September 29, 2011: It was a journey of ups and downs from 2006 to 2010 in the BPO sector as per the latest report from International Data Corporation.
According to the latest study conducted by International Data Corporation the trend seen in renewal of contacts and contract values in the Business process outsourcing sector has touched two different extremes. The report says that in these five years, US BPO contract values reached heights in some years and some year it was too low that many BPO companies have to face the consequences.
International Data Corporation, which holds excellence in market intelligence and analysis, could found that the five year trend was influenced by the recession in 2008. The outsourcing sector showed good business deals in the year 2008 but there was a down trend later in 2009 which was affected by the hit of recession. Companies ended up in loss and were reluctant to either renew contracts or get into new contracts. Some of the major industries affected were the financial services sector, public sector and the manufacturers.
The study also highlights that it is the financial and manufacturing sector which was most affected where as the public and infrastructure sector was able to manage the situation and maintain lengthy contrast with the vendors. But towards end of 2009 there was again a rebound where US based companies started entering more into the new contracts and as a result there was an upward trend in contract value. In the present scenario the BPO sector is showing a comeback as new contracts are being welcomed.
The study extends to spot top five US BPO outsourcing vendors in different industries. This ranking is made on the basis of new contracts, contract values and contract lengths of the companies in 2006 to 2010. According to the findings in the banking sector it is TCS which has been ranked top since the company holds the credit of best quality financial service provider across the globe. In Utilities and Transportation it is Accenture and Xerox/ACS respectively. As far as professional service is concern, Hewlett-Packard/EDS hold the top position. Last but not the least is the Retail trade industries where IBM stood ahead.
The findings of the study were very crucial and could deliver a perfect knowledge on the trends followed by BPO industry in the past five years. Other details of the study were provided at Worldwide BPO service market forecaster, organized by IDC. Eminent personalities from different industries were present on the occasion.