Generation Outsourcing," was conducted by Associated Chamber of Commerce and Industry of India recently.

However, cities like Bangalore and Gurgaon have ranked as the most favourite BTO destinations, followed by Delhi, Chennai and Mumbai.

Kolkata has been placed at the sixth position followed by Pune in the seventh rank.

However, the industry gains popularity it was poised to grow at 10 per cent per annum.

The study said as the BTO industry was a normal extension of the BPO industry.

However, the study also pointed out that those cities that were already a BPO hub were most likely to be placed in the top rungs of the ladder.

Availability of quality infrastructure, talent pool, geographic location, local climate and tax benefits available from the local government were the main factors which a BTO layer looks for while setting up its base in a city.

UNI