The Business Process Outsourcing (BPO) market in the Asia Pacific (APAC) region grew by 18% in Q3 and increased by 178% from last year’s figures, according to technology research and advisory firm Information Services Group (ISG).
This took place while the managed services in the region dropped by 40% to US$575 million from Q2’s US$929 million and the as-a-service market increased by 62% quarter-on-quarter to a record US$3.1 billion.
Meanwhile, IT outsourcing recorded an annual contract value of US$405 million — a 51% decline from Q2.
The research and advisory firm also noted that the global BPO market surged to 32% to a record US$2.3 billion in the third quarter of the year.
ISG President Steve Hall said that the demand in the outsourcing market is a “real structural shift” as businesses “accelerate their digital transformation strategies, modernize their legacy environments and move to the cloud.”
Hall added that this trend is forecasted to continue in the future “even against some economic headwinds.”