The Indian BPO industry is expected to grow 33% by 2008-09 as it remained ‘fundamentally sound’ during the economic slowdown in the US and decline in rupee, says NASSCOM.
The representative body of the Indian IT and Business Process Outsourcing (BPO) industry, NASSCOM (National Association of Software and Service Companies), reported that despite a slowdown in the US economy and decline in value of rupee vis-à-vis the dollar, the BPO industry of India will continue to remain ‘fundamentally sound’ and is expected to grow at 33% during 2008-09, reported The Hindu.
At present, the global BPO industry in India stands at about $ 26-29 Billion and has swelled at around 35% over the past couple of years. NASSCOM forecasts that the IT-BPO sector is likely to reach about $73-$75 Billion in 2010 from around $64 Billion in 2007-08. Also, the BPO industry in the country provided employment to nearly 20 Million people directly and about 8 Million people indirectly, respectively.
The attention drawn by the BPO industry for its rapid growth over that last decade is recognized as one of the major factors for the expected growth in the market. Also, due to its approach, the BPO industry achieved maturity at a fast pace and thus, provides large growth opportunities.
In India, most of the metro cities, such as Kolkata, Chennai, Bangalore, Pune, National Capital Region (NCR), Mumbai and Hyderabad, are the major centers of the BPO industry, but now the industry is shifting to rural areas and small towns that will open up new growth opportunities to the Indian BPO industry.
Moreover, the fear of different kinds of blockage, mainly the infrastructure, which is expected to impose huge costs on BPO industry due to decline in margins, is forcing the industry to shift to rural areas. Also, when the industry turns inside, it is likely to have some developed markets such as retail, banking and telecom as domestic opportunities.
According to a Research Analyst at RNCOS, “Although North America is the largest BPO market for India, but there are many outsourcing opportunities available in the UK, Asia-Pacific and Continental Europe. Also, the various under-penetrated industries like energy, media and telecom, together with conventional large sectors like insurance, manufacturing and banking, are providing huge growth opportunities to the BPO industry in the country.”
Related Market Research Reports:
KPO - The New Outsourcing Avenue for Indian BPO Market
