The BPO Market is expected to expand at the health rate of 5.7 percent over the next four years, according to a study by Markets and Markets cited by P.K. Argarwal, the former CEO of TiE Global and former CTO of the State of California, in a post on the Professional Outsourcing Magazine web site.
What’s more, thanks to Obamacare, the health care BPO market is expected to grow at an even more dramatic rate of 6.9 percent, Argarwal noted. The health care BPO market in the United States is expected to grow to an impressive $141.7 billion by 2018, and the global BPO market will exceed $400 billion by 2021, the Markets and Markets report predicts.
Agarwal cites the growth of the cloud as the “game changer” that makes it easy for BPO vendors to expand their services quickly without significant capital expenditure. Even more importantly, that growth opens up a huge new market for BPO – the small and medium businesses that seek access to world-class processes that will allow them to become efficient and agile – and compete with larger companies on the same playing field.
However, Agarwal warns that BPO providers need to realize that these changes will result in both more competition in the BPO market and increased expectations on the part of potential clients. He adds that the BPO market could see consolidation over the next several years, with suppliers who haven’t prepared for the new business landscape facing loss of business or closure. But he adds that the growth of the small and medium business market could be a potential goldmine for BPO suppliers – if they’re in place to take advantage of it.