Domestic BPO Challenges

Domestic Challenges

The domestic BPO sector requires focused initiatives from stakeholders to achieve its market potential. Currently, regulatory barriers and perception issues remain roadblocks to the uptake of domestic BPO.


Regulatory barriers such as a cap on the extent of domestic operations that can be delivered from an existing offshore delivery center, disallowing the use of common telecom infrastructure for international and domestic business, etc, are restricting seat utilization and negatively impacting the margins of providers serving both international and domestic clients. Indian providers have started serving international clients in capital markets vertical, but are prevented from providing the complete range of services to domestic clients in this space due to regulations. Regulations should be modified to give an impetus to the growth of domestic BPO.

The absence of a clear value proposition for domestic buyers is another deterrent to the markets growth. Providers need to communicate their value proposition better, especially due to the lack of arbitrage-driven proposition for domestic BPO. Increased adoption of outsourcing by the Indian government and development of model contracts are initiatives that can further help grow the domestic BPO market.

From Nasscom-Everest Indian BPO Study