The industry expected to expand considerably, India remains the world hub for the business process outsourcing. The Business Process Outsourcing Market in India, it will grow by 23.2 percent in 2011 to reach a size of $1.4 billion compared to $1.1 billion. The India has already overtaken China as a Business Process Outsourcing market and it is likely to stay ahead in 2014 when its domestic Business Process Outsourcing market is forecast to $2.47 billion. The Chinese Business Process Outsourcing market in contrast is likely to grow to $1.6 billion by 2014. By the global Information Technology research firm, the study shows that the market overview, that the Business Process Outsourcing Service Providers in the country Marketplaces in Asia-Pacific and Japan found that India remains one of the fastest growing Business Process Outsourcing markets in the region.
Australia and Japan are still ahead of India in the Asia-Pacific region, the Business Process Outsourcing services market in Asia-Pacific hit the $8.6 billion revenue mark in 2010 a 21.5 percent increase from the 2009 figure of $7 billion. The banking and the financial services, communication, government, technology and the travel and transportation have been the largest consumers of the Business Process Outsourcing services in the region. The significant trend in India has been to look more closely at the domestic market which has so far played a second fiddle to the high-profit markets abroad.
The Indian outsourcers such as Wipro, Infosys Technologies and the Tata Consultancy Services who have built the businesses around delivering Information Technology and Business Process Outsourcing services to the customers in the US and Europe are increasingly focusing on India as a market. Their Indian revenues is still a lot smaller than their overseas revenue. The service providers who were focusing on the international market realized that there was an opportunity in the Indian Business Process Outsourcing market which grew rapidly even during the global economic crisis. The multinational companies aided that sometimes by the local acquisitions are also focusing on India as a market for both Information Technology and Business Process Outsourcing services. The companies such as IBM are dominant in the Indian Information Technology services market because they focused on the Indian market ahead of their Indian competitors. The Business Process Outsourcing market in India also has a number of local players like Aegis and Hinduja TMT.
The outsourcers targeting the Indian market that will have to look at a low cost options such as employing staff in a small towns and villages. They are also have to explore alternative revenue models to attract customers. The number of the companies are delivering Business Process Outsourcing services from small towns and the rural areas in order to offer the lower cost services to Indian customers and to the counter the high staff attrition in the larger cities.
REFERENCE:
http://www.indiaincorporated.com/news-archive/item/155-indian-outsourcing-industry-set-for-a-new-wave-of-growth.html
