Global BPO Market to Reach USD 280.7 Billion by 2017
Driven by the need to cut operating costs through outsourcing of non-core processes, the global market for business process outsourcing (BPO) is forecasted to reach USD 280.7 billion by the year 2017.
The research report titled “Business Process Outsourcing (BPO): A Global Strategic Business Report” was announced by US-based market research firm Global Industry Analysts (GIA).
According to the report, outsourcing of business processes in non-traditional BPO segments, and the transformational approach towards outsourcing is likely to foster long-term growth in the global BPO market.
The United States and Europe dominate the global BPO market, as stated by the report. The increasing size and scope of the BPO industry is largely attributed to the growing desire of global businesses to address primary issues such as shortage of skilled personnel and rising operational costs.
Outsourcing is also emerging as a tactical approach for imparting value addition, flexibility as well as agility to organizations. Technological advancements, introduction of sophisticated platforms and software, and the emergence of newer media are also driving businesses to opt for services of specialist third-party service providers.
The report revealed that Finance and Accounting (F&A) outsourcing is expected to witness fastest growth among all horizontal segments.
The need to streamline costs and increase competitiveness is likely to drive organizations to seek outsourcing services, positioning F&A outsourcing as a vital constituent of the strategy to achieve the twin objectives.
Financial services, manufacturing, logistics and travel industries have been among the most active adopters of F&A outsourcing services. In the coming years, real estate and property management companies, IT firms, and medical and banking sector participants are also likely to seek F&A outsourcing services.
According to GIA, banking, insurance and financial services represent the largest end-use segment in the global BPO market. In the post recession scenario, the banking industry is expected to witness massive changes due to increased regulations. As a result, the trend towards outsourcing of processes such as cash management, custody, and treasury is expected to gain strength.
The need for outsourcing is also expected to rise in view of the integration of social and mobile technologies that are disrupting conventional branch banking operations. In the retail, media and manufacturing sectors, BPO opportunities are expected to grow due to the relatively lesser use of outsourcing in these industries.
Some major players profiled in the report include Accenture, Computer Sciences Corporation, Dell Services, HP Enterprise Services, Intelenet Global Services, Intelligroup, Keane, NorthgateArinso, SFN Group, Tata Consultancy Services, TriNet Group, and Unisys Corporation.
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