BPO mkt to touch $ 6.82 bn by 2013.

THE dip in business from Western markets has regenerated the interest of business process outsourcing ( BPO) industry in the domestic market, according to report by research firm IDC. The country's domestic BPO market, with nearly 500 players, will grow at a compound annual growth rate ( CAGR) of 33.3 per cent to touch revenues of $ 6.82 billion by 2013, up from $ 1.62 billion in 2008, the report says.

According to it, the domestic BPO industry would evolve from just running isolated processes to engaging more deeply in identifying and transforming core processes. Positive indicators of an economic recovery, mega deals and large untouched white spaces such as regional language services support this optimism, the report said.

Currently, the BFSI ( banking, financial services and insurance) vertical contributes the lion's share of 37 per cent to the domestic sector's revenues, while telecom contributes about one- fourth to it. " The domestic BPO market shows promise of growth, especially in verticals like BFSI and telecom in the short term," said Arpan Gupta, lead analyst, IDC India.

However, it is non- English BPOs in Tier- II & Tier- III cities that can provide services to the telecom and aviation sectors at a lower cost and expected to play a big role, it said.

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