With the global economy in recession, the Indian enterprises are finally focusing on the domestic market. Domestic BPO demand has witnessed noticeable growth over the past few years. Domestic BPO market, with a growth rate of 50% over the last five years, has grown faster than the overall Indian BPO market to reach nearly $1.6 bn in FY 2008, against overall BPO revenue of around $11 bn. The potential opportunity in the domestic BPO sector is expected to be $15-20 bn by 2012 compared with $50 bn projected for the overall BPO sector. There are many growth drivers for the growth of the domestic segment. Deregulation, massive growth and entry of new players are likely to drive outsourcing among telecom operators while severe competition and widespread adoption of IT are enabling the growth in the banking sector. E-governance is also likely to fuel the growth. Reduced costs of connectivity, global aspirations of the Indian firms and the slowdown in the US economy have added to the momentum. On the flip side, the services are largely limited to low value, high volume, back office jobs and customer support activities. Building and developing specialized services and solutions that provide greater value will be a key challenge for vendors to sustain profitable growth in the long term. Customer wins during the slowdown is critical for domestic BPOs. Productivity is another important factor that contributes to the growth of BPOs. To keep productivity high no matter where people are working, communications tools need to be consistent, portable, reliable, and secure.
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