Indian SMEs in BPO Sector Seeing Growth


An increase in business from small and medium enterprises was observed by many Indian BPO firms. This led to the growth of BPO as a new sector. Offshoring and outsourcing were prompted due to the requirement of cutting costs. Many businesses were prepared for risk associated with offshoring.

According to the Zinnov report, Indian BPO exports accounted to $10.2 billion in 2008. The contribution of SMEs in Indian BPO exports was found to be 35-40 percent in 2008 which was 25-30 percent in 2006.

For huge market opportunities in the BPO segment, the sector was also being targeted by many Indian vendors. Smaller customers were mostly preferred for market opportunities in the BPO segment. During recession, there was a shift from large clients to smaller clients by the segment. This might be the reason for increasing focus on small clients. There was significant latent demand in the sector though the order was small.

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