India’s Domestic BPO Market will arise USD 6.82 billion by 2013
India’s Domestic BPO Market will arise USD 6.82 billion by 2013 – After setting off as a leading player in the international BPO arena, now India will focus on the domestic market i.e. casted to arise at over 30% annually. As per a report stated by IT research company IDC India, the country’s domestic BPO market having approx. 500 role players, will arise at a CAGR of 33.3% to touch revenues of USD 6.82 billion by year 2013, up from USD 1.62 billion in year 2008.
The report clarified more that the domestic BPO industry would evolve from just running isolated processes for customers to enlisting more identifying and transforming core business processes. It also commenced, “Positive market indicators of an economic recovery, unbundling of mega outsourcing deals and large unaddressed white spaces such as regional language services support the current optimism.”
IDC India disclosed that the industry would acquire more into third party transformational outsourcing relationships from the current captive dominated market structure. Currently, the industry is proffering a vast range of services from customer care to research.
For other verticals and services like companies belonging to auto, food, consumer durables and aerospace, government has been bestowing 17% to the revenues and travel trade segment has been contributing 8%.
The senior analyst at IDC India, Mr. Arpan Gupta said, “The domestic business process outsourcing (BPO) market shows promise of growth, especially in such verticals like banking, financial services and insurance segment and telecom in the short term.” He added by saying, “The concern areas for the industry that services overseas customers — such as rupee-dollar volatility, rising infrastructure costs in Tier-I cities, over-dependence on North American and European markets — are expected to have minimal impact on the domestic sector.”
Once, few mega outsourcing deals come and role players begin proffering more services in regional languages, it is for sure that the industry will be able to attain growth target over $6.8 billion in next 5 years. Though, more concerning factor is higher training costs and lack of availibility of a proper talent pool for role players.
The voice processes in the domestic BPO market add 55% to the entire domestic revenues while non voice market fulfills the rest. According to senior analyst of IDC India, “As the industry enhances focus on Human Resource Outsourcing (HRO), Legal Process Outsourcing (LPO), billing and high-end analytics, the BPO market would see a gradual shift from Voice processes to non-Voice processes.”
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