The Hindu Business Line : Domestic BPO market to be $6.82 b by 2013

New Delhi, Nov. 13 The domestic BPO market, with nearly 500 players, is expected to grow at a compounded annual growth rate of 33.3 per cent to touch revenues of $6.82 billion by 2013.

This is against $1.62 billion recorded in 2008, according to IDC. The report by IDC India pointed out that the industry would evolve into third-party ‘transformational outsourcing’ relationships from the existing captive-dominated structure.

“This implies that rather than merely running isolated processes for customers, BPOs would engage more deeply to identify and transform core business processes to add greater value in creation and delivery of end-products and services.”

The current offerings range from customer care to research and analytics. The BFSI vertical contributes the lion’s share of 37 per cent to revenues, followed by telecom (25 per cent).

Positive market indicators of an economic recovery, unbundling of mega outsourcing deals and large unaddressed white spaces such as regional language services are supporting the current optimism that the domestic industry will achieve the projected growth target over the next five years, it said. All the major verticals are expected to continue to grow over the period.

Shift in trends

“However, it is non-English BPOs in Tier-II and Tier-III centres (which can provide services to the telecom and aviation sectors at a lower overall cost) that are expected to play an increasing role in the growth of domestic outsourcing industry,” said the study.

Currently, such sub-regional/local BPOs are estimated to have capabilities to offer services in 10-15 Indian languages.

Another change will be the shift from voice-based processes to non-voice processes. Voice processes in the domestic BPO market contribute 55 per cent to the overall revenues, at present.

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