Asian BPO sector to generate 6 million new jobs

Sufia Tippu
Sunday, 02 July 2006 17:21

IT Industry - Market

Asian business process outsourcing (BPO) industry is expected to grow at the annual rate of nearly 14% till 2008, generating six million new jobs by 2015, according to the United Nation Development Program’s (UNDP) Asia-Pacific Human Development Report 2006, released in Phnom Penh recently.
India accounts for over 40% of the global BPO market which has grown phenomenally from $570 billion in 2002 to an estimated $1.2 trillion in 2006.

India’s dominant position has meant that services account for nearly 26% of South Asia’s exports. Within services, business process outsourcing and short-term migration emerge as the most important segments.

Of the top ten BPO destination in the world, five are in Asia. After India, other major Asian providers are China, Philippines, Malaysia, Thailand, and Vietnam.

The 3000-odd educational institutions in India train more than 200,000 software professionals and an equal number of non-engineering English-speaking graduates every year.

Labor shortages in Western Europe and the US on account of their ageing populations add to provide Asia, particularly India, an edge. And, Asia’s advantage lies in its growing pool of highly skilled, low cost workers.

The employment possibilities from the BPO industry in the future seem immense. An additional advantage that outsourcing has is the age and gender neutrality which draws on the wider social spectrum when it comes to employment.

According to the report, the Asian export of BPO services has also advanced in terms of technology. The services provided include information technology functions, telemarketing, technical back office processing, financial analysis and risk management services.