Indian domestic BPO market to grow 25% in 2010: Gartner

The Indian business process outsourcing (BPO) market has rebounded faster than its global counterparts. The domestic BPO market is expected to grow at 25 per cent in 2010 to touch $1.2 billion (around Rs 5,400 crore) by 2011, said a Gartner study.

The domestic India BPO services market grew by 7.3 per cent year-on-year in 2009, primarily due to the global economic uncertainty, which led to some price and volume pressures.

According to research and advisory firm Gartner, the BPO market in India is estimated to grow 19 per cent through 2013 and grow to $1.8 billion (around Rs 8,100 crore) by 2013.

“During the first half of 2009, we did see some optimism about spending but many firms did not decide on it, as they were not sure how the economy in North America and Europe would pick up. But towards the second half of 2009, there were inquiries and we saw a 20 per cent growth rate,” said Gartner Research Director T J Singh.

Meanwhile, Singh also added that the deal size within the domestic segment is also becoming larger. “The deal sizes in the domestic BPO segment range between $5-10 million (around Rs 22-45 crore) and go up to $20 million (Rs 90 crore). There are the larger $50-million deals as well but the percentage of these deals would be just 10 per cent when compared to the smaller ones,” added Singh.