Global BPO Market to grow 5.1% by 2015: TechNavio Report

According to new report by TechNavio, global BPO market is estimated to grow at Compound Annual Growth Rate (CAGR) of 5.1% for the year 2011-2015. TechNavio, a leading research and analyst firm offers strategic research services to leading companies. As per the report- ‘The Global Market BPO 2011-2015’, the outsourcing industry remains immune from challenges posed by the prevailing turbulent economy. The report covers the opinion of industry experts and key vendors in the outsourcing market.

As more companies are realizing the benefits of outsourcing in terms of transforming their business apart from reducing operational cost, the demand for BPO remains intact. According to the report, reduction in the operational cost and wide adoption of virtual technologies by global BPO market is the reason for the anticipated growth.

As cloud computing is gaining its pace in the business world, BPO companies in large are adopting the technology as a service delivery platform. They are moving widely to desktop virtualization and server virtualization. With the increased usage of desktop virtualization, the companies can reduce their hardware and software costs and spend less on IT support and its administration. On the other hand, Server virtualization is helping these companies in sharing their physical servers over a network. Server virtualization is already a popular trend among the BPO companies and desktop virtualization is on the process of carving their position in the market, claimed the report. The report also forecasts that server virtualization will be a top priority for BPOs in coming years and adoption of virtual technologies by BPO firms will increase in the period 2011-2015.

The research firm has also reported that there is an upcoming trend among the vendors to automate their operation as BPO buyers are increasingly becoming vigilant about IT capabilities of their service providers. Moreover, automation process is enabling the outsourcing companies to reduce their operational cost and to build a competitive edge in the market. Analysts have found that the industry is in the process of integrating new software’s that will help them to save time in extracting data from both internal and external sources.

The report stress that the change in the pricing model of the services by the vendors such as pay per service pricing is also another factor that contributes to the growth of the industry. Further, report forecasts that increased attrition rate and shortage of talent will be the challenges that will pull back the industry. According to the report, the dominant players in the industry are IBM Corp., Xerox Corp, HP Co, and Convergys Corp.

You can get more information on the report from the following link.

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