Bright future

Calcutta, April 12: The Indian business process outsourcing market (BPO) is expected to reach $1.4 billion in 2011.

According to a Gartner report, the market will grow to $1.69 billion by 2012 and reach $2.47 billion by 2014.

In 2010, the Indian BPO market stood at $1.14 billion, a 28.6 per cent increase from $885.6 million revenues it garnered in 2009. This was driven by increasing volumes in existing BPO engagements and a slew of deals struck in 2010.

“It is a relatively good growth rate of over 23 per cent. The domestic BPO market is expected to see increased volumes, especially in telecom,” said Gartner research director T.J. Singh.

Many India-based BPO service providers, especially those from the US and Europe, are also keen on the domestic market. Although the market is dominated by global service providers, a number of regional and niche players are making their mark.

“Changing demographics, increasing affluence and economic growth in the Asia-Pacific region continues to drive shared services and BPO adoption, especially in Australia, India, Southeast Asia and China,” Singh said.

“There is a growing demand for multi-country shared services and BPO services within Asia Pacific. Buyers continue to invest in scalable, high quality and consistent services. There was significant consolidation in the global and regional market in 2009 and 2010 with some large M&A deals impacting the regional BPO landscape.”

India is one of the fastest growing BPO markets in Asia Pacific.

The BPO services market in Asia-Pacific (excluding Japan) reached $8.6 billion in 2010, a 21.5 per cent rise over $7 billion in 2009.