BPO Market Growth: Part One
The global business process outsourcing (BPO) industry is on the path to recovery following the global economic recession that dented growth prospects in several industrialized nations including the U.S. As the recession affected all industry verticals, businesses adopted measures to contain costs and enhance profit margins - strategies that led to layoffs, recruitment freezes and pay cuts across various countries including the U.S.
The inability of BPO clients to forge long-term contracts during the recession further contributed to the downward slide in industry activity. In order to deal with economic adversities, several companies opted for outsourcing services thereby benefiting outsourcing hubs such as India and China.
The United States and Europe dominate the global BPO market, as stated by the new market research report on Business Process Outsourcing. 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.
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Outsourcing is also emerging as a tactical approach for imparting value addition, flexibility as well as agility to organizations, which enables them to respond effectively in a rapidly changing business environment. 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.
Finance & Accounting 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.
Come back tomorrow for Part Two of our story on BPO growth!
Edited by Kevin Scarpati