According to Gartner, the business process outsourcing (BPO) market in the Asia-Pacific region will increase from $5.9 billion in 2011 to $9.5 billion in 2016. The research firm estimates that in 2012, the BPO market in the region will reach $6.45 billion.
T.J. Singh, research director, Gartner, says, “The Asia-Pacific BPO market is still relatively underdeveloped and underexploited (with the exception of Australia and New Zealand) when compared with other markets or regions.”
He added, “This presents opportunities to BPO service providers that are willing to invest in the region. Key drivers for BPO buyers in Asia-Pacific are scalability, quality, best-of-breed process and technology infusion, and improved service levels. Cost continues to be a consideration in all deals. Asia-Pacific is an immature market for BPO services. No one provider dominates every type of BPO service, and very few BPO providers can successfully demonstrate true regional or pan-Asia-Pacific BPO capabilities for multiple processes.”
According to Gartner, the largest BPO market in Asia-Pacific region in 2011 was Australia. The BPO market in the country was valued at about $4.63 billion. In 2011, the Indian BPO market was worth $1.26 billion.
Gartner says that China and India will continue to be the fastest-growing BPO markets in the Asia-Pacific region. Banking and financial services, communications, government (both local and federal), technology, retail, and travel and transportation continue to be the largest consumers of BPO services in the region.
According to Gartner, Asia-Pacific continues to present service providers with lucrative high-growth and profitable markets that are still relatively underdeveloped and untapped. Even during the economic slowdown in the US and Europe, buyers in Asia-Pacific are still grappling with issues such as revenue growth, market share gains, scalability, quality of service and better cost management.
As per Gartner, the BPO market consists of four segments that can be divided into many distinct submarkets. These four segments are customer management (sales, marketing and customer care), enterprise services (HR, finance and accounting operations and payment services), vertical services (vertical-industry-focused processes, such as mortgage services and credit card services for the banking sector, etc) and supply management services (logistics, procurement and warehousing).
Singh, says, ?The BPO service market in Asia-Pacific (excluding Japan) consists of a wide range of local, regional and multinational (including India-based) service providers. Although the market is dominated by global and India-based service providers, there are also a number of fast-growing regional and niche BPO service providers.?
