The Indian domestic market is going through a crucial transformational juncture over the last few years – rising from a 'good to have presence’ to a ‘high potential opportunity' for the country’s IT-BPO sector. Until a few years back, the domestic business opportunities did not even figure on the agenda of Indian ITES companies. However, recession in the US economy and the domestic IT/ITES sector’s resilience helped the market to earn a respectable position in the strategy roadmap of IT/ITES service providers. At a time when companies are developing strategies to tap the missed opportunities in the domestic sector, the market is witnessing intense interest from customers as well as outsourcing services providers that are not only based out of India, but are also players at a global level.

The key factors which will continue to fuel the growth of Indian BPO market are:

•According to IMF forecast, the Indian economy will continue to register a healthy GDP growth of over 8 percent for the next 5 years. To keep pace with such an exponential GDP growth across the economy, the Indian companies need to concentrate their focus on their core competencies while leaving IT/ITES in the hands of third party IT service providers.

•Another key reason driving the growth is the increasing globalization. The Indian enterprises are pursuing their dream to get global; as these companies intend to expand their presence across the world, they will need to inherit the global best practices where the ITES services will come handy for them.

•The number of service providers having end-to-end capabilities to provide outsourcing services has increased over the years. This growing number of vendors, along with increasing maturity of Indian enterprises towards benefits of availing outsourcing services, will act as a catalyst for the growth of the domestic IT market.