Reliance to tap into call centers

Reliance has plans to break into India's $200 million call center market

In this story: Operational by next year Foray into a booming market RELATED STORIES, SITES

By CNN's Kristie Lu Stout

BANGALORE, India (CNN) -- Indian industrial giant Reliance has plans to break into the lucrative call center business.

Reliance, buoyed by an ambition to become a telecommunication giant in the world's second most populous nation, could emerge as a major player in the Indian call center sector.

India is poised to post the highest growth rate in Asia's call center services market from 2000 to 2005, according to recent research by the International Data Corporation (IDC).

Operational by next year

The Reliance call centers will be located in 10 cities throughout India including Mumbai, Bangalore and Hyderabad.

Sources familiar with the progress of the project told India's Economic Times that the call centers would be operational next year.

"We would occupy all price points in the call center business ranging from $4 per hour work to $80 per hour, though our emphasis would clearly be on the high revenue segments," sources told the Economic Times.

High revenue segments of Reliance's call center scheme would comprise such services as the installation of DSL lines.

Foray into a booming market

The call center plan is expected to become a key element of Reliance's Infocom arm.

Reliance Infocom is leading the group's IT ventures by laying a broadband network in 115 towns and cities throughout India.

Reliance owns 45 percent of Reliance Infocom, a venture analysts value between $3 billion and $4 billion.

The foray into call centers could make Reliance a major player in what is a booming sector.

According to IDC, the $200 million Indian call center market is expected to have a compound annual growth rate (CAGR) of over 40 percent over the next five years to cross $1 billion.

The report also predicts that India would top number-one Australia by 2005 to become the largest call center market in the region.

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