Research Firm Gartner projected worldwide BPO Market to grow by 6.3% Globally

Study published by market research firm Gartner projected worldwide business process outsourcing (BPO) market to grow by 6.3% globally and 17.9% in the Asia-Pacific during the year 2011. Gartner report pointed out higher demand for services related to customer management (CM) BPO, HR outsourcing, banking, financial and billing BPO services and supply management BPOs through 2015. The report highlighted that most growth will centre on the key regional economies of India, Australia and China.

Gartner identified scalability, the infusion of new processes and technology as the key drivers for the outsourcing business in emerging economies within the region.

Gartner estimated that North America's BPO market will grow by 3.8% in 2011. Key vertical markets poised for industry-specific BPO growth through 2014 in North America were identified to be retail, healthcare, transportation and utilities. Within horizontal sectors, dynamic growth is to be expected for customer selection in the customer relationship management (CRM) and human resources (HR) domains.

In Western Europe, Gartner estimated that the BPO market will grow by 8.9% in US dollars terms in 2011 due to healthy demand for services relating to customer management, finance and accounting and human resources. Gartner observed challenges of language, labour laws and trade unions and the lack of labour arbitrage benefits as limiting the growth of BPO business in continental Europe.

Japan's BPO market (expressed in yen terms) was estimated to decrease by 0.9% in 2011 while Latin America's BPO market is to grow by 14.7% in US dollar terms in 2011, despite the slow growth of the region's IT services industry in 2009.