December 4th, 2003
Business process outsourcing will grow
A final verdict released by research firm Gartner on Wednesday prophesized that by 2005, the number of enterprises that enter into new outsourcing relationships, will increase 30%, while the number of IT providers that claim outsourcing relationships, will grow by 40%. Through 2004, despite the potential human resource backlash, 80% of US executive boards will have discussed global delivery options, both nearshore and offshore. Out of these enterprises using global delivery models, 80% will act by increasing their people resources (nearshore and offshore), by as much as 30%.
Gartner predicts strong BPO growth in India, both captive as well as outsourced. The current global BPO market stands at $173 bil, which is expected to rise to $27.7 bil by 2007. Indian offshore BPO will grab $13.8 bil from the total, or approximately 49% of the pie. The boom is estimated on a Gartner survey, which reveals that 19% of companies in the US are planning to outsource in the next 24 months, as opposed to a meager 1% who are currently outsourcing.
Alex is a software engineer in the San Francisco Bay Area. ITFacts is created and updated by a group of statistics-obsessed individuals.
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