Unlike the overseas business, labor or cost arbitrage does not drive the (INdian) domestic BPO market.Said Arun Jethmalani, CEO of ValueNotes. According to him, It’s strategic factors such as the need to scale rapidly, focus on core competencies, enhanced productivity and reduced time to market that are driving domestic demand.
According to this report ValueNotes’ research indicates that the domestic BPO industry stands at an inflection point, with the growing scale of Indian buyers as well as the emergence of significant vendors with greater capabilities. The recently released report by ValueNotes estimates the share of third party revenues is 27 percent of the domestic BPO market, at Rs. 18 billion for FY08. This is expected to grow at a CAGR of 44 percent over the next four years reach Rs. 77 billion by FY12.
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