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Home > Resource Center > Indian IT-BPO: Trends & Insights > BPO
BPO
FY2011 witnessed the next phase of BPO sector evolution - BPO 3.0 - characterised by greater breadth and depth of services, process re-engineering across the value chain, increased delivery of analytics and knowledge based services through platforms, strong domestic market focus and SMB centric delivery models. The rapidly expanding scope of services and their increasing adoption is making the already large opportunity even larger. The BPO exports revenues can expand four fold, while the domestic BPO market can grow seven fold over current levels in the next decade. But tapping this opportunity will require organisations to do things differently from current practices. Ke Highlights during FY2011 The BPO segment generated exports of USD 14.1 billion in FY2011, growing by 14 per cent over the last year. The industry accounts for 34 per cent of the worldwide BPO market in 2010, thus becoming the world s largest destination for BPO services delivery.
BPO accounts for 1.5 per cent of India s incremental GDP in the past decade and constitutes almost 7 per cent of India s total exports Generates employment to over 4.5 million people (direct and indirect), with 50 per cent of employees below 25 years The start of the new decade brings with it the next phase of BPO industry evolution BPO 3.0 characterised by: Greater breadth and depth of services Process re-engineering across the value chain Increased delivery of analytics and Knowledge Services through platforms Strong domestic market focus and SMBcentric delivery models
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Changing demand patterns led to revamp of operations for service providers high focus on client relationships, mining existing clients and restructure operations to provide focused vertical solutions Industry focused on achieving excellence in business process management, and deliver strong transformational benefits creating revenue impact for clients Industry is concentrating on growing higher end Knowledge Services that deliver significant intellectual arbitrage while the F&A segment is one of the most mature service lines within the Indian BPO industry, generating revenues of USD 3.2 billion in FY2011 Domestic BPO segment is expected to grow by 16.9 per cent in FY2011, to reach INR 127 billion, driven by demand from voice based services, in addition to adoption from emerging verticals, new customer segments, and value based transformational outsourcing platforms
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