BUSINESS PROCESS OUTSOURCING MARKET ANALYSIS

Market Challenges And Opportunities

Global Business Process Outsourcing Market Drivers:

Rise in popularity of cloud computing to boost growth of the market

Management and back-office operations are crucial for any company. Several transactional processes such as application processing, order fulfillment, and collection and billing leads to accumulations of large amount of data in companies. This further creates demand for advanced back-office solutions for handling such large amount of data. As inclination toward adoption of cloud computing in business process outsourcing is increasing across several organizations, the global business process outsourcing market is likely to show robust growth in the near future.

Increasing shift to outsourcing services to accelerate the market pace

Business operations of a company are divided into core, critical, and non-core activities. Core activities are main competencies of a company that offer a strategic advantage, while critical activities need specialized skill-set. Non-core activities whereas are supporting operations that involve mainly relationship management between products and consumers. Customization of these activities is crucial for allocating resources properly to further ensure in-time service deliveries. For this, companies are increasingly shifting toward adoption of outsourcing services, which further expected to support growth of the global business process outsourcing market over the forecast period.

Global Business Process Outsourcing Market Opportunities:

Emergence and development of next-generation services to create growth opportunities in the global business process outsourcing market. Business process outsourcing provides business with the means of efficiently increasing profits and reducing costs. The advantages of novel technologies such as cloud computing, process automation, and social media among others is encouraging business to adopt BPO services. Thus, emergence of next generation services is further offering lucrative opportunities in the market.

Growing focus on multi-workflow scheduling is anticipated to generate multiple business opportunities in the global business process outsourcing market over the forecast period. In the early times, automated workflows were mainly adopted only by wealthy companies that could heavily invest in ERP and CRM systems. However, the cloud technology emergence has made automation possible for all types of organizations. With the adoption of this technology, companies began to leverage their power for automating the complex workflow process in order to obtain process integration. Business Process Outsourcing in recent years has significantly expanded, as the awareness about its benefits is growing in companies. This is further creating multiple opportunities in the market.

Global Business Process Outsourcing Market Restraints:

Increasing concerns around security to limit the market growth

The use of business process outsourcing services poses various threats. These services are vulnerable to security threats such as malware, data theft, or hacker attacks. Such hazards adversely impact value of a company, such as profit, shareholder value, or reputation. This in turn create hesitancy among consumers regarding adoption of BPO services. This factor is further expected to hinder growth of the global business process outsourcing market. However, product launch of advanced solutions with robust security by market players is likely to aid in growth of the market.

Diversity of process to obstruct the market growth

Different organization across different industries have varying business operations. These varying processes may require a system-to-system exchange, alteration of information, human interaction, or document creation. These processes are categorized as complex or simple to manage a considerable or limited transactions. Some of these processes can be time consuming requiring days, weeks, or even years, while other can be done within a second. Thus, such varying process may require different or multiple BPO services. This factor in turn limits growth of the global business process outsourcing market.