The Indian publishing BPO landscape has evolved in terms of technology, service depth, maturity and developed capability. The industry has also witnessed the percolation of technology – in terms of adoption and delivery. With many acquisitions overseas, publishing BPOs now have the capacity and the capabilities to address almost every publisher’s needs. However, the industry is undergoing vendor consolidation and this has resulted in changes in the client mix.
Indian outsourcing so far rode the value proposition of significant labor cost savings. However, the widespread financial crisis coupled with the rising costs is leading to decreasing margins for many Indian BPOs. To meet the challenge of margin pressures, offshore service providers are exploring several ways to reduce costs, including moving to smaller cities.
India continues to remain the preferred outsourcing destination with the total revenues from the outsourcing industry estimated at $20 b for the year 2008. According to Nasscom, the combined IT-ITes revenues are expected to be $50 b for 2008 and the total addressable market for the BPO industry is estimated at $630 b.
The total domestic BPO market in India being catered to by third-party players is estimated at Rs. 18 b for FY08 and is expected to reach Rs. 77 b by FY12. While there are several rapid growing and emerging verticals such as telecom, financial services, etc. within the domestic market, one of the more attractive sectors is the Government sector.
Monthly tracking of BPO/KPO contracts, M&As, and funding news...
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