The business process outsourcing (BPO) market in India will grow 23.2 per cent to clock revenues of $1.4 billion in 2011, according to a new report from research firm Gartner.

“Changing demographics, increasing affluence and economic growth in Asia/Pacific continue to drive shared services and BPO adoption, especially in Australia, India, South-east Asia and China,” said Mr T.J. Singh, research director at Gartner.

The Indian BPO market grew 28.6 per cent in 2010 to $1.139 billion in revenues.

The growth was driven primarily by increasing volumes in existing BPO engagements, clients expanding the scope of existing relationships, and pent-up demand from 2009, a press statement from Gartner said.

Over the past three years, many established India-based BPO service providers and US/ Europe-based multinational services providers have started focusing on the Indian domestic market.

“This phenomenon has been accentuated by the advent of the global slowdown in the US and Western Europe, in which service providers who were focusing solely on the international market realised that there is merit in the Indian BPO market, given the fact that it grew rapidly even during the global economic crisis. The large and midsize players have now stepped up their activities,” said Mr Singh.

The BPO services market in Asia-Pacific (excluding Japan) reached $8.6 billion in 2010, a 21.5 percent increase from 2009 revenue of $7.0 billion. The largest BPO country market in the region is Australia, which is more than three times larger than India, the second-largest consumer of BPO services.

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