IT Services and BPO Market Projections in 2013

Highlights from HfS Research's IT Services and  BPO Market Size and Forecast 2013-2017.

Market Figures 

BPO is seen to grow by 5.1 percent in 2013 with a CAGR of 6 percent to 2017. The industry is boosted by F&A (7 percent growth) and HR (5.6 percent growth). The two fastest growing sectors are fueled by clients who are expanding their scope and services. CRM follows slowly behind, but its projected to pick up by 2014 as clients buy more valued added services for social media/analytics.

IT Services is seen to grow by 3.5 percent with a CAGR of 4.7 percent to 2017. The Professional Services market is seen to level out as North America recovers. ADM is expected to grow at 5.6 percent as the market becomes more prominent in Europe, the Middle East and Africa.

Sourcing Approaches Mature

Organisations are learning to become more mature in their approach to outsourcing and shared services. Two thirds of organisations are shifting their focus from cost to value. There is a demand to standardise operations, which in turn is driving the market for platform based solutions.

On the other hand, outsourcing clients are benefiting from "cost reduction and efficiency", but not "innovation, analytical capability and skilled talent to define business outcomes". Service providers have to step up and invest in talent to help their clients go beyond labour arbitrage.

Click here to download the rest of the report.