Domestic BPO revenue to touch $1 b in 2014

Domestic BPO revenue  to touch $1 b in 2014

Gartner has forecast that revenue from BPO services within the domestic market will grow by 31.1 per cent from $521 million in 2009 to reach $683 million in 2010 and experience steady growth through 2014 to touch $1.6 billion by 2014.

“High economic growth, competitive pressure, agility, time to market, innovation and adoption across verticals and breadth of services will be driving this high growth rate in this segment,” the report stated. Large scale outsourcing of process management will bring in the next wave of growth in the Indian domestic IT/IT- enabled services industry.

“IT services spending will continue to shift from discrete spending to outsourcing in 2010. New avenues of growth will open in the mid-market and in up-selling,” Gartner Senior Research Analyst Arup Roy said. “The entry of new hybrid providers will blur the lines between product and IT services and the new offerings will be on a pay-per-use model,” he added.

While BPO services are at present largely restricted to the telecommunications and banking and financial services sectors, going ahead, it is likely to be adopted in verticals such as government, utilities, healthcare and retail, the Gartner report said. “These are high growth verticals with a high degree of transaction processing work requirement. Such transactional processes, although crucial, are not core to the activities of those organisations. Hence, outsourcing of such processes to third party specialists would bring in advantages of efficiency, efficacy and cost, thereby increasing the competitive edge,” it added.

“Most of the BPO work is around contact centre type of work catering to customer care and sales/marketing services. This would comprise almost 65-70 per cent of the market,” Roy said. “This is likely to expand into other services such as HR process, finance and accounting, analytics etc,” Roy added.

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