The global information technology and business process outsourcing market will end 2009 with total revenues of $373 billion, 14.4 per cent higher than the $326 billion recorded in 2008.  India and China will remain at the top of the list, with expected revenues amounting to $48 billion and $28 billion, respectively.

India would have 44.8 per cent of the total outsourcing pie and China 25.9 per cent, according to Canadian-based ICT research and advisory firm XMG Global. The growth rate for 2009 will be, however, less than the 19 per cent that the industry recorded in 2008 over 2007, XMG said in its annual year-end prediction of where the offshoring and global outsourcing industry will finish.

“The market share of India is similar to 2008 and has mostly to do with the Satyam accounting adjustments and the shifting of work to other offshore countries. In other words, we are seeing new levels of normalcy in which the recession has provided the opportunity to rationalise and shift work to offshore destinations other than India,” XMG Global’s Senior Analyst, Mr Vincent Altez, said in the report. (more…)

More business process outsourcing (BPO) service providers in India will exit the market in coming years, as it is difficult for them to 
stay afloat in the current form due to the slowdown, according to a study released here Wednesday.  “One-quarter of the top business process outsourcing (BPO) service providers will not exist as separate entities by 2012,” said the study by IT research and advisory firm Gartner.

Market exit, acquisitions and the ascent of new vendors will rearrange the BPO provider landscape in the coming years, it said. “As providers are exposed to the economic crisis, loss-making contracts and an inability to adapt to standardised delivery models, many will struggle to survive in their current form,” said Robert H. Brown, research vice-president of Gartner.

“Some will be acquired and some will exit the market completely to be replaced by dynamic new players delivering BPO as automated, utility services,” he added. (more…)