Gartner research forecasts worldwide BPO growth
It’s well-chronicled that outsourcing is growing worldwide, but how quickly are businesses making the move to hire overseas workers?
A new study by Gartner sought to answer that question, and it was found that the worldwide business process outsourcing market is expected to grow by 6.3 percent this year, with a huge jump in one market in particular.
The Asia-Pacific sector is forecasting growth of 17.9 percent, according to Gartner, and will center on rapidly growing economies in India, China and Australia.
“While growth remains strong in developing economies, the United States, the world’s largest BPO market, presents a mixed picture for the global market,” Gartner Research Vice President Cathy Tornbohm said in a statement.
Tornbohn continued to say that emerging markets are doing better as the global economy continues to show a slight recovery from the recession. Companies are continuing to turn to BPO as a way to cut costs, with customer management BPO, HR outsourcing, banking, financial and billing BPO services and supply management BPOs forecasted to show the strongest growth.
“We also see an increase in transaction volumes, especially in payroll, recruiting, accounts payable and customer data analytics and knowledge process outsourcing activities,” Tornbohn said.
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Latin America’s BPO market also is expected to see fantastic growth this year, with a 14.7 percent growth rate expected.
North American economies will show only modest growth in the BPO market, according to Gartner’s research. It’s estimated that the North American market will grow by 3.8 percent in 2011.
“Key vertical markets poised for industry-specific BPO growth through 2014 in North America are retail, healthcare, transportation and utilities,” Gartner said. “Within horizontal sectors, dynamic growth is expected for customer selection in the customer relationship management and human resources domains.”
Japan’s market showed negative growth on the heels of the Japan disaster, and is forecasted to shrink 0.9 percent in 2011.