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The Current Opportunities and Challenges in Global Outsourcing

by: Sarah Joson

Monday, September 10, 2012 | Outsourcing News |

A press release posted at news.Yahoo.com features the upcoming International Outsourcing Summit (IOS) 2012, which will take place on October 7-9 at the country’s renowned business district, Makati.  
 

BPO industry enters the golden age


According to the Business Processing Association of the Philippines (BPAP), IOS event organizer, the global IT-BPO industry is entering the golden age as innovation, surge in demand for complex processes, and changes in public policy brought about by the extended economic crisis increase uncharted opportunities and challenges for the outsourcing sector.    

Nearly 500 delegates composed of IT-BPO experts and executives are expected to attend the summit’s fourth annual instalment, which is anticipated to grow even further due to the country’s increasing reputation as a global provider for services exports and influence in the global IT-BPO industry. In fact, during the first three years of the summit, the industry’s revenues have grown 40% from $7.1 billion in 2009 to $11 billion to 2011. Also, an increase of 44% in direct employment was identified from 423,000 to 638,000.

The summit will also be attended by clients from different types of businesses. Some of which are restaurant operators, global logistics firms, and international telecommunications companies.

Meanwhile, India’s NASSCOM and BPAP said last year, 13% or $11 billion of the $87.32 billion global industry revenue was contributed by the Philippines. Revenues are expected to surpass a rather conservative forecast which is $13 billion or if the country grows at a rate of 20%, and can even lead to an increase in the total market share.

Furthermore, India still reigns as the leader of global IT-BPO, contributing 58 percent of last year’s global revenues. India’s software services and products make up 87 percent of India’s services exports, and is anticipated by NASSCOM to grow 15 percent this year.

The country’s voice-based segment continues to grow at a rate of 20 percent. On the other hand, its robust non-voice sector and strong position in non-voice services make it a compelling competitor in the outsourcing arena. Non-voice services such as complex processes ranging from health information management to engineering and project management services contributed 33 percent of its IT-BPO revenue last year. IT outsourcing (software products and services) grew 40 percent, while health information management posted a 170 percent growth for 2011.

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