The BPO industry in India is growing at a breathtaking speed. The growth rate has surpassed that of the IT services industry during its hey days in 1999 – 2001. The Indian BPO sector’s size in 2008 is predicated to be anywhere between $30 billion to $50 billion by various research firms that are tracking the industry. The number of BPO companies in Indian cities has mushroomed from a handful a few years ago to about 500 in 2004. Venture capitalists (VCs) are setting up their offices in India to identify who might be the winners 5 years from now, and are investing in those companies. VCs who had invested in the BPO sector a couple of years ago are urging their portfolio companies to merge or get acquired in order to fuel the growth, and allow them a profitable exit from these companies.
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