A study done by industry research firm Gartner shows that the global business process outsourcing (BPO) market is estimated to expand by 6.3 percent and 17.9 percent in the Asia-Pacific region this year.
Gartner Research Vice-President Cathy Tornborn said BPOs still serve as a solution for cost reduction and to keep businesses going.
It is expected that there will be an increase in demand for various services including customer management, human resources, as well as banking and finance in the next few years. Growth is also predicted in vertical markets such as retail, healthcare, transportation, as well as utilities.
"We also see an increase in transaction volumes, especially in payroll, recruiting, accounts payable and customer data analytics and knowledge process outsourcing (KPO) activities," Tornborn said.
Gartner stated that scalability, the infusion of new processes, and technology are crucial elements for the growth of outsourcing in the region. The firm also foresees a 3.8 percent growth in North America's BPO market in 2011. Western Europe, on the other hand, is predicted to grow 8.9 percent in US dollars terms. When it comes to Latin America, Gartner predicts a 14.7 percent growth in US dollar terms this year.