Sunday, December 6, 2009

Status of Global BPO Industry

Since July 2008 till November this year, 7 of the large global BPO firms spent over $1.2 billion on acquisition. Across the globe BPO industry is witnessing consolidation as companies with cash in hand find valuations attractive. Focus of global BPO firms has shifted from America to Europe, Australia and Asia Pacific. Shrinking deal size and lower billing rates are a major challenge for global BPO industry. Domestic BPO market in most emerging countries is growing at faster pace. Tier II cities in emerging/low cost countries are becoming attractive destinations for large to mid size companies for outsourcing, Chengdu (China) is a classical example of this, over the last 12 months it has been able to attract leading companies from across the globe for sizeable amount of outsourcing activities.

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