August 23, 2011: The latest report by Gartner states that global BPO industry is anticipating a global growth of 6.3 %. The report also added that the Asia- Pacific market will witness 17.9 % hike in business.
Gartner, the global research and consulting firm has come up with a report earlier this year on the scope of business in the offshore market, now the second report also talks about the upward trend in the Asia-pacific BPO and IT sector.
The report states that there is a strong sign of positive trend in the Asia-Pacific market when compared to the US market. Report also points out that Asia-Pacific was least affected by the global fluctuations, mainly due to the inherent economic strength of the region.
According to the report there is a high demand for the service provided by the Business Process Outsourcing (BPO) firms. Customer support/management, Human Resource related business solutions, banking, financial and accounting services are some of the outsourcing services which are in high demand. This is resulting in an increased number of investors looking for more funding into the region.
Earlier the global companies were interested in investing in offshore market like India only because of the cost effectiveness, but the trend has changed as the Indian Business Process Outsourcing (BPO) sector is widely accepting fresh technologies and innovations to make them well equipped to deliver high quality business solutions and services.
Gartner also found out that the North America’s Business Process Outsourcing (BPO) market is expected to grow only by 3.8 % in the financial year. The growth in Western Europe is comparatively less even though the demand for HR outsourcing and customer management related services is high. The Western Europe may have a growth up to 8.9 %.
The report throws light on the challenges faced by the European service providers. Challenges created by labor laws and trade unions in Europe are high. Moreover the challenge due to language problem is also a big threat.
Other findings of the report states that the Japan’s BPO industry will witness a fall in the business by .09 % in the fiscal, where as the Latin America’s Business Process Outsourcing (BPO) market will witness growth which is expected up to 14.7%.
The companies in the Asia-Pacific region basically form India, China and Australia will find this report extremely useful. Even though the region is still showing positive trend there is a threat of growth rate going down, as many companies are finding it comfortable to approach onshore market for business solutions instead of going in for offshore outsourcing vendors in the Asia-Pacific region.