New Delhi, April 20 (Inditop) India’s business process outsourcing (BPO) industry will double its revenues in less than two years despite the economic slowdown and protectionist measures of western countries, a report by analyst firm Gartner said Monday.
The top 20 India-centric BPO service providers accounted for $4 billion in revenue in 2008, representing 5 percent of the $80-billion revenue of the top 150 BPO companies in the world.
By 2010-end, the market share of India’s BPOs is expected to become 10 percent as many corporates would turn towards low-cost BPOs as part of their cost-cutting measures, Gartner said.
“Indian BPO providers are swiftly evolving to balance exposure to vertical industries, currency and legislation issues,” Gartner’s senior research analyst Arup Roy said.
“Their strategies include investing in onshore and nearshore delivery, and pioneering new area of analytics services or knowledge process outsourcing (KPO), where Indian BPO players are shining,” he added.
North America has been the most successful sales location for Indian BPO providers, where the top-20 India-based BPOs generated about $2.2 billion in revenue last year, while revenue from Britain was around $1.4 billion.
India still remains an attractive destination for new BPOs to start operations with easy regulatory norms and cost advantage, the analyst firm said.
“It’s highly likely that many new competitors will emerge from India during the next few years. Contact centres and analytics services will likely see the highest growth,” Cathy Tornbohm, research vice-president at Gartner, said.
