Friday, July 8 2005 17:54 Hrs (IST) - World Time -

Bangalore: Despite the inherent growth potential, the domestic BPO market continued to be small due to general perception held by BPO vendors that the current domestic market was not ready and relatively unattractive compared to the global BPO market, according to an IT expert.

In India the domestic BPO market was just Rs 650 crore, Ajit Sankaran, Manager Software and Service Research, IDC India Limited said in Bangalore today (July 8, 2005) while delivering a lecture on 'Business Process Outsourcing: Opportunities at Home' at the 18th India ICT Industry briefing session.

Ironically, while domestic BPO vendors felt the market was unattractive, domestic companies on the other hand felt that vendors were not available, he said.

The main inhibitors for the growth of the market were the low margins and the 'no-real cost advantage', he said.

Pointing out that the IDC estimate of the global BPO revenue was $450 billion in 2004, Sankaran said that though currently the domestic BPO market was miniscule, it held great potential.

Envisaging that banking and telecom services would remain the major drivers of the domestic BPO market, he said that consumer durables would follow close behind.