Gartner predicts 19% growth for Indian BPO market by 2013
Technology business research and business process outsourcing (BPO) advisory firm Gartner has predicted 19% growth for the domestic BPO market in India by 2013. According to Gartner, the Indian BPO market is expected to develop into a $1.2 billion market by 2011 and gradually escalate to $1.8 billion by 2013.
In fact, the growth of the domestic Indian BPO market has been slow during 2009, as it only expanded by 7.3% largely owing to the recent global economic slum that had resulted in price as well as volume anxieties. Despite this, the BPO market in India is among the highly escalating services section and has presently happened to be more systematized. In fact, a number of Indian BPO service providers like TCS, Infosys, Wipro, Aditya Birla Minacs, Firstsource, Aegis BPO, Tech Mahindra, Andromeda, HTMT, Magus Customer Dialogue, Infovision, and 3i-Infotech have expanded in a significant manner during the last few years with a view to meet the challenges of their much stronger global rivals.
Quoting Gartner research director T. J. Singh, a news website reports that in the interim basis, it is important to observe the market leanings, including shifting demographics and degree of prosperity, expenditure on enhanced facilities as well as the sustained pace of mergers and acquisitions since their bearing will definitely manipulate the swings in the buyers’ requirements and actions.
An Indian business daily quoted Singh as saying that presently, the Asia/Pacific and Japanese BPO services market comprises a blend of multinationals, regional and local IT and BPO service providing firms as well as telecom suppliers. He further said that during the past couple of years, the concentration and also investments of numerous reputable Indian BPO service providers and a number of the global business service providers have largely moved from the global offshore BPO services market to the BPO market in India. According to the Gartner research director, the recent economic recession has only heightened this trend. In addition, clients are also increasingly insisting on multi-nation shared facilities and BPO services in the Asia/Pacific region. Moreover, during 2009 fiscal, the BPO industry witnessed noteworthy mergers in the international as well as the regional BPO market and a number big merger and acquisition arrangements also had a bearing on the regional BPO agreements, Singh pointed out.