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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 worlds largest des tination

BPO services delivery.

BPO accounts for 1.5 per cent of Indias incremental

GDP in the past decade and constitutes almost 7

per cent of Indias 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

phas e 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 SMB-

centric delivery models

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Changing dem and 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 bus iness process m anagement, and deliver strong transformational benefits

creating revenue impact for clients

Industry is concentrating on growing higher end Knowledge Services that deliver s ignificant intellectual arbitrage whi le the

F&A segm ent is one of the mos t mature service lines within the Indian BPO industry, generating revenues of USD 3.2 billio

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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