BPO contracts in APAC up 32% in Q1
SYDNEY, AUSTRALIA — Business Process Outsourcing (BPO) contracts in the Asia Pacific (APAC) region rose 32% to US$182 million in Q1 2023.
In its Asia Pacific ISG Index, research and advisory firm Information Services Group (ISG) revealed that overall managed services in the region by 64% in Q1, sealing 57 contracts within the first three months of 2023.
IT outsourcing — the other segment under managed services — soared by 74% to US$643 million as companies pay close attention to their digital transformations.
Among Asia Pacific countries, Australia and New Zealand (ANZ) generated the best quarterly performances since Q4 2021, posting a total of US$483 million of managed services ACV in Q1 2023.
India and South Asia were up 32% year-on-year, posting its fourth straight quarter of managed services ACV over $100 million, the first such streak since 2012.
Meanwhile, Southeast Asia and Japan began the year with managed services ACV down more than 25 percent each from the prior year.
Overall, this quarter, commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more in APAC went above US$4 billion again.
ISG APAC Partner and Regional Leader Scott Bertsch said, “It’s good to see the market above $4 billion again and to see the return of sequential growth after four straight quarters of declining results.”
