Gartner, Inc. reports business process outsourcing market in India is expected to reach $2.47 billion by 2014 from $1.139 billion in 2010 which was a 28.6 percent increase from 2009. The predicted 23.2 percent increase is expected to continue climbing well into the decade, according to the report, where the outsourcing market figures to increase to $2.47 billion in 2014. That figure would have more than doubled the current Indian outsourcing market.
“Changing demographics, increasing affluence and economic growth in Asia/Pacific continues to drive shared services and BPO adoption, especially in , India, Southeast Asia and China,” T.J. Singh, research director at Gartner, said. “There is growing demand for multicountry shared services and BPO services within Asia/Pacific. Buyers continue to invest in services that deliver scalable, high quality and consistent services across their geographical presence.”
Despite the rapid expansion, India is only the second largest BPO market in the world, according to the report. The country with the largest business process outsourcing market is Australia, which is more than three times as large as the BPO market in India. Banking and financial services, communications, government, technology and travel and transportation were the largest BPO services consumers in the region. Singh says that global and regional mergers have contributed to India’s outsourcing growth.
“There was significant consolidation in the global and regional BPO market in 2009 and 2010 with some large merger and acquisition deals impacting the regional BPO service provider landscape,” Singh said.