The business process outsourcing (BPO) market in India will expand by 23.2 percent in 2011 to reach a size of $1.4 billion, compared to $1.1 billion a year ago, according to a study by global IT research firm Gartner.
“Changing demographics, increasing affluence and economic growth in Asia-Pacific continues to drive shared services and BPO adoption, especially in Australia, India, Southeast Asia and China,” Gartner’s research director T.J. Singh said.
“Buyers continue to invest in services that deliver scalable and consistent services across their geographical presence,” he added.
The study also forecasts that the BPO market will grow to $1.69 billion by 2012 and $2.47 billion by 2014.
According to the study, India is one of the fastest growing BPO markets in the region. However, the largest BPO country market is Australia, which is more than three times larger than India, the second-largest consumer of BPO services.
Banking and financial services, communications, government (both local and federal), technology and travel and transportation have been largest consumers of BPO services in the region.
Over the past three years, many established India-based BPO service providers and US and Europe-based multinational BPO service providers have started focusing on the Indian domestic market.
In the past, these providers focused primarily on the international or offshore market.
Some of the local providers include Omnia, Kenkei, Androemeda, Genpact, Magus, MphasiS, Intelenet Global Services, Tech Mahindra, Aegis, Spanco and HTMT.