Asia-Pacific outsourcing services hits new record-high
Asia-Pacific (APAC) region’s outsourcing services market surged in the second quarter of 2021, recording the best quarter in two years, according to new data by technology research and advisory firm ISG (Information Services Group).
The APAC outsourcing market has a year-on-year increase in annual contract value (ACV) of 87% during last the three months, to a record US$ 929 million.
According to the analyst firm’s latest data, IT outsourcing (ITO) in APAC reached a record US$ 800 million of ACV during the quarter, up by 80%. Meanwhile, Business Process Outsourcing (BPO) increased by 148%, to US$ 129 million.
Steve Hall, partner and president of ISG said, “The global market today is driven by two mega-trends: the move to the cloud and digital transformation. COVID accelerated those moves by three to five years.”
ISG foresees a 21% growth in cloud-based services (IaaS and SaaS) globally in 2021 from an 18% growth forecast last quarter. The firm is also increasing its prediction for outsourced services growth to 9%, up from its prior forecast of 5%.
