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Gartner Predicts Strong Activity in APAC BPO

by: Sarah Joson

Friday, September 28, 2012 | Outsourcing News |

Growth in the APAC BPO Market Anticipated

The latest study from Gartner Inc. was discussed in an article posted at BizTech2.in.com. It denotes some of the IT research firm’s predictions about the changes in the business process outsourcing (BPO) market in the Asia-Pacific (APAC) region (sans Japan).

As stated in the report, the BPO market in the region is set to grow to $9.5 billion by 2016, as it is striding to reach $6.45 billion by the end of this year, up from last year’s $5.9 billion.

According to T.J. Singh, Research Director at Gartner, the BPO market in the APAC region is a great source of opportunities for outsourcing providers as it is not as saturated as the other locations. Apart from saving on operational costs, APAC clients are said to be looking for flexible and quality services that can incorporate the best technology available.

Australia dominated the BPO market in 2011, accounting for over $4.63 billion, which is far greater than India’s $1.26 billion. Meanwhile, the most notable markets in APAC are still China and India.

The outsourced processes came from industries such as banking and financial services, communications, government (both local and federal), technology, retail, and travel and transportation.

As the economic issues in the US and Europe linger throughout the world, APAC clients are equally struggling on learning the ropes of the industry. Moreover, it is anticipated that as BPO grows in the region and becomes more accepted, challenges such as attrition and wage inflation will arise.

The BPO market can be divided into four major segments, each having smaller divisions. These are:

- Customer management (sales, marketing, and customer care)
- Enterprise services (HR, finance and accounting (F&A), operations, and payment services)
- Vertical services (vertical-industry-focused processes, such as mortgage services and credit card services for the banking sector, claims processing for insurance, and billing services for telecommunications)
- Supply management services (logistics, procurement, and warehousing)

According to Singh, service providers for the APAC market (excluding Japan) come from regional and international locations. The market is led by service providers from India and large, world-renowned suppliers, along with a handful of niche BPO service providers.

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