New prospects have emerged for the outsourcing sector in 2013. This has been mainly due to the fundamental work carried out in this sector in 2012. The results of ITO BPO growth 2012 have given impetus to positive outcomes in 2013. The BPO industry had witnessed a rewarding year in 2012. The annual contract value (ACV) came to an amount of $1.4 billion, which represented a 133% increase with respect to 2011. The majority of deals covered during the ITO BPO growth 2012 were contracts with regard to industry-specific outsourcing operations and contact centers.
Global players usually leverage the convergence of BPO and ITO, and outsource information technology operations and other business activities to the same service provider. For instance, a company may outsource enterprise resource planning (ERP), finance and accounting processes, and finance applications to the same service provider. Several advantages exist for this model of outsourcing. In the first instance, enterprises had to deal with only one service provider if any issue arose. In addition, outsourcing BPO and IT simultaneously brought in quicker results, and identical contract structures were possible, thereby leading to an inexpensive model. This system has made a positive impact on ITO BPO growth 2012.
Outcomes of ITO BPO growth 2012
The results for ITO BPO growth 2012 show that most of the countries have carried out successful ventures in the outsourcing sector. In 2012, the Australia/New Zealand (ANZ) market had declined, which had been beneficial to South Asia and India. The ANZ market fell by 40% and stood at $690 million for the year 2012. Thus the South Asian region went ahead to become the largest outsourcing market during this period. In fact, the Asia Pacific market had recorded a high growth with an ACV of $3.1 billion, which was an increase of 55% when compared to 2011.
Business process outsourcing (BPO) has continued to gain momentum with fresh prospects emerging for the industry in 2013. With more outsourcing buyers jumping into the fray, and new ventures being taken up, the field has been witnessing a great deal of activity at present. The groundwork done towards ITO BPO growth 2012 has proved to be an uplifting factor for the outsourcing sector in 2013. There have been subtle changes taking place in the industry, but they have been bringing in significant impacts step by step.
The shift to global models such as multi-sourcing service delivery systems, IT service commoditization and leverage of labor arbitrage has made prominent effects on the outsourcing sector. Emphasis on these models is likely to propel the BPO industry to higher levels of achievement.