Business process outsourcing of Business Process Outsourcing (BPO) World market

2014: Multi-Process HR Outsourcing

According to the report of Everest Group of the September, 2015 devoted many process to outsourcing in HR (Multi-Process HR Outsourcing), this field of outsourcing continued stable growth, having increased by 4% in 2014, and reached $ dollars 3.42 billion in the world. (MPHRO of service include consultation and administration of remunerations, outsourcing of personnel management systems, calculation of the salaries, selection and hiring of personnel, testing and training, etc.).

According to Everest Group, category of processes "Search and hiring of personnel" where hiring process outsourcing – enters (RPO – Recruitment Process Outsourcing) dynamically changes, according to a work market change, and grew by 13% for 2014, having reached the size of $1.7 billion of dollars.

2012: Market size is $21.2 billion (-3%)

2012 became not the most successful both for world, and for the European market of an autorsing. However, in comparison with a segment IT autorsinga, shown negative dynamics, the segment of an autorsing of business processes continues to grow.

According to Information Services Group (ISG)^[1], in the world market of an autorsing in the fourth quarter occurred 2012 insignificant decrease. These researches Global TPI Index for the respective quarter within which commercial transactions with the annual value of the contract are analyzed (annual contract value - ACV) from $5 million and demonstrate to it above.

According to them, the aggregate value of the concluded bargains in the last three months 2012 reached $4.8 billion that is 27% lower than the same period of 2011 and is 11% less than the third quarter 2012.

In general for 2012 the total volume of the signed outsourcing contracts was $21.2 billion that is 3% lower than total value of 2011. In 2012 the greatest contribution to "moneybox" of the market was made by mega-transactions (with an indicator of ACV from $100 million and above) and also a business process outsourcing segment. Besides, significant growth showed the market of the Pacific Rim.

In total for 2012 1006 contracts were signed that is 13% less, than in 2011, but nevertheless there is more median number of transactions calculated for the last 5 years. "Usually results of the fourth quarter exceed results of the third quarter, but in this situation it did not happen", - John Keppel, the president of ISG noted.

According to him, partly lowering of the market is in the fourth quarter explainable influence on world economy of presidential elections in the USA and Hurricane Sandy so October and November were the weakest months in 2012.

It is interesting also that all in the world market of outsourcing 8 mega-transactions in the fourth quarter 2012 and only 34 such transactions in a year were concluded, and the last indicator is maximum since 2006. Also the second year in a row about 25% of mega-transactions were concluded in emerging markets. However, the indicator of ACV for mega-transactions dropped by 50% in relation to the fourth quarter 2011 and for 24% in relation to the third quarter 2012, i.e. they fell in price. The calculated indicator of ACV in general for 2012 for mega-transactions grew by 7% in annual comparison.

The Segment of business process outsourcing (BPO) in the fourth quarter made $1.9 billion (-1% a year expression), but in general for 2012 this segment grew by 14% to $7.9 billion the Segment of IT outsourcing in the fourth quarter was equal 2012 to $2.9 billion (-37% in annual comparison), in general for 2012 it dropped by 11% to $13.3 billion. And it in spite of the fact that for 2012 650 contracts for IT an autorsing were signed that is record value, and such record is reached the second year in a row.

America (both Northern, and Southern) remained the largest regional market where for 2012 it was concluded transactions for the amount of $7.9 billion (-3% by 2011). In EMEA region the total volume of transactions reached $10.2 billion (-12% by 2011). The volume of the concluded bargains in the Pacific Rim was $3.1 billion for 2012 that is 55% higher, than in 2011.

2011: Forecasts of Gartner

The world market of business process outsourcing according to forecasts of Gartner company will grow by 6.3% in 2011 and for 5% in 2012. The attention of consumers to this model is especially warmed up in emerging markets where the companies expect high growth rates further.

According to Cathie Tornbokhm (Cathy Tornbohm), the analyst of research company, meanwhile the world's largest outsourcing market of business processes, the USA, shows uncertainty because of the adverse economic conditions which developed in the country recently.

At the same time in general the companies, especially multi-national, address this model to reduce costs and adequately to support business growth, she added. Growth of volume of transactions in recruiting, analytics of these clients and some other areas is especially noted.

By Gartner estimates, outsourcing market of business processes will grow in North America more slowly than world: in 2011 it will increase only by 3.8%. Retail, health care, transport and production will be key vertical areas for the regional market up to 2014. As for horizontal segments, the maximum growth is expected in segments of the choice of clients and CRM and also personnel management.

Outsourcing market of business processes in Western Europe will grow by 8.9% in 2011. Outsourcing of management of customer relations, financial statements and personnel management will be in special demand. In continental Europe outsourcing of payment transactions, especially with support of transactions between the countries and also outsourcing of contact centers and specific processes of type of banking will be in demand. At the same time the diverse language landscape, the specific labor law and labor unions complicate adaptation of many types of business process outsourcing in the region.

Market development of outsourcing in the Azitsko-Tikhookeansky region will remain positive: in 2011 it will grow by 17.9% in a dollar equivalent. Gartner predicts high demand on outsourcing of management of customer relations, personnel, financial statements, outsourcing of banking and financial services up to 2015 here. Growth will be concentrated in the key countries of the region, such as India, Astraliya and China. Growth of economy, implementation of best practices and technologies, acceleration of an output of services to the market and the purpose on service quality improvement will become key drivers. The Japanese market separately at the same time will decrease by 0.9% in 2011: here influence of March cataclysms is still felt.

In Latin America development of IT services happens not so quickly, but after all up to 2015 adaptation of business process outsourcing in the region will increase. First of all due to development here business of global corporations. In 2011 local market will grow by 14.7% in a dollar equivalent. Latin America will also receive considerable investments from global service providers who increase in the region the presence along with Asia and Eastern Europe.

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