Press Release

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

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

Members of the media can register for the event by contacting Sony Shetty, Gartner PR on +91 9820900036 or

.Additional information from the event will be shared on Twitter at and using #GartnerSym.

Upcoming dates and locations for Gartner Symposium/ITxpo include:

October 3-5, Tokyo, Japan:

October 10-12, Goa, India:

October 21-25, Orlando, Florida:

October 29-31, Sao Paulo, Brazil:

November 5-8, Barcelona, Spain:

November 12-15, Gold Coast, Australia:

March 5-7, 2013, Dubai, UAE:


About Gartner

Gartner, Inc. (NYSE: IT), is the world's leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We're trusted as an objective resource and critical partner by more than 15,000 organizations in more than 100 countries—across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit

Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.