Domestic BPO market to grow 60% in FY-06
By agencies   |   Wednesday, 18 January 2006, 20:30 IST
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NEW DELHI: The domestic BPO market is now set to take off in a big way. For the current financial year it is expected to grow by 60 percent to touch about $954.54 million. Announcing this, Nasscom’s Vice-President, Sunil Mehta said, “The domestic BPO business is expected to grow at 60 percent to clock $954.54 million during 2005-06 compared to $600 million in 2004-05. As much as 60 percent of this would be from call center work. Other activities include HR and finance and accounting operations.” The domestic BPO business is expected to employ close to 50,000 people in 2005-06, he said. In terms of revenues, the market had grown 85 percent in 2004-05, from $323.86 million in the previous year. He said, “Enterprises have begun to realize that the call center work is not their core competence and that it is easier and more efficient to outsource this work. Moreover, the growth of exports have helped BPO and call center companies to attain economies of scale and understand business.” Although the domestic pie is still miniscule compared to massive BPO exports of $7.3 billion estimated for 2005-06, the high rate of growth back home combined with lucrative deals — such as the one announced by Bharti last year — is prompting players to actively look at the domestic opportunities. In August 2005, telecom major Bharti had announced a $227.27 million deal with four BPO companies to outsource its call center operations for the next four-five years. The deal signed with IBM Daksh, MphasiS, TeleTech and Hinduja TMT envisaged setting up contact centers in each of the four zones of the country.

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