The business process outsourcing (BPO) market in Asia-Pacific, excluding Japan, is expected to total US$6.45 billion by this year and reach US$9.5 billion in 2016.
In a statement released Wednesday, market researcher Gartner said the region's BPO market was worth US$5.9 billion last year.
With the exception of Australia and New Zealand, the Asia-Pacific BPO market is still immature and relatively underdeveloped and underexploited, compared to other markets or regions. Hence, BPO service providers have opportunities to tap the lucrative high-growth and profitable markets within this region, said T.J. Singh, research director at Gartner.
He explained even in today's challenging economy, as seen in the United States and Europe, BPO buyers in Asia-Pacific are still grappling with issues such as revenue growth, market share gains, scalability, quality of service, and better cost management.
According to Singh, these buyers look not only at cost, but also scalability, quality, best-of-breed process and technology infusion, and improved service levels.
In Asia-Pacific, no single provider currently dominates in every type of BPO service, he noted, adding that very few can successfully demonstrate true regional or pan-Asia BPO capabilities for multiple processes.
The BPO service market in the region consists of a wide range of local, regional and multinational service providers. The Gartner analyst pointed out while the market is dominated by global and India-based service providers, there are also a number of fast growing regional and niche BPO service providers.
Australia was the largest BPO market in Asia-Pacific last year, accounting for around US$4.63 million which was over 3.5 times larger than, the second-largest market at US1.26 million. Gartner figures showed India and China still as the fastest growing BPO markets in the region.
In terms of verticals, banking, financial services, communications, government, technology, retail, travel and transportation continued to be the largest consumers of BPO services in Asia-Pacific, the research firm added.