The worldwide business process outsourcing (BPO) market is forecast to grow at a combined annual growth rate (CAGR) of 5.1% over the period 2011-2015, according to a report by TechNavio.
One of the key factors to drive growth is the considerable reduction in operational costs it offers while changing pricing models and shortage of talent could pose a challenge to the growth of this market.
The Global BPO Market 2011-2015 report includes a detailed analysis of the market and covers the Americas, and the EMEA and APAC regions including the market landscape and its growth prospects in the coming years.
According to the report the key vendors who domitate the market include IBM, Xerox, HP and Convergys while other leading vendors in the market include Accenture, AON, NCO Financial, Cap Gemini, Genpact, TCS, Stream Global Services, Wipro, WNS, Aegis, and Infosys.
TechNavio IT Services analyst said currently, the increase in the usage of desktop virtualisation and server virtualisation has been among the priorities of companies in the Global BPO market.
"Desktop virtualization enables firms to reduce hardware and software costs and requires less IT support and administration whereas server virtualization allows for the sharing of many physical servers such as application servers," the analyst added.
"Server virtualization is already on the uptrend in the market, with organizations affirming that it will be among the top data center investments in the coming years, although desktop virtualization is still to catch on."
Recently, the suppliers have altered their insight of IT in the BPO equation and there is a visible drift toward automating BPO operations through which service providers are able to significantly improve their sustainability in the market, according to the report.
Organisations are giving preference to building reusable service delivery platforms, scalability, and automations by using new software such as tools for automatic reconciliation which will utilise less time in integrating data from any internal or external source.
