In the last few years, the BPO segment has been focusing on re-engineering itself in order to deliver transformational impact to customers. A ‘Verticalised’ approach has been a key marketing strategy – developing indepth capabilities across the entire value chain in specific verticals. BPO firms are also increasing their onshore and nearshore footprint to enable customer entry into local markets; firms have also been actively implementing non-linear growth initiatives that ensure higher realisations for service providers, while controlling costs, facilitating faster time-to-market and improving satisfaction at the clients’ end.

Key Highlights during 2012

• BPO exports expected to reach USD 16 billion in FY2012, growing by over 12 per cent over FY2011

• BPO firms move from efficiency to effectiveness – focusing on re-engineering themselves in order to deliver transformational impact to customers – follow a ‘Verticalised’ approach by developing in-depth capabilities across verticals; increase onshore footprint and implement non-linear growth initiatives
• Indian BPO firms are developing future-ready solutions – platform + cloud and creating customer impact though service delivery excellence
• Knowledge services segment growing in significance; fastest growing among BPO segments at over 15 per cent; has pioneered outsourcing in areas such as data analytics, data management and legal services
• Data analytics is expected to grow 19 per cent, much faster than BPO industry average; key drivers include emergence of analytic tools, rising volumes of data, increased data-driven decision making and emergence of on-demand models
• Domestic BPO segment is expected to grow by 17 per cent in FY2012, to reach Rs 149 billion, driven by demand from voice-based (including local language) services and increasing adoption by both traditional and emerging verticals, including the government