Global Services Set for Growth in 2013
by: Sarah Joson
Friday, February 15, 2013
Category: Outsourcing News
Every year is different in the global services industry. This 2013, however, predictions from Everest Group indicate that it will experience average growth.
The results of the recent Market Vista webinar, a survey done by Everest Group, were discussed at BPOOutcomes.com. More than half (58 percent) of survey participants anticipate a faster growth rate for the industry this 2013, while 19 percent foresee that the growth rate will be similar with 2012ís.
Q3-Q4 Performance Indicates Hope
The overall performance of the global outsourcing sector last year was inferior as transactions declined to 1,633 from 1,929 and is even more noticeable if compared to 2010ís 1,978 (year-over-year). But during the last two quarters of 2012, transactions improved from 380 in Q3 to 401 in Q4 and could indicate a steady rise in activity.
The Everest report also noted that from 2010 to 2012, continental Europe was the only region that did not slow down in transactions. Regions that showed a decline in deals are North America, from 733 in 2010, 699 in 2011, to 541 in 2012. UK also showed a decrease at 302 from 373.
Transactions in other parts of Europe declined from 522 to 475 and didnít move at 473 in 2012. In other parts of the world, there were 440 deals in 2010, 382 in 2011, and 317 last year.
Much of the processes outsourced were related to banking, financial services and insurance (BFSI), manufacturing, distribution and retail (MDR), public sector, and healthcare.
Outsourcing Potential in Latin America
Everest Group considers Latin America as the underdog when it comes to outsourcing destinations. The region provided 27 service centers during 2010, it declined to 22 in 2011, but jumped to 37 last year. Captive center in Europe went from 32 to 32 to 29 while the Asia-Pacific region posted 93 to 84 to 90. Singapore showed the highest service center activity in the Asia-Pacific region during 2012. For Europe, it was Romania and in Latin America, it was Colombia.