Gone are the days when Indian’s large IT companies were less interested in the nation’s domestic outsourcing market. For all major deals, they were eyeing U.S and Western European companies. But the trend changed significantly in 2007 when the actual twist came in. Indian companies fetched many major outsourcing deals. The Bank of India-HP deal, the Department of Company Affairs-TCS deal, the Dena Bank-Wipro deal, the Tata Teleservices-TCS deal, the Bharti-IBM deal, the Dabur-Accenture deal, and the Ministry of Finance-HP-Microsoft deal are the ones inked on a larger platform by Indian companies. Initially the buzz started with IT-services deals, but it is now gradually expanding to the Business Process Outsourcing (BPO) segment as well.
The Indian domestic BPO market, which presently stands at $1.41 billion mark, is likely to increase by 35 percent to $5.38 billion by 2012, according to a recently released study by ValueNotes, a business intelligence and research firm. With growing awareness among customers and increasing interest and surging maturity among providers in the domestic market, the share of third-party providers — that presently stands at about $424 million — will increase significantly by 44 percent to 1.82 billion by 2012.
| Third-party Provider Segmentation |
| Group |
Providers |
Key characteristics |
| International Leaders |
IBM-Daksh, HTMT, MphasiS BPO, Firstsource, HCL, Intelenet |
- Established BPO provider with total employees > 5,000
- Primary focus on international mkts.
- Presence across multiple locations
- Typically < 20% revenues from domestic customers.
|
| India Leaders |
Aegis BPO, Andromeda, InfoVision, OmniaBPO |
- Established BPO provider with total employees > 5,000
- Primary focus on domestic markets
- Typically > 60% revenues from domestic customers or substantial scale of domestic operation.
|
| Emerging Co.s |
ATS Services, Caretel, Intouch, Kankei, Magus, Spanco, vCustomer |
- Employee size 500 to 5,000
- Limited to specific verticals or horizontals; specialized offerings on a small scale only
- Cater to domestic and/or international customers.
|
| ‘Me-too’ Players |
GK Management, Access Systems |
- Typically < 400 employees
- Offering undifferentiated low-value
services
- Limited presence in terms of delivery
centers and marketing setup.
|
|
Source: ValueNotes Research
|
