Consolidation wave likely in BPO sector: Gartner

Process management sector expect high growth

PTI | December 29, 2010



With fast changing industry dynamics, the country's BPO sector is expected to see a consolidation wave in the coming months, says global research group Gartner.

"A consolidation wave in Business Process Outsourcing (BPO) sector is likely (in the coming months). Since it is challenging to cope with changing dynamics, some existing entities may move to different lines of business," Arup Roy, Senior Research Analyst at Gartner, told PTI.

The USD 12 billion Indian BPO industry is facing stiff competition from countries like the Philippines and the top 10 players account for about 75 per cent of the total market.

Besides, in recent years, as part of their competitive strategies, many domestic BPO players have been looking at broadening their service portfolios.

"BPO providers are aiming to differentiate services via broadening their service portfolios to provide end-to-end services, such as, source-to-pay, and through investments in technology for point solutions automation and business process utility services," a recent Gartner report said.

Roy noted that process management segment, which is expected to be worth over a billion-dollar in coming years, offers good business opportunities for domestic BPO entities.

"Process management (sector) is expected to see high growth. This segment will provide new revenue streams as well as cross-selling opportunities for many players," he said.

According to him, process management segment is expected to be worth about USD 1.7 billion by 2014 whereas this market was pegged at around USD 600 million in 2009.

On the other hand, Roy pointed out that BPO sector is facing challenges like rising wages and increasing IT costs.

 

Comments

 

Other News

How the mind can help the body heal itself

Why do some people recover from illness against all odds? Can our beliefs, emotions and consciousness influence the body’s ability to heal? Drawing on over three decades of experience in medicine, research and medical innovation, internationally trained ophthalmologist and author Dr Dinesh Verma ex

1,364 anti-cancer formulations to cost less from today

The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has capped trade margins on the Maximum Retail Price (MRP) of 137 anti-cancer drugs. This was based on the recommendations of an Expert Committee constitute

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter