Gartner predicts substantial growth for India and China in the BPO sector by 2015, primarily due to the rise in demand for offshore BPO services in sectors like customer management, accounting, banking, and finance. HR outsourcing is also on the rise, apart from billing BPO services and supply management BPO.
Gartner’s report further informs that scalability, procurement, as well as application of enhanced technology, and improved quality of services, are the key drivers responsible for the present and future escalation of business processing outsourcing in the Asia-Pacific region. Emerging trends further forecast a 5 percent rise for offshore outsourcing in India in 2012, especially for the top BPO companies.
However, business process outsourcing is receiving mixed responses from developed countries which, incidentally, is affecting the growth curve to a small extent. According to Cathy Tornbohm, research vice president, Gartner, “While growth remains strong in developing economies, the United States, the world’s largest BPO market, presents a mixed picture for the global market”. She further added, on a positive note, “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”.
Outsourcing service providers in India are expected to enjoy a major rise in the IT-BPO spending growth by about 6.5 percent by 2013 according to NASSCOM. At the same time, positive escalation of global outsourcing and revenue growth have fueled employment opportunities, registering a 10 percent employee growth in 2011. BPO services in India are in high demand even in the domestic sector that has seen a steady growth of 16 percent within a year. Voluminous transaction processing such as payroll, customer data analytic, accounts payable as well as recruiting is increasingly being outsourced, thereby changing the dynamics of the outsourcing segment in the Asia-Pacific region, especially India.