The BPO export market in India is $ 11 billion. This is revealed by a survey done by Ernst and Young. This is the very market that has helped India to gain a leading position in the world BPO market. Currently the Indian BPO export market stands at $ 14.7 billion to be exact. This is also reflection of the increasing Compound Annual Growth Rate that is currently measured to be 37 percent.

Most of these off shoring services are provided to countries like North America, and the United Kingdom These countries provide India about 87 percent of its export assignments. It is estimated that the export market will amount to $ 16 to 19 billion by the year 2012.

But if we take a look at the domestic market then we will see that it has an even better growth rate. According to data available from 2008 the Indian domestic outsourcing market earns revenue worth $ 1.6 billion. This amount of revenue is more than 50 percent than what it used to be in 2003. It is also assumed that by the time the current fiscal ends the domestic market here will leap to $ 2 billion.

Many IT companies have now understood the potential of the domestic BPO market and that is why they are trying to pay due attention here as well. These companies include big names like Infosys, Wipro as well as some MNCs like IBM, Firstsource, Mphasis BPO, and Intelenet Global Services. It is expected that by 2012 this domestic industry will be worth $ 6 billion.

As far as establishing offices in other countries are concerned right now Brazil looks like the most potential market. It has an IT and telecom industry there is worth above $ 100 million. India’s TCS already has its offices there and another Indian BPO leader, Infosys, will open an office there within next few months.

So, it seems that despite recession Indian BPO will keep on to prosper thanks to these more promising markets.

That is why many of these companies are now seeking employees who know regional languages like Maithili, and Bhojpuri. These companies are making sure that people running the helpdesk in these villages can communicate with the local population in their own languages, because this will help the companies to gain a penetration in the deeper parts of these villages.

Right now the domestic BPO industry in India is worth $ 2 billion that is 40 percent more than what it was last year. This is even likely to increase to $ 6 billion by the time 2012 ends. Most of the revenues that are generated through these domestic BPO services have come through the finance and the banking industries. That is why banking companies like HDFC are ready to invest a lot of money in the villages of Tirupati.

There are BPO companies as well that are trying to establish there base in suburbs like Durgapur and Shimoga. These companies include Xchanging, and Hinduja Global Solutions.

Chemical manufacturers too are shifting their back office jobs in these rural areas. Tata Chemicals is one such company. Its back office jobs are done from villages in Uttar Pradesh and Gujarat. Both of these are major Indian states.

HDFC is currently using the services of RuralShores Business Services, a BPO company situated in Bangalore. The banking giant also is a 24 percent shareholder in that BPO company. This whole BPO endeavor by these big companies has helped in the coining of a new term “ruralshoring”.

This current and popular trend is supposed to establish a link among 500 places. This will definitely increase the business of these companies as well as the reach of the Indian domestic BPO services.

This will definitely create job opportunities in these villages, which is something really positive considering the ongoing recession. The total cost of investment is supposed to be in the range of 4 to 5 million INR.

However, experts believe it will need a lot of planned execution to make this whole process a success. But most of them are sure that this new model has the potential to be successful.

This step is supposed to help these BPOs to curtail investment in establishment cost. Thanks to this kind of outsourcing facilities they can now concentrate on the job leaving the rest of the infrastructure related issues to these telecom companies.

According to the practice these hosting service providers will take care of your total infrastructure ad its maintenance. All the BPO companies have to do is to tell the hosting companies the number of seats that they have to cover. Once the equipments are in place it would be business as usual for you.

This collaboration helps the BPO companies in another way. Now they do not need to la off people to cut cost. This helps the companies to preserve their work force. Some industry experts believe that in future this will help the companies do their business with minimum infrastructure. Only a few bare essentials like computers, and routers would do.

Once they have outsourced the whole process the BPO companies would not have to hire experts to look after the machines. This will save the companies about Rs 15 to 20 lakhs every year. A BPO company who has gone for hosting service can save up to Rs 40 lakhs.

This whole procedure of curtailing the cost is pretty unique and for once saves the jobs of those people who are already with the company for a long time. It is due to this innovative thinking that helps the Indian outsourcing industry to command a market price of $ 47 billion.

According to the figures of January-March companies involved in Business Process Outsourcing and other Information Technology related jobs have recruited 0.82 percent more people. This news comes as a boon at a time when people are very much afraid of losing their jobs. Right now with a stable government reelected at the helm of power people involved in this business are hoping that the situation will only turn for betterment.

Moreover, it is known that Wipro is slated to hire about 8,000 more employees this financial year. All the new recruitments will be done for its outsourcing business. Moreover, the company will find out talented workers from various Indian states that include Karnataka, Andhra Pradesh, and Maharashtra.

While employees are happy about getting an increasing opportunity to work with the best employers are also quite happy that the attrition rate are coming down. Big multinational companies like Genpact, Wipro, EXL, and WNS have all seen a good number of their employees saying ‘no’ to the lure of joining another company.

In Genpact and Wipro the rate of attrition has come down by 5 percent. So, now the revised attrition rate in both the companies is 21 percent and 13 percent respectively. But it is EXL that has recorded the best figures in this regard. The rate is lesser by 12.8 percent. In the case of WNS the rate has come down by 7 percent.

In fact most of the Indian IT firms have stopped merely depending on layoffs to handle the economical crises. They are trying to get innovative and that is why many of them have focused on controlling their operational costs.

The above-mentioned good news are basically complemented the fact that India still is the front-runner whenever a company decides to outsource its business and services. In this regard it leads the table placing other Asian countries like China, and Malaysia in the second and third places respectively.

This particular information will definitely allay the fear that might have been generated due to the hard stance taken by American President Barack Obama regarding outsourcing. Two things have basically worked behind this choice. One is the less expensive workforce and the other is the quality of the work.

These incidents show that the Indian BPO is still the most happening place and right now it has created lots of hope for a brighter future.

Though Manila still commands a large share of the BPO jobs, there are other cities like Cebu that are currently in huge demand. International firms like Live2Care, and Wipro Technologies have already opened their offices here and other companies are preparing to do the same by the end of 2010. The business is so prosperous here that industrialists involved in BPO can contribute up to 20 percent of the total revenue earned by the Government from BPO.

The importance of Davao City, on the other hand, can be clearly seen from the fact that last year it saw almost 56 percent growth in the BPO jobs. There are various schools in this city that provide training that would ultimately help one to get settled in the BPO sector.

The present Government has done its best to provide the right kind of necessary infrastructure in most of its major cities rather than focusing solely on a single one. This is the reason why the Philippines have seen a steady growth in the BPO sector even though there are reports of job losses in other sectors. It is also projected that its BPO sector will keep on growing and will reach 20 to 30 percent before the end of 2009. This will translate into adding around 100,000 new employees.

According to a research conducted by the Global Services magazine, Makati, another Philippine city, is currently one of the major BPO hubs. Right now this country is creating some buzz in the Business Process Outsourcing industry!