Offshore BPO market to grow 38% in 2003: Gartner

href="http://www.telegenisys.com/index.html">Offshore is the latest chartbuster worldwide. Offshore business process outsourcing (BPO) will swell to a $1.8 billion market this year, according to a latest report by Gartner. This figure In fact represents a nearly 40% increase over 2002's total. By the end of 2003, offshore BPO will stake a 1.5% claim in the entire BPO market, according to the analysts
According to Rebecca Scholl, principal analyst with Stamford, a sourcing group, "the growth in offshore BPO during the next couple of years will be significant, as a result of contract expansions and new adopters�. Scholl added that firms have been circumspect when it comes to taking up overseas BPO services, a fact, which will make for a steady but more temperate market compared to 2002.
Gartner analysts predict that India will rake in about $1.2 billion from BPO in 2003, up a few notches from the roughly $1 billion in 2002 revenue, which should be great news for India. "Most of today's offshore BPO opportunity remains at the level of out-tasking a component of a business process rather than outsourcing an entire business process, and is mostly relegated to contact centers and back office transaction processing," Mr. Gartner research vice president Sujay Chohan said. Gartner says of 250 U.S. clients’ surveyed last spring, 1% are outsourcing BPO services offshore, and 19% are thinking about doing it within the next two years. "The use of outsourcing is expected to grow as the supply base matures and companies are more comfortable working with external providers based in offshore locations," said Debashish Sinha, principal analyst for Gartner's IT services group.
While at the moment it may seem that India is the best place for offshore BPO, and it can do no wrong from here, it is not the only place. Indian call center operators should keep in mind that at any given moment other English speaking destinations could give India run for their money. ‘But one thing is for sure that BPO is a truly global deliverable opportunity’, added Mr .Sinha.