The sustained growth of the sector is driven by the need for businesses to continue to seek cost-cutting and operating e¢ciency initiatives. Many countries see the value of attracting BPO inward investment, as it provides opportunities for significant employment and the job profiles are becoming increasingly diverse and high value. In India alone – the world’s largest BPO market, more than three million people are employed within the sector; in the Philippines there are another million and rising. Based on robust demand it is estimated that the global BPO industry will grow by 6% every year over the next six years. With certain business sectors continuing to underpin activity levels we could witness growth on an even larger scale.
BANKS STRIVE TO ACHIEVE COST REDUCTION
In the Banking sector, where cost pressures are particularly acute, shared service centres continue to be a strong area of expansion – encompassing financial payment processing, human resources and procurement. Banks have been on this path for many years, and post Lehman the trend has accelerated significantly. The financial centres of London, New York, Singapore and Hong Kong are focusing on the front o¢ce trading, investment banking and fund management activity, whilst back o¢ce and even mid-o¢ce functions are being moved to cheaper delivery locations to oset costs associated with front end markets. Some of these are near-shore locations like Manchester or, New Jersey, whilst others are o- shore to Eastern Europe, India or the Philippines.