Telecom BPO revenue to touch $2 Billion in 2012
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Telecom BPO revenue to touch $2 Billion in 2012

By SiliconIndia   |   Thursday, 28 May 2009, 11:32 Hrs   |    9 Comments
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Telecom BPO revenue to touch $2 Billion in 2012
Bangalore: The outsourcing revenues from the telecom sector in India are set to grow at a CAGR of 31 percent to nearly $2 billion in 2012, says a report by Ernst & Young in a first of a kind study on potential of domestic BPO industry. The telecom industry has been growing fast in spite of recession adding around 10 million subscribers every month with a subscriber base of 375 million in 2008-09.

In 2005, Bharti Airtel, which has been growing at a Compound Annual Growth Rate [CAGR] of 41 percent in last two years, started the trend of outsourcing its call center to other global companies like Mphasis, IBM Daksh, Teletech and HTMT at $272.2 million. Since then there is pressure on other telecom providers to do the same. "This domain (telecom) has already witnessed a couple of large outsourcing deals in recent months and the trend is expected to continue," said Ernst & Young partner Milan Sheth. In 2008, Telecom revenues added upto 50 percent of the domestic BPO revenues at $661 million.

BPO is also a huge job creator for telecom industry. According to the study, in 2008 telecom BPO hired over 1,22,440 people and by 2012 this number is expected to double. Banking is the second biggest employment generator for domestic BPOs. The banking sector employed around 70,100 people in 2008 and by 2012 this is projected to go up to 2,25,900. The two sectors contribute 80 percent of the domestic BPO revenues and is expected that revenues will reach $6 billion by 2012.

According to the report the key driver for BPOs in telecom is demand for customer care and sales and marketing services.

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Reader's comments(9)
1: Ya....this is absolutely true that, figure is going to double by 2012 becuase if u see, the BPO employee education level, they are simply non technical graduate or 12th std,that may be the caused by thier financial position, becuase now a days if u see, whoever has resources, they are going for technical education or something different ,and all technical people or with differently educated people will not go for BPO jobs, as i beleive And in our country we know the situation of such kind of education system,it is too expensive for normal people
"Aam Aadmi", now it is not for normal people. This is my openion, it may differ man to man.Obviously, such kind of situation is going to increase related to education, so it may lead the BPO jobs.
Posted by:Hirdesh K - 31 May, 2009
2: on what basis it has been said that BPO revenue will touch$2billion by 2012.b'coz now most of the BPO s are getting closed.
Posted by:Doray Jagan - 31 May, 2009
3: Explain About Call center Growth
& Futures
Posted by:Ravi Hiwrale - 29 May, 2009
Telecom has been performing for our those people who dont know about corporate as well as Industries
Raviraj B. Hiwrale Replied to: Ravi Hiwrale - 29 May, 2009
5: y,Telecom has been doing well as an industry.
Posted by:chiranjeevi gudisi - 28 May, 2009
Telecom has been doing well as an industry reliance company .
Manish kumar Replied to: chiranjeevi gudisi - 29 May, 2009
7: ya, its been true that telecom as made the life so easy to the people, after all India is a Developing Country and here is huge potential market for the products.

As reforms are quite competitive, man-powerare cheep, as comperiable to U.S.,U.K.,JAPAN ETC.
Posted by:SACHIN - 28 May, 2009
8: Telecom has been doing well as an industry for some time now
Posted by:anandita rao - 28 May, 2009
9: The telecom sector in India is definitely booming, especially with newer technologies like number portability expected soon, the numbers could go up further.
Posted by:Govind - 28 May, 2009