Monday, November 07, 2005

High End is High Paying

Financial Express today carries an article titled, Indian BPOs fight US court battles. Among the usual numbers and names are some interesting and exciting findings, some that will make more investors and entrepreneurs to think about setting an LPO shop in India.

Just 700 people [in the LPO space in India presently], employed across 50-60 companies in the country command up to $125 per hour to generate business worth $70 million per annum. That's higher than the 2004 revenues of $60.5 million generated by EXLServices, one of the largest BPOs in India employing 5000 people.
In fact, for the sector, legal outsourcing is one of the most lucrative businesses. At an average billing rate of $75 per hour, just 700 LPO employees generate a business of $420,000 (Rs 1.8 crore) every day.
And of course the higher billing rate to the clients does translate into higher remuneration (may not be a directly propotionate number).

It's well paying too. Sanjay Kamlani, Co-CEO, Pangea3 told FE: "Lawyers can earn between Rs 1-10 lakh per annum. Engineers, medical practitioners and PhDs are in great demand as they are required for filing patents related to their fields. They earn between Rs 4-8 lakhs per annum depending upon experience." Outsourcing legal work to India helps US law firms operate 24x7. Not to forget the cost savings. Said Ashish Gupta, country manager, Evalueserve: "Drafting a patent in US costs around $8-10,000. In India, it can be done at less than half the cost. There is huge market potential as more than 300,000 patent applications are filed in the US every year."