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BPOs to tap local market for business
Shivani Shinde in Mumbai | May 08, 2007 13:55 IST
Gartner predicts the domestic market to reach $1.2 billion (Rs 4,920 crore) by the year-end, according to Nasscom . The market is expected to be driven by the telecom, banking, financial services and insurance, government and retail sectors.
Currently, there are just about 3-4 major players that cater to this market. But the number is bound to increase. For instance, Firstsource - with 96 per cent of revenues being contributed by US and UK geographies - is now looking at increasing its Indian revenue shares from 4 per cent to 10 per cent in FY08. Similarly EXL Services, is working on a strategy to increase its focus in the domestic market.
Arup Roy, senior research analyst-IT services, Gartner, opines the domestic market is yet to mature to the concept of outsourcing services.
"Domestic firms till now have been outsourcing the IT component of their operations but transactions being outsourced are at a nascent stage," he says.