UK BPS market outlook more optimistic

Our newly published UK Business Process Services Market Trends and Forecasts 2013 report, paints a more optimistic outlook for the UK BPS market over the next few years.

In 2012, the UK BPS market bounced back from a depressed recent period, which saw growth rates of just 3.3% and 3.9% in 2010 and 2011. Taking a significant upward turn, 2012 added three percentage points of growth to reach 6.9%. This was driven predominantly by increased activity in private sector markets like insurance, retail, communications and life sciences, as well as UK central government.

We are now forecasting compound annual growth of 6.9% between 2012 and 2016, compared to 6.1% for the period between 2011 and 2015. Taking into account CPI inflation, this still equates to healthy 4% growth over the same period.

This improving outllook for BPS is against a continuing backdrop of UK Government spending cuts and the on-going Eurozone crisis. Nonetheless, better economic news in the UK since the start of 2013 points to a more positive outlook at home, which should benefit the private sector in particular.

We expect to see double-digit growth rates from platform BPO and significantly higher growth from emerging Business Process as a Service (BPaaS) as organisations seek more industralised and automated alternatives to straight lift and shift. Nonetheless, opportunities for non-platform BPO remain robust, and will continue to present opportunities for suppliers.

Subscribers to TechMarketView's BusinessProcessViews research service can now read our anchor report, UK Business Process Services Market Trends and Forecasts 2013 and download the accompanying XL forecast data and charts here.

Posted by John O'Brien at '17:53' - Tagged: bpo   bps