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Mumbai, India, September 25, 2012 View All Press Releases

Gartner Says Asia/Pacific BPO Industry To Reach $9.5 Billion In 2016

Analysts Will Examine Key Issues Affecting The Indian IT Industry at Gartner Symposium/ITxpo, October 10-12, Goa, India

The Asia/Pacific (excluding Japan) business process outsourcing (BPO) market is forecast to reach $9.5 billion in 2016, up from $5.9 billion in 2011, according to Gartner, Inc..In 2012, BPO in Asia/Pacific is on pace to total $6.45 billion.

“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,” said T.J. Singh, research director at Gartner. “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.”

The largest BPO market in Asia/Pacific in 2011 was Australia, with a market size of more than $4.63 billion, over 3.5 times larger than India ($1.26 billion), the second-largest consumer of BPO services. The fastest-growing BPO markets within Asia/Pacific will continue to be led by China and India. By vertical industry, 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.

Asia/Pacific continues to present service providers with lucrative high-growth and profitable markets that are still relatively underdeveloped and untapped. Even during these trying economic times — the U.S. and European economic malaise — buyers in Asia/Pacific are still grappling with issues such as revenue growth, market share gains, scalability, quality of service and better cost management. Some negative impacts may surface as BPO grows across the region, including higher wage inflation and attrition, as demand for talent in the domestic market competes with offshore demand from the U.S. and Europe.

The BPO market consists of four segments that break down into many distinct submarkets. These four segments include:

  • Customer management (sales, marketing and customer care)
  • Enterprise services (HR, finance and accounting [F&A], operations and payment services)
  • Vertical services (vertical-industry-focused processes, such as mortgage services and credit card services for the banking sector, claims processing for insurance, and billing services for telecommunications)
  • Supply management services (logistics, procurement and warehousing

“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, “said Mr. Singh.

Additional analysis is available in the Gartner report: “Market Trends: How to Profit From BPO Services in Asia/Pacific, 2012”, which is available on Gartner’s website at http://www.gartner.com/resId=2036515

Gartner analysts will examine key issues affecting the Indian IT industry at Gartner Symposium/ITxpo.

About Gartner Symposium/ITxpo

Gartner's annual Symposium/ITxpo events are key components of attendees' annual planning efforts. IT executives rely on Gartner Symposium/ITxpo to gain insight into how their organizations can use IT to address business challenges and improve operational efficiency.

Additional information for Gartner Symposium/ITxpo in India, October 10 – 12 , is available at www.gartner.com/in/symposium.

Members of the media can register for the event by contacting Sony Shetty, Gartner PR on +91 9820900036 or sony.shetty@gartner.com

.Additional information from the event will be shared on Twitter at http://twitter.com/Gartner_inc and using #GartnerSym.

Upcoming dates and locations for Gartner Symposium/ITxpo include:

October 3-5, Tokyo, Japan: www.gartner.com/jp/symposium

October 10-12, Goa, India: www.gartner.com/in/symposium

October 21-25, Orlando, Florida: www.gartner.com/us/symposium

October 29-31, Sao Paulo, Brazil: www.gartner.com/br/symposium

November 5-8, Barcelona, Spain: www.gartner.com/eu/symposium

November 12-15, Gold Coast, Australia: www.gartner.com/au/symposium

March 5-7, 2013, Dubai, UAE: www.gartner.com/technology/symposium/dubai/

 

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