The BPO market growth was driven primarily by increasing volumes in existing BPO engagements, clients expanding the scope of existing BPO relationships, and a number of new BPO deals in 2010 were from pent-up demand from 2009.

Gartner estimates the Indian domestic BPO market to reach $1.4bn in 2011, up 23.2% from 2010, and to reach $1.69bn by 2012 and $2.47bn by 2014.

The research firm said that the BPO services market in Asia/Pacific and Japan is made up of a good mix of multinationals, regional and local pure-play BPO service providers; IT services providers with BPO assets and capabilities; and telecom vendors.

The research firm said that the largest BPO country market in the region is Australia, which is more than three times larger than India, the second-largest consumer of BPO services.

The BPO services market in Asia/Pacific (excluding Japan) reached $8.6bn in 2010, a 21.5% increase from 2009 revenue of $7bn.

By vertical industry, banking and financial services, communications, government (both local and federal), technology and travel and transportation were the largest consumers of BPO services in the region.