by: Sarah Joson
Thursday, December 26, 2013 | Outsourcing News |
International Data Corporation (IDC) recently released its ‘Worldwide and US Business Process Outsourcing (BPO) Services 2013-2017 Forecast’, a report which indicates that in 2017, the global BPO industry will grow 5.7 percent with a total value of $209.4bn. Moreover, the US market will post a growth rate of 4.3 percent and will be valued at $97.3bn.
Datamark Inc. released similar findings in its ‘Ten Business Process Outsourcing Trends for 2014’, where it was stated that the BPO market in the US is likely to increase further due to the rising costs of offshoring to emerging markets.
The report also identified that the rising demand for American-accented English and Latin American Spanish contact-center services providers, desire to work with a geographically-nearer outsourcing partner (so time zones would be similar), and the rising cost of labor in China and India are also affecting the decision of business executives to move processes back onshore the US; or providers situated in nearshore regions.
Datamark also highlighted in their report the findings of business advisory firm AlixPartners and electronics trade association IPC regarding the onshoring movement.
AlixPartners found in their study that the cost of manufacturing in the US is now more similar to Mexico’s and the segment is working to attain cost parity with China by 2015. IPC, on the other hand, reported that 14 percent of electronics companies that took their survey said they are considering moving operations back home, or set up new ones in North America next year.
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