Ovum predicts a $93.4B revenue for the global business process outsourcing (BPO) market in 2015, based on a compound annual growth rate (CAGR) of 5.4 percent and the $71.92B it reached back in 2010.
One of the key factors for the strong developments in global BPO is the active participation of emerging economies such as India and China – countries that are showcasing the benefits of BPO. Ovum also stated that from the end of 2010 to the end of 2015, the BPO market of Greater China will grow at a CAGR of more than 16 percent, while India’s market will post a 15.7 percent increase.
Ovum analyst Hansa Iyengar said outsourcing enables companies that try to reduce costs to invest in people who will manage non-core business functions. This process cuts costs and increases efficiency. They now have more time to work on their core processes. Enterprises also learned that aside from back office functions, they can also outsource human resources tasks, engineering, design, as well as research and development. Iyengar added that developed economies will be the ones that can take advantage of these new BPO sectors.
She also noted that vendors need to focus more on pricing contracts as these are important during negotiations. Businesses tend to spread out their investments, and small and medium-sized companies are now open to outsourcing. Service providers need a plan to meet the requirements of clients. There is a need to offer outsourcing solutions that can be customized and are low-cost and very scalable.