An industry note: The Domestic Market Segment of the Business Process Outsourcing (BPO) Industry in India|Business Reports | Industry Reports|Case Studies|Business Reports

An industry note: The Domestic Market Segment of the Business Process Outsourcing (BPO) Industry in India

            
 
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Case Details:

Report Code : BREP051
Report Length : 29 Pages
Period : 2002 - 2009
Organization : IBM Daksh, Mphasis BPO, HTMT Global, Aegis BPO, Firstsource Solutions, Sparsh BPO, Serco BPO, Infosys BPO, Genpact, Wipro BPO
Pub Date : 2009
Teaching Note : Not Available
Countries : India
Industry : Computers, IT and ITeS

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“We plan to ride this wave of the domestic BPO boom and consolidate our position further by focusing on areas that are traditionally considered weak in the domestic BPO sector such as service quality.” 1

- Susir Kumar, CEO, Intelenet Global Services Pvt. Ltd.2, in June 2006.

“The main reason why we got into domestic market is because it acts as a hedge to our global business.” 3

-Alok Mishra, CFO, MphasiS Ltd.4, in November 2007.

“It is a wrong perception that margins (in domestic market) are low.” 5

- Partha Sarkar, CEO, HTMT Global Solutions Ltd6, in November 2007.

“Today if you are not in (the domestic market), you are late. For companies with extra capacity (manpower), the best option is to deploy personnel for Indian clients.” 7

-T.J. Singh, Research Director BPO, Gartner, Inc.8, in June 2008.

“The maturity in the (domestic) BPO market has just come in... There is a huge opportunity in this segment... We will bring our global approach to the domestic market. We will make investments in technology and create a transformational platform.” 9

- Amitabh Chaudhry, CEO and Managing Director, Infosys BPO10, in July 2009.

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Introduction

According to a study released by Ernst & Young in July 2009, the revenues of the Indian Business Process Outsourcing industry from the domestic market (domestic BPO) were expected to touch US$ 6 billion by FY 2011-12. Two major industry verticals – banking, financial services, and insurance (BFSI) and telecommunications (telecom) were expected to contribute 80% of these revenues...

Contents >>


1] “Face to Face with Susir Kumar,” www.nasscom.in, June 14, 2006.
2] Intelenet Global Services Pvt. Ltd, headquartered at Mumbai, India, is one of the leading providers of diversified BPO solutions to many organizations globally. As of March 2009, it operated in India, the US, Europe, and Australia with more than 27,000 employees. Source: www.intelenetglobal.com (Accessed on April 7, 2009).
3] Vishwanath Kulkarni and K. Raghu, “BPOs Look at Domestic Market to Drive Growth, Tackle Rupee Risk,” www.livemint.com, November 28, 2007.
4] MphasiS, a Bangalore-based information technology solutions and BPO services provider, had offices in 29 countries and more than 30,000 employees as of March 2009. It is owned by Hewlett Packard Company, a global leader in the Information Technology field.
Source: www.mphasis.com (Accessed on April 7, 2009).
5] Vishwanath Kulkarni and K. Raghu, “BPOs Look at Domestic Market to Drive Growth, Tackle Rupee Risk,” www.livemint.com, November 28, 2007.
6] HTMT Global, a Mumbai-headquartered BPO services company, caters both to domestic companies and companies abroad. As of March 2009, it had over 60 clients with an employee base of more than 13,000.
Source: www.htmtglobal.com (Accessed on April 7, 2009).
7] Archana Venkat Vikram, “Domestic Focus Pays Off for Many BPO Firms,” www.thehindubusinessline.com, June 16, 2008.
8] Gartner Inc. is an information technology research and advisory firm established in 1979, with headquarters at Connecticut, USA. As of 2008, it had revenues of US$ 1.28 billion with over 4,000 employees in 75 countries. It provides research and advisory services to leading technology companies, government agencies, and investment groups.
Source: www.gartner.com (Accessed on April 7, 2009).
9] Archana Venkat Vikram, “Domestic Focus Pays Off for Many BPO Firms,” www.thehindubusinessline.com, June 16, 2008.
10] Infosys BPO, the BPO arm of Infosys Technologies, had a turnover of US$ 279.5 million for FY 2008-09 and a net income of US$ 40.7 million. It has four platforms – hire-to-retire, source-to-pay, order-to-cash, and newspaper-in-a-box – to deliver BPO services.
Source: Shivani Shinde, “Infy Sets up Domestic BPO Ops; To Sign Govt Deal,” Business Standard, June 8, 2009.

 

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