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Ebix banks on Indian boom

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Software supplier Ebix is to expand its Indian workforce amid a boom in the business process outsourcing (BPO) sector.

The US company has bought extra office space in New Delhi as it looks to double its 1100-strong staff in India in the next few years. It also has operations in Nagpur in central India and Chennai, the country’s fourth-largest city.

All Ebix’s software work in the new buildings will be tax exempt until mid-2018, under an Indian Government policy to promote the IT and BPO sectors. In the past decade India’s BPO industry has grown 1600% – taking it past Canada and the Philippines to be the world leader.

India’s National Association of Software and Services Companies says that in 2008 the country’s revenues from offshore BPO and IT were $US40.9 billion ($39.9 billion), with nearly $US11 billion ($10.7 billion) from BPO.

While India has only a 5% stake in the global BPO industry, it commands a 63% share of the offshore component.

Ebix recently announced a 10% drop in second-half profit, to $US33.75 million ($31.97 million), plus the acquisition of UK-based TriSystems, an online insurance trading hub that allows commercial insurance and reinsurance transactions between London intermediaries and insurers.