Indian BPO to grow 25 percent in 2010
Date: 30-Mar-2010
New Delhi: According to Gartner, the business process outsourcing (BPO)
market in India is estimated to grow 19 percent through 2013. The
domestic India BPO services market grew by 7.3 percent year on year in
2009 primarily due to the global economic uncertainty which led to some
price and volume pressures. Gartner estimates the Indian domestic BPO
market will grow into a $1.2 billion market by 2011 and grow to $1.8
billion by 2013.
"In the short term, market trends such as changing demographics and
affluence levels, consumption of value-based services, increasing focus
on service quality and the continued momentum of mergers and
acquisitions (M&As) bear watching, as their impact is certain to
influence shifts in buyer needs and behavior," said T.J. Singh,
Research Director at Gartner.
The BPO services market in Asia/Pacific and Japan consists of a mix of
multinationals, regional and local BPO and IT services providers and
telecom vendors. Changing demographics, focus on service quality and
increasing affluence in Asia/Pacific continues to drive shared services
and BPO adoption, especially in Australia, India, Southeast Asia and
China. There is also a growing demand for multi-country shared services
and BPO services within Asia/Pacific. 2009 saw significant
consolidation in the global and regional BPO market, with some large
M&A deals impacting regional BPO deals.
The Indian domestic BPO market is one of the high-growth services
segment and has now become more organized. Some local providers in the
domestic market include (in alphabetical order) Aditya Birla Minacs,
Aegis BPO, Andromeda, Firstsource, HTMT, Infovision, KPIT Infosystems,
Magus Customer Dialogue, Wipro , TCS, Tech Mahindra and, 3i-Infotech.
"In the last two years, many established Indian BPO providers and some
of the MNC service providers focusing primarily on the international
offshore services market have shifted greater focus and investments to
the Indian domestic market," said Singh. "The economic slowdown
accentuated this phenomenon. Service providers focusing solely on the
international offshore services market recognized the potential in the
Indian BPO market, which grew during the slowdown phase. The large and
midsize players have now stepped up their activities."
Posted By : Senior Correspondent
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