The business process outsourcing (BPO) market in India is estimated to grow 25% in 2010 and a bit lower at 19% in 2013, according to the Research firm Gartner.
The research further provides insight that the domestic BPO services market grew by 7.3% in 2009 on the back of global economic crisis, especially, the developed markets of U.S. and other western economies which largely outsource its business related operations from low-cost Indian BPO industry.
A firm 25% growth estimates for 2010 reinforces the confidence of global corporations in India, despite a one-off occasion of Satyam Computers fiasco in the midst of the global recession. Fortunately, the BPO industry has come out unscathed from the Satyam fraud instance.
Though the margins have relatively dropped from the pre-crisis period, the recent revival in the world outsourcing market is a sign that the Indian BPO industry is poised for broad based growth across industry and service lines.
The global outsourcing industry, on the back of global recovery since last one year, will move on to reaffirm India’s leadership position as the primary outsourcing location for business process related services. The global technology spending forecasts remain strong, supported by a spurt in recovery in emerging markets including the Asia Pacific countries.
Gartner estimates the Indian BPO industry to grow into a $1.2 billion market by 2011 and $1.8 billion by 2013. The research firm says that there is a growing demand for multi-country shared services and BPO services within Asia Pacific.
According to T J Singh, the research director of Gartner, “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.”
Contents
Large Market Presence (Revenue Greater Than 8 Billion Rupees)
- IBM
Midsize Market Presence (Revenue Between 495 Million Rupees and 1.35 Billion Rupees)
- 3i-Infotech
- Firstsource
- Perot Systems
- Sitel
- Wipro
Small Market Presence (Revenue Between 105 Million Rupees and 365 Million Rupees)
- Aditya Birla Minacs
- Alcatel-Lucent
- Amdocs
- ADP
- First Data
- HP
- SunGard Data Systems
- Tata Consultancy Services
- Tech Mahindra
Note: Service providers are listed alphabetically within each segment.Source: Gartner (December 2009)
More so, after witnessing the sharp recession in the Banking, Financial Services and Insurance (BFSI) space, the BPO industry have diversified their operation to other emerging sectors like Retail, Telecom, Healthcare, and Media among other fields to ensure continuity of operations without any recessionary hiccups.
The times of offering plain-vanilla call operations are left behind and customers need to be offered competitive and value-enhanced end-to-end solutions including non-voice operations with customized services.
How optimistic are you about Indian BPO industry?