Tuesday, 10 December 2019 19:02

APAC business process outsourcing market set to reach US$120.4 billion in 2023 Featured

By

The increasing number of contact centres in the Asia Pacific is set to turn the region into the second largest Business Process Outsourcing (BPO) market globally, behind North America, according to a new report.

Asia-Pacific (APAC) continues to be a vibrant market for business process outsourcing (BPO) space, according to analyst firm GlobalData, which estimates the market will grow at a compound annual growth rate (CAGR) of 10% between 2018 and 2023 to reach US$120.4 billion, behind North America with a market valued at US$152.5 billion.

Sunil Kumar Verma, Lead ICT Analyst at GlobalData, comments: “Outsourcing of specific functions or processes with a view to focus on cost-optimization, enhancing flexibility to scale up as per business requirements and re-focusing on core business activities by large as well as specialist companies will be the key drivers of the BPO market in the APAC region.”

GlobalData says China, Japan, India, Australia and South Korea will be the five largest BPO markets within the APAC region, accounting for more than 80% of the overall market share by 2023.

“This will be primarily be driven by the increasing number of global companies expanding their base in the region and partnering with agile business partners to provide them with the required services,” says Verma.

The human resources BPO segment is set to grow at a CAGR of 15% during the forecast period and continue to be the largest segment with 32% share in the overall BPO market in the region.

“With increasing process standardisation, productivity gains due to digitalisation and workflow automation, the extent of outsourcing by enterprises might not be limited only to back office operations in the future,” said Verma.

“It will make inroads into the front-office and middle-office operations as well. Enterprises along with business partners might collaborate to establish mutual service centers such as Center of Excellence (CoE). However, security and privacy will continue be the major hindrance for such initiatives.”

CHIEF DATA & ANALYTICS OFFICER BRISBANE 2020

26-27 February 2020 | Hilton Brisbane

Connecting the region’s leading data analytics professionals to drive and inspire your future strategy

Leading the data analytics division has never been easy, but now the challenge is on to remain ahead of the competition and reap the massive rewards as a strategic executive.

Do you want to leverage data governance as an enabler?Are you working at driving AI/ML implementation?

Want to stay abreast of data privacy and AI ethics requirements? Are you working hard to push predictive analytics to the limits?

With so much to keep on top of in such a rapidly changing technology space, collaboration is key to success. You don't need to struggle alone, network and share your struggles as well as your tips for success at CDAO Brisbane.

Discover how your peers have tackled the very same issues you face daily. Network with over 140 of your peers and hear from the leading professionals in your industry. Leverage this community of data and analytics enthusiasts to advance your strategy to the next level.

Download the Agenda to find out more

DOWNLOAD NOW!

Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

VENDOR NEWS & EVENTS

REVIEWS

Recent Comments