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Gartner forecasts India’s revenue from domestic BPO services will reach US$1.6 billion in roughly four years. Based on the industry’s growth percentage in 2009 and 2010, it will reach US$683 million this year, from last year’s US$521 million, and will maintain its growth rate until 2014.

According to the report, high economic growth, competitive pressure, agility, time to market, innovation and adoption across verticals and breadth of services will be driving the high growth rate in domestic BPO.

Arup Roy, senior research analyst at Gartner, shares, “IT services spending will continue to shift from discrete spending to outsourcing in 2010. New avenues of growth will open in the mid-market and in up-selling. The entry of new hybrid providers will blur the lines between product and IT services and the new offerings will be on a pay-per-use model.”

Also from the report, it is possible that verticals such as government, healthcare, retail, and utilities will soon take advantage of business process outsourcing services. Similar to the banking, finance, and telecommunications industries, said verticals also involve a great amount of transaction processing, which can be outsourced.

Majority of India’s domestic market is still made up of voice-based services, but BPO is on the rise. When more industries take advantage of BPO, the service lines within the sector will certainly grow.