Thursday, August 11, 2005

Online ads in US to boost Indian BPO

The growth of online advertising in the United States is opening up new avenues for Indian business process outsourcing (BPO)companies.

While a couple of companies are already on the gaining end by capturing a little bit of online advertising business in the US, others are trying to make forays.
According to industry sources, out of $300 billion advertising market in US, online advertising now comes to a little over eight per cent but is poised for a big growth.

A number of US companies prefer to outsource all back-end tracking to Indian subsidiaries opened specifically for this purpose.
"As it is possible to estimate returns on investment in online advertising, the US companies are now switching over to online advertising. It is here where the avenue for a niche business exists",
Venkat S Meenavalli, managing director of Northgate BPO Services Ltd said.

Northgate, which forayed into the segment by setting a wholly-owned subsidiary Axill Inc in the US last fiscal, could achieve more than 500 per cent growth driven by its online advertising business in the US.

- from Rediff News -