Global Industry Analysts: BPO To Spike By 2015
February 28, 2011
According to a new report by Global Industry Analysts Inc., the global bpo market will go beyond $930 billion by the year 2015.
Essentially, there was a restructuring stemming from the recession and financial services firms were slashing discretionary spending along with plans for expansion. Subsequently, outsourcing contracts were put on hold for about 9 months. Some key sectors were impacted by the recession because clients from the BPO segment were not forthcoming with extended contracts.
The companies that were most affected were those that counted on outsourcing process of external service providers. As a result, business turned to cost cuts. Another factor affecting the BPO contracts are the currency fluctuations. The greenback has been drooping against rising currencies like the Indian Rupee for a while now.
Taking a look at the recovery period, analysts say that the BPO segment is going to grow the fastest in Brazil, Russia, India and China – popularly known as the BRIC countries. BPO is also expected to transform from the voice-based services to non-voice, industry specific processes.
Some of the new areas that will receive more attention are business intelligence services and customer relationship management.
Industries like healthcare and utilities will adopt BPO at a more rapid pace in the near future as opposed to financial services and public sector markets. Currently, most of the revenues for BPO come from Europe and the U.S. The recession has clearly hit all segments of the U.S. economy and the outsourcing sector has responded as a means of cost savings for companies.
A couple of factors that have affected the outsourcing trend are pay cuts, recession and a freeze on hiring. Moreover, a move toward enhancing the overall business efficiencies are also a major driving factor for outsourcing contracts. The emphasis is still on cutting risk and increasing product development.