Technology research giant Gartner has released a series of estimates predicting the worldwide growth rates of Business Process Outsourcing (BPO). According to their report “Forecast Analysis: Business Process Outsourcing, 2010-2015, 2Q11 Update”, Gartner now calculate the BPO market will grow by 6.3% worldwide during 2011, slowing to 5% in 2012.
Cathy Tornbohm, research vice president at Gartner commented on the report’s findings saying, “Emerging markets are faring far better and, generally, multinational companies continue to look to BPO as a means both to reduce costs and to buoy their business operations during the protracted return to a growth environment. We also see an increase in transaction volume, especially in payroll, recruiting, accounts payable, and customer data analytics and knowledge process outsourcing (KPO) activities.”
Tornbohm was speaking in reaction to a weaker growth prediction for the North American region which is traditionally the world’s largest. Gartner put North American growth at just 3.8% which has had a negative effect on the total worldwide growth estimate.
The Western Europe market is expected to see continued demand from businesses for outsourced services in the CRM and finance and accounting domains. Gartner predict an annual growth rate of 8.9%, well above that of North America, but also lower than could be expected due to various cultural barriers slowing uptake.
The continued growth of the Asia/Pacific market however continues to outstrip expectations with BPO growth estimated at 17.9% in 2011 alone. Gartner have noted that almost every process which can be outsourced will grow in demand throughout the region until at least 2015, with a heavy demand for financial and accounting services and billing processes.
Latin America Business Process Outsourcing is also expected to grow at a healthy 14.7 percent as local subsidiaries of global corporations begin rollouts of integrated systems, causing a knock-on uptake by domestic businesses. Local labour rates remain relatively low in Latin America slowing uptake of BPO, although major investment by service providers looks set to change this situation.
Overall, Gartner suggest that the future growth of BPO looks relatively healthy in the coming years.
October 6, 2011 in
BPO, Business Process Outsourcing, Gartner, KPO