With the US in a recession, BPO giant Genpact is looking at the domestic market to expand its business. The company is expecting to close about 30 outsourcing deals in sectors like manufacturing, telecom, utilities and financial services.

The Indian BPO market is currently valued at about $1.3 billion and is expected to grow by 40% in 2009. The deal size however is small, ranging between $1 million and $5 million. Genpact is also looking at China, Japan and West Asia as growth markets says a report in the Economic Times.

Traditionally the domestic market has been that of lower margins, but according to Genpact’s president and CEO, Pramod Bhasin, the margins in the domestic market are becoming comparable to those overseas. “We don’t have high telecom and other infrastructure costs in India and we can work out of smaller towns, thus saving further,” the paper quoted Bhasin.

Also, China’s $1.4-billion BPO market is expected to grow by 26% in 2009 and Genpact is set to take its share of the pie. The company has identified banking and telecom sectors for growth and is looking for joint ventures with local partners to tap the market.

Genpact is focusing on the financial services sector in Japan including transaction processing. West Asia remains an untapped market that the company will explore in another six months.