July - 2010 issue > Business

By Vimali Swamy

If the year that went by was tough, then the BPO sector is surely a witness to it. Of all the industries, the BPO sector was perhaps the most affected, especially those in the BFSI sector. But as is often said, “Every dark cloud has a silver lining;” the same is true of the BPO industry as well. As the economy grows, the future seems to have something else in waiting.

A recent study by Nasscom states that the BPO addressable market will be larger than IT by 2020. The market is likely to grow in size from $200 billion in 2010 to $ 980 billion in the next decade.

What is more interesting is that 80 per cent of the incremental growth is predicted to be driven by opportunities outside the current core markets, verticals, and customer segments.

Traditionally, the US and the UK have been the strongest markets for BPO since its evolution and they continue to be so. But what has changed is the business outlook. In the past few years the BPO sector has undergone a tremendous change in outlook. From a supply-side definition, today it has become outcome-oriented, where the payers now need to provide end-to-end processes and solutions that would boost revenues for customers.

Large market segments and buyers are now not increasingly looking at BPO in synonym with IT, where their only concern is business outcome and effectiveness. Hence, it is no wonder the BPOs are now referred to as IT-enabled services.

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