Witnessing significant increase in capacity, the number of seats in Indian ITeS-BPO space is projected to increase to 210,000 in March 2004 from 140,000 in March 2003, according to Nasscom.

The number of seats has increased from 140,000 at the end of March 2003 to a projected 210,000 in March 2004, according to Nasscom's 'Strategic Review 2004'.

Most of this increase has been from Indian vendors and captive units. The share of captive units is between 65-70 per cent and is expected to grow even further.

The report also mentioned about the hectic M&A activities in the Indian ITeS-BPO space in recent years resulting in further consolidation.

As many as 12 merger and acquisition deals happened recently involving Indian and foreign companies, according to Nasscom.

Quintant Services was acquired by iGate from the GMR group for a stake of 64.1 per cent at a deal price of $19.9 million, while Zensar Technologies bought 50 per cent stake in Suntech Data Systems from its promoters for an undisclosed amount, the review said.

Chennai based Polaris Software bought ibackOffice from Global Technology Ventures while the stake and the deal size were not known and IT&T was sold to Mascot Systems where one division acquired for Rs 21 crore (Rs 210 million) and the stake involved was not disclosed.

TransWorks was sold by Chrysalis Capital and promoters to Indian Rayon which bought 100 per cent stake at a cost of $13 million.