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Nov112011

BPO market in western Europe remains a solid growth area

Despite a mixed outlook globally, the business process outsourcing (BPO) market in western Europe remains on a solid growth trajectory.

Research from Gartner projects the worldwide BPO market will expand 6.3 per cent this year and five per cent in 2012. The western European market is forecast to exceed the market growth rate, with 2011 revenue set to spike 8.9 per cent in dollar terms.

The analyst claims it "does not see a major wave of deals being brought back in-house" in Europe. Knowledge process outsourcing is singled out as a particular growth hotspot, especially in the UK.

Asia-Pacific is set to be the BPO market's top-performing region this year, with growth pegged at 17.9 per cent. North American market expansion is forecast at a rather more muted 3.8 per cent, while the fallout from the March earthquake and tsunami is expected to see the Japanese market decline 0.9 per cent.

Gartner research vice president Cathy Tornbohm said: "Emerging markets are faring far better and, generally, multinational companies continue to look to BPO as a means both to reduce costs and to buoy their business operations during the protracted return to a growth environment."

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