Australian BPO to Grow by 60% to Reach $3.84Bn in 2010 – IDC

According to a white paper released by IDC for Accenture, business process outsourcing (BPO) in Australia is expected to increase by about 60 percent from USD 2.387 billion in 2006 to USD 3.84 billion in 2010, reflecting a CAGR of 12.4 percent. This growth is likely to be attributed to the increase in outsourcing in the areas of HR and training, finance and accounting, procurement, and customer care.

Among the key findings, the HR services market in Australia is estimated to grow at a CAGR of 9 percent to reach USD 1.591 billion by 2010, while finance and administration outsourcing will grow at a CAGR of 12 percent to reach USD 2.47 billion in 2010. In addition, the customer care segment is expected to grow at a CAGR of 15 percent to reach USD 833 million by 2010. However, procurement outsourcing by Australian firms is expected to grow at a CAGR of 18 percent to reach USD 354 million by 2010.

HR BPO in Australia has become mature as many HR BPO deals encompass high-end services including recruitment, workforce management, and learning. Growth in finance and administration outsourcing in Australia will primarily be driven by compliance and regulatory mandates.

The study also cited that BPO in Australia is still not mature as compared to the American and European countries. According to Aprajita Sharma, an outsourcing and BPO research manager at IDC Australia, a majority of BPO deals in Australia pertain to single function arrangements rather than complex end-to-end process deals. Sophisticated deals are, however, more prevalent in the overseas locations.

source: globalsourcingnow