Domestic BPO revenues to go Sky-high

By SiliconIndia   |   Tuesday, 29 July 2008, 12:33 Hrs
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Mumbai: Employment opportunities for back office services is set to a four-fold rise by 2012, as the Indian domestic firms' revenue soars. Valuentos Database, a research firm in Pune, has unfolded the statistics of the domestic business process outsourcing (BPO) firms in the next four years, thus projecting a rise in the revenues to 22, 800 crore and hence resulting in 5.4 lakh employments as against the current 1.4 lakh employees.

The companies are also expected to create enormous job opportunities in the semi-urban regions of the country. In fact, the impetus of these firms circle around providing better customer services, productivity enhancement and marketing time reduction. Moreover, even the third party firms will have their turn of benefits, as the research predicts an annual revenue growth rate of 44 percent by 2012, which shall amount to 7, 700 crore. Neeraja Kandala, Senior Analyst, Valuenotes told Economic Times, "Since a lot of the back office work ought to be done in regional languages, BPO firms will be keen to set up shop in tier-II and tier-III cities."

Nearly three-fourths of the total revenue of the third party firms includes revenues from telecom and banking, financial services and insurance. While margins in international BPO business could be anywhere between 15 and 20 percent, it is on the lower side- between 10 and 12 percent for domestic operations. However, the sheer size of the opportunity has prompted companies such as Genpact, Infosys and many others to seriously commit time and capital to this space.

The current revenue of the domestic BPO firms is 6, 900 crore in fiscal 2008 and that of the third party vendors is 1, 800 crore.

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