WebEx Comm bets big on India

Encouraged by India's emergence as the prime offshore location, WebEx Communication Inc, the world's leading provider of web communications services, has said that it will offer nearly 20 per cent of its service capabilities out of India to its world wide customers by the end of this year.

Following its recent acquisition of Bangalore-based CyberBazaar at a cost of $5 million, WebEx, today announced that it has extended its MediaTone Network throughout India. This would enable domestic companies to use web communications services to collaborate with customers in a cost effective way.

MediaTone is a combination of software and communication infrastructure that will use WebEx's leased lines to help more customers communicate simultaneously. Worldwide, WebEx commands a 67 per cent marketshare in web communications business. Microsoft is a distant second competitor with about 17 per cent marketshare.

According to Subrah Iyar, chief executive officer, WebEx Communications, "We would look to outsource our offshoring capabilities out of India to the extent of 20 per cent by the end of this year. In the next 3-4 years, we anticipate this to increase to nearly 50 per cent."

Buoyed by its customers preferring India as the ultimate offshore location, Iyar feels much of this growth would come from this sector.

However, he added that emerging sectors such as pharma and engineering will also play a key role in contributing to WebEx's business. "We intend to touch $1 billion mark within the next 3-4 years. During then, we expect international markets to contribute 35 per cent to our revenues. In terms of usage, India is expected to contribute for 20 per cent from the current 5 per cent," Iyar added.

Today, WebEx attributes nearly 10 per cent of its traffic in India to come from outsourcing companies. This traffic is mainly directed towards US and Europe. As the company expects to provide more collaborative real-time web communication solutions with the help of MediaTone, the contribution from outsourcing companies is also expected to increase accordingly.