Global research firm Gartner said India’s $12 billion BPO industry will likely see a consolidation wave very soon as a result of the fast changing dynamics of the industry.
"A consolidation wave in business process outsourcing (BPO) sector is likely (in the coming months). Since it is challenging to cope with changing dynamics, some existing entities may move to different lines of business," Senior Research Analyst Arup Roy said. He added that the process management sector, which is likely to flourish in the coming years and is expected to reach $1.7 billion in 2014, means good business for domestic BPO companies. However, Roy said the industry is currently facing certain issues such as increase in labor and IT costs.
In a Gartner report, it is stated that many Indian BPO firms consider expanding their service offerings in an effort to stay competitive and be able to provide end-to-end services.