India’s BPO Market To Grow 23%
May 2, 2011
Consultant firm, Gartner has said that the Indian domestic bpo outsourcing market is supposed to grow 23% to $1.4 billion in 2011. In comparison, the figures for the bpo market in India tagged at $1.1 billion.
T.J. Singh, Gartner’s Research Director was speaking to the Press Trust of India when he said that the bpo segment is supposed to see exceptionally good growth especially in the telecom sector. The rate of 23% is assumed to be a relatively good rate of growth. He added that the BPO models that are already established in India is likely to see an expansion to other areas.
The growth in 2010 was large due to pent up demand that was stalled by the recession. It also included some increase in BPO contracts, the linkpaper.ca reported.
By the year 2012, the figure for India’s domestic bpo market is expected to climb to $1.69 billion, while the figure is still expected to rise to $2.5 billion in the next three years or so, reports the global research firm Gartner.
In comparison, the bpo domestic outsourcing figure was $888.6 million two years ago. In general, the outsourcing scenario on the domestic front seems to be picking up post recession.
In addition to Indian majors, European and U.S. outsourcers are also concentrating on the domestic Indian bpo market. Gartners outlines the local firms as Omnia, Androemeda, Magus, Genpact, Kenkei, Spanco, HTMT, Tech Mahindra, Aegis, MphasiS, and International Global Services.
Singh continued to say that although there was a strong focus on the international market, the fact that India’s domestic bpo segment has shown good growth during the recession phase is good indication that it will continue to grow. And foreign firms are now looking into the Indian domestic outsourcing landscape.
Moreover, the large and midsized outsourcing firms are now stepping up their play in India. There is also an increasing demand for shared services in the Asia Pacific region