India’s second largest software firm, Infosys Technologies could potentially overtake information technology (IT) services in overall revenue. Infosys BPO currently contributes to around 5 percent of the firm’s total revenue, said Chief Executive S. Gopalakrishnan. “If you take BPO (business process outsourcing) alone, it can be even bigger than IT services because that addresses something like 15-20 percent of spend for our client organization, whereas IT typically addresses 2-5 percent of expenditure for our clients,” reports Surabhi Agarwal & K. Raghu from The Mint.

Ritesh M. Idnani, a member of Infosys BPO’s Executive Council and its chief operating officer said that Infosys BPO is aiming to quadruple its revenue to $1 billion (Rs4,730 crore) in three years, riding a rebound in demand for outsourcing. For the financial year 2009-10, it reported a revenue of Rs1,127 crore while Infosys Technologies’ turnover was Rs22,742 crore.

A significant growth is possible in infrastructure management and systems integration, which now contribute only 7-8 percent of the total revenue. While Infosys BPO continue to target verticals such as finance and accounting and human resource outsourcing– low-hanging fruits for the industry Idnani said there is a new focus around areas such as warranty support and digital commerce. Around 50 percent of the company’s deal pipeline still comprises of finance and accounting-related contracts. (more…)