According to a report by Ernst & Young, IT companies in India are expanding operations to new geographies. Due to the global economic crisis, local tech firms are also focusing more on large projects in the domestic market, making India's outsourcing industry to reach a compound average growth rate of 38 percent.
"The entire Indian IT export industry has been severely impacted due to developments in the U.S. and U.K., and as a result, offshore services providers have started addressing newer markets in Europe, Asia and Latin America that are relatively insulated from recession," said Sudip Saha, senior research analyst of services at Springboard Research, in an email interview.
The increase in demand from banking, telecom, government, and other sectors will also boost growth of the domestic BPO market. Ernst & Young said that the domestic outsourcing market in India registered a growth rate of more than 50 percent over the last five years.