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3 August 2009

Asia Pacific BPO market to recover in 2010

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The business process outsourcing (BPO) market in Asia Pacific excluding Japan (APEJ) is expected to recover next year when companies seeking to transform their businesses will increasingly turn to the BPO model, a Philippine daily reported.

The Manila Bulletin quoted an analyst firm IDC’s latest report as saying that BPO services providers are currently ironing out platform-based services (Platform BPO) offerings to suit current market conditions and are doing away with the traditional lift and shift business models.

Given these movements in the market, IDC said it expects to see long-term market growth in the APEJ BPO market starting 2010.

The domestic markets in the emerging economies are particularly well positioned to see rapid growth between 2009 and 2013, according to the research firm.

Suchitra Narayan, research manager for IDC’s Asia Pacific IT services research, said the BPO market, especially Platform BPO, will see increased adoption that will be accelerated, to an extent, by the current economic downturn.

“The value-add brought by Platform BPO such as standardisation, scalability, economies of scale and pay-as-you-use functionalities are areas that fit well in the CFO’s agenda in today’s market,” Narayan said.

IDC said there is a need to not only optimise infrastructure, but also to re-think the strategic impact of individual business processes. “Anything that is a core process will be retained and all non-core processes will be considered for outsourcing,” it said.


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