Incentives for ITES/BPO

With the right incentives and stimulus, the ITES-BPO industry is expected to create 16,000 jobs at the end of year 5 assuming an average growth, 20,000 jobs at a high growth. Post the initial 5 years of investment and building the sector, the BPO sector will grow at the natural rate of progression. It is estimated that the BPO industry will grow at a healthy 3-4% in the average scenario and 7% in the aggressive scenario.  The job growth projections are shown in the below graph:
Based on the above job growth projections and estimated revenue per employee, the revenue projections for the industry is given below:

The following are the proposed incentives for the ITES/BPO industry:
i.    Last mile connectivity incentive
ii.    BPO software support incentive
iii.    Bandwidth bulk purchase discount benefit
iv.    Real estate subsidies
v.    Power cost downtime compensation
vi.    Medium and long term fiscal incentives

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