After establishing itself as a major player in the international business process outsourcing (BPO) market, India is now set to shift focus on the domestic market, which is projected to grow at over 30 per cent annually.
According to a report by IT research firm IDC India, the country's domestic BPO market, with nearly 500 players, will grow at a Compound Annual Growth Rate (CAGR) of 33.3 per cent to touch revenues of $6.82 billion by 2013, up from $1.62 billion in 2008.
The report said the domestic BPO industry would evolve from just running isolated processes for customers to engaging more deeply in identifying and transforming core business processes. "Positive market indicators of an economic recovery, unbundling of mega outsourcing deals and large unaddressed white spaces such as regional language services support the current optimism," the report said.
Currently, the Banking, Financial Services and Insurance (BFSI) vertical contributes the lion's share of 37 per cent to the domestic sector's revenues, while telecom contributes about one-fourth to it. Other verticals like utilities and services, energy, food and hospitality, aerospace and automotives, consumer durables and government contribute 17 per cent, while the travel segment contributes 8 per cent to the revenue.
