A popular proverb says:
"Never put all your eggs in the same basket."
The recent US slowdown and fallout from the sub-prime crisis, has brought home the above message very clear to the Indian BPO industry.
Major BPOs are now trying to either enter the domestic market or if already there are trying to increase the Domestic contribution in their overall revenue.
Apart from diversifying the risk, the benefits of having a presence in the domestic market are as under:
1) Increase in deal size from a few thousand a year ago to $5-50 million.
2) While the margins for offshore processes is b/w 8-15 percent that for the onsite business are 14-18 percent.
3) The domestic BPO will achieve revenues of Rs 22,800 crore from Rs 6,900 crore in the FY 2008.
4) If the Domestic BPO continue growing at the same rate of 43 percent, it will touch Rs 31,000 crore by 2012 .
[Source]
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