Th Domtc BPO Markt ida:scorg a Hom R!
The Indian domestic market has undergone atransormation over the past decade – rising romthe periphery to emerge as a viable, high potentialopportunity or the country’s IT-BPO sector. From asituation where the domestic business did not fgureon the industry’s agenda, to now, when companiesare evolving strategies targeted at building a presencein the domestic sector, the market has witnessedheightened interest rom customers, as well asoutsourcing services providers at a global level. Ithas also emerged as a silver lining or companies intoday’s changing markets especially against globaleconomic uncertainties.As per NASSCOM’s analysis, the domestic market sawa growth o 40 per cent (26 per cent in INR) in FY2008to clock revenues o USD 11.6 billion. With 450,000employees currently, FY2009 estimates peg thedomestic market ~ USD 13 billion, backed by a stronggrowth prospect, with sustained ination as a possiblemedium-term risk.Domestic BPO has emerged as a major segment inthis pie. As Rajdeep Sahrawat, VP, NASSCOM says, “Itwas predominantly voice, but other complex processeshave been added, with more in the pipeline.” He alsoeels, “there is very little to dierentiate companiesrom the product point o view and thereore oeringvery high quality, personalised, 24x7 customer serviceis critical. This requires scale, exibility and expertise”.Domestic players have certain advantages, starting withareas like cost management and efciencies, deeperunderstanding o Indian businesses, requirementsand greater exibility. The market in its current growthphase will always need niche mid-sized quality players.In this space, since English language skills are notimperative, the market becomes relatively larger,spanning Tier-2 and 3 cities as well.The reasons or this recent turnaround are relatedto the changing global market conditions, however,the Indian market is slightly insulated to thesedisruptions, displaying a growth rate o 26-27 per centin FY2008. Recent outsorucing deals in the verticalslike banking, insurance, airlines and telecom alsosupport this trend.Globalisation is a actor spurring organisations toimprove efciencies and utilisation – the credit orboth these go to the BPO industry. “As the Indianeconomy becomes globally integrated, businesses inIndia are beginning to ace increasing levels o globalcompetition and being driven to deliver world-classproducts and services. The BPO sector has emergedas an eective means o entrusting specialistswith the task o consistently delivering the desiredhigh levels o quality, leaving the client organisationsto ocus on their core businesses,” comments RadhikaBalasubramanian, COO, Domestic BPO Operations,Intelenet Global Services.Intelenet was quick to recognise the growing potentialo the domestic BPO segment and was one o thefrst movers in the industry. The company acquiredSparsh and entered the market in 2005. Since then,