Profiting in the domestic Indian CRM outsourcing market
The Indian domestic CRM outsourcing market is expanding rapidly, and vendors are clamoring to get into a market that is expected to continue to grow over the coming years. This strategic focus highlights the main business issues faced by contact center players that are already competing in this market or aim to do so in the near term. We take into account the commercial opportunities that exist in India, as well as the obstacles that may be encountered along the way.
SUMMARY
Impact
Ovum view
Key messages
OFFSHORE INDIA: THE PARTY’S OVER
Overview
Offshore India CRM outsourcing growth is slowing
Cost
Negative perceptions in popular culture
Language restrictions
Distance and time zones
Growth in alternative locations
Focus on alternate BPO/IT service functions
INDIA’S DOMESTIC MARKET OPPORTUNITY
Indian domestic CRM market snapshot
Overall market size
Onshore/offshore evolution
The time to attack the domestic Indian market has arrived
Economic factors favor Indian domestic growth
Growth of Indian consumerism means CRM outsourcing opportunities
Indian verticals are poised to take on CRM outsourcing
Telco
Financial services
Retail
Public sector
Travel and tourism
Horizontal functions present various levels of revenue growth
Customer service
Marketing and sales
Technical support
Debt collection
OPERATIONAL ISSUES FACING INDIAN DOMESTIC CRM OUTSOURCING DELIVERY
Overview
Lower input costs than offshore
Leveraging second- and third- tier cities
Lower costs, but more of them
Language requirements
Local culture sensitivity
Limited middle management expertise in second- and third-tier cities
Limited profitability
RECOMMENDATIONS
Recommendations for vendors
Determine ability to attack domestic Indian CRM outsourcing market
Sell CRM outsourcing services on the basis of managing growth
Look for sites with multiple language capabilities
Embrace second- and third-tier cities for better margins
Look for automation opportunities
Where possible, look for service bundling partnerships
Aggressively develop middle management skills
APPENDIX
Further reading
Methodology
Impact
Ovum view
Key messages
OFFSHORE INDIA: THE PARTY’S OVER
Overview
Offshore India CRM outsourcing growth is slowing
Cost
Negative perceptions in popular culture
Language restrictions
Distance and time zones
Growth in alternative locations
Focus on alternate BPO/IT service functions
INDIA’S DOMESTIC MARKET OPPORTUNITY
Indian domestic CRM market snapshot
Overall market size
Onshore/offshore evolution
The time to attack the domestic Indian market has arrived
Economic factors favor Indian domestic growth
Growth of Indian consumerism means CRM outsourcing opportunities
Indian verticals are poised to take on CRM outsourcing
Telco
Financial services
Retail
Public sector
Travel and tourism
Horizontal functions present various levels of revenue growth
Customer service
Marketing and sales
Technical support
Debt collection
OPERATIONAL ISSUES FACING INDIAN DOMESTIC CRM OUTSOURCING DELIVERY
Overview
Lower input costs than offshore
Leveraging second- and third- tier cities
Lower costs, but more of them
Language requirements
Local culture sensitivity
Limited middle management expertise in second- and third-tier cities
Limited profitability
RECOMMENDATIONS
Recommendations for vendors
Determine ability to attack domestic Indian CRM outsourcing market
Sell CRM outsourcing services on the basis of managing growth
Look for sites with multiple language capabilities
Embrace second- and third-tier cities for better margins
Look for automation opportunities
Where possible, look for service bundling partnerships
Aggressively develop middle management skills
APPENDIX
Further reading
Methodology
LIST OF TABLES
Table 1: Indian domestic outsourced CRM AP growth, 2009–2015
Table 2: Time zone and travel difference from London
Table 3: Time zone and travel difference from New York
Table 4: Indian offshore outsourced CRM APs, 2009–2015
Table 5: Global mobile telephone adoption ranking – top 10
Table 6: Projected Indian fixed-line expansion, 2008–2014
Table 7: Global Internet user ranking – top 10
Table 8: Indian retail performance, 2004–2009
Table 9: Indian languages ranked by magnitude and percentage of the population
Table 10: Key Indian languages spoken by state
Table 1: Indian domestic outsourced CRM AP growth, 2009–2015
Table 2: Time zone and travel difference from London
Table 3: Time zone and travel difference from New York
Table 4: Indian offshore outsourced CRM APs, 2009–2015
Table 5: Global mobile telephone adoption ranking – top 10
Table 6: Projected Indian fixed-line expansion, 2008–2014
Table 7: Global Internet user ranking – top 10
Table 8: Indian retail performance, 2004–2009
Table 9: Indian languages ranked by magnitude and percentage of the population
Table 10: Key Indian languages spoken by state
LIST OF FIGURES
Figure 1: Indian offshore outsourced APs (thousands), 2009–2014
Figure 2: Rupee versus US dollar and UK pound, 2009–2010
Figure 3: Indian domestic outsourced APs, 2009–2010
Figure 4: Indian domestic/offshore split, 2009 and 2015
Figure 5: Indian GDP growth, 2008–2015
Figure 6: Indian GDP growth per capita, 2008–2015
Figure 7: SENSEX versus Dow Jones, 2006–2010
Figure 8: Indian inflation projections, 2008– 2015
Figure 9: Shifts in Indian consumption patterns, 1985–2025
Figure 10: Shifts in Indian discretionary spending patterns, 1985–2025
Figure 11: Indian telephony revenues, 2006–2014
Figure 12: Leading consumer confidence rankings, 1Q10
Figure 13: Internet access points of Indian users, 2006/07
Figure 14: Total Indian ATM transactions using retail bankcards and average transaction value, 2004–2014
Figure 15: Total credit/charge cards in India, 2004–2014
Figure 16: Total contract value of public sector contracts in India, 2002–2010
Figure 1: Indian offshore outsourced APs (thousands), 2009–2014
Figure 2: Rupee versus US dollar and UK pound, 2009–2010
Figure 3: Indian domestic outsourced APs, 2009–2010
Figure 4: Indian domestic/offshore split, 2009 and 2015
Figure 5: Indian GDP growth, 2008–2015
Figure 6: Indian GDP growth per capita, 2008–2015
Figure 7: SENSEX versus Dow Jones, 2006–2010
Figure 8: Indian inflation projections, 2008– 2015
Figure 9: Shifts in Indian consumption patterns, 1985–2025
Figure 10: Shifts in Indian discretionary spending patterns, 1985–2025
Figure 11: Indian telephony revenues, 2006–2014
Figure 12: Leading consumer confidence rankings, 1Q10
Figure 13: Internet access points of Indian users, 2006/07
Figure 14: Total Indian ATM transactions using retail bankcards and average transaction value, 2004–2014
Figure 15: Total credit/charge cards in India, 2004–2014
Figure 16: Total contract value of public sector contracts in India, 2002–2010
