Indian Captive BPO Market to Sustain Growth as Mature Players Seek Roles beyond Delivery

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Dallas — October 8, 2010 — Everest Group

Eric Simonson

Amneet Singh

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Salil Dani

  • Although the Banking, Financial Services and Insurance (BFSI) vertical continues to lead the Indian captive market in terms of employee headcount, the last few years have witnessed increased adoption in verticals such as Manufacturing, Distribution and Retail (MDR) and Telecom.
  • The majority of Indian captives serve companies based in the United States. At the same time, over the last two years adoption is increasing among companies in the United Kingdom and mainland Europe.
  • Captive centers in India support a broad spectrum of services, with recent set-ups indicating preference for sourcing high-value services including engineering services/R&D and knowledge processes from captives.
  • New captive setups prefer established tier-one cities in India, with Bangalore emerging as the leading destination. Unlike third-party service providers that have started expanding their offshore operations to tier-two or -three cities in India, the instances of buyers expanding their captive footprint to these locations are limited.