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Outsourcing revenues from the telecom sector in India are set to grow at a Compounded Annual growth Rate (CAGR) of 31% to nearly $2 bn in 2012, according to the study done by Ernst & Young to study the growth potential of the domestic BPO industry.
For the past two years, Bharti has been growing at CAGR of 41%. The telecom industry has been adding around 10 million subscribers every month with a subscriber base of 375 million in 2008-09.
Bharti Airtel, which is the largest mobile service provider in the country played a pioneering role by outsourcing many of its non-core functions in the year 2005. It brought a new trend and changed the way the Indian businesses were run till now. It has forced others to follow suit, the consultancy said in the study.
In the fiscal year 2008, revenues generated from the telecom sector stood at $661 contributing 50% to the total domestic BPO revenues.
“This domain (telecom) has already witnessed a couple of large outsourcing deals in recent months and the trend is expected to continue,” said Ernst & Young partner Milan Sheth. The trend started in August 2005 with Bharti Airtel signing a $272.2-million deal with four global BPO companies—IBM Daksh, Mphasis, Teletech and HTMT—to outsource its call centres.
The main driving force in boosting BPO in telecom sector is demand for customer care and sales and marketing services, the report said.
Customer service is becoming more key to telecom service providers because it can be a differentiator in the marketplace—more so, because technology is uniformly accessible to all providers.
BPO in telecom sector is a primary source of creating jobs. In 2008, the sector employed over 1,22,440 in BPO firms. It is expected to double to 2,94,444 in 2012. After telecom, banking is the biggest employment generator for domestic BPO firms. As per the report statistics, in fiscal year 2008, the banking sector employed around 70,100 people and the number is projected to touch 2,25,900 in 2012. The two sectors jointly contribute 80% of the domestic BPO revenues and poised to reach $ 6 billion in 2012. The Economic Times
May 28, 2009
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