The key driver for BPO in telecom is demand for customer care services. The major reason for the growing importance of the quality customer care services is that it is the only differentiator and more so technology is uniformly accessible to all providers.

BPO for telecom is also a huge job creator, employing over 1,22,440 people in BPO firms in 2008  a number that is set to more than double to 2,94,444 in 2012. After telecom, banking is the biggest employment generator for domestic BPO firms. The primary reason for the growth of the sector is due to telecom companies like Bharti Airtel, which played a pioneering role by outsourcing many of its non-core functions in 2005, changed the way Indian firms have traditionally run business and putting pressure on others to follow suit. Telecom revenues made up 50% of the domestic BPO revenues at $661 million in 2008.

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