BPOs in India are eyeing the domestic market, owing to recession in the US and Europe. The domestic BPO is estimated to be worth $1.8 billion. It is expected to reach $6 billion by 2012.

Venkat Kumar, Head of Operations in Reliance, said at the Nasscom BPO Strategy Summit 2009 in Bangalore, that there are opportunities in different verticals like telecom, insurance, and retail. The domestic BPO market has many opportunities and is growing. There is a need to identify those opportunities. It should be looked from the perspective of serious business opportunity and not just a temporary solution because of slowdown.

To enter the domestic market, companies would have to re-think their strategies, like creating new business models, new solutions, and operating models. Some are expecting the same margins as in international markets. But, this is not reasonable according to some analysts. Kumar said that it is necessary to have domain knowledge and expertise.

Rajiv Prakash, Director of Business Services, Future Group, said that companies can initiate here and later step up internationally. The requirements of modern retail are new as the sector is emerging in India. The skeletal system should be implemented at first. The analytics could be thought of down the line.

The security practices of the BPOs were also an import point of discussion at the Strategy Summit. Certain laws for data protection are followed internationally. Most Indian BPOs have started treading the same path to secure the confidence of clients. Kamlesh Bajaj, CEO of Data Security Council of India, said that the implementation of data leak protection solutions is one of the best ways to ensure data security.