This year will be the year in which Business Process Outsourcing (BPO) takes "massive strides" in the UK, rapidly catching up with the IT outsourcing market, says the National Outsourcing Association (NOA).
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In its annual survey of upcoming trends among NOA board members, the NOA found that 2007 will also see the continued rise of the standardisation of BPO products, as the NOA has found that users are increasingly refusing to consider non-industry standard solutions.
Service delivery based on ITIL and programme and project management standardisation reduces risks for users, as they gain increased confidence in the supplier if the supplier can demonstrate that they follow and deliver through industry best practice standards, said the NOA.
More predictions from the NOA’s annual sourcing predictions include more outsourcing contracts being judged by soft standards, with a greater focus on the outcomes of the contract and less focus on the process (as these practices are moving to a greater degree of standardisation).
In addition, said the NOA, France and Germany are catching up. The NOA predicts that in 2007 the combined markets of France and Germany will overtake the UK outsourcing market. The US outsourcing market is likely to slow in 2007.
In some sectors, there will also be greater regulatory pressures on firms. The MiFiD regulation is one example in the financial services industry, which is an attempt to create a pan-European, unified, competitive and transparent market.
Nigel Roxburgh, NOA research director, said, "Turning to ITO and BPO service providers for assistance is one option that many organisations will evaluate and adopt in order to comply with new regulations, especially MiFiD, which comes into force in November 2007."
The NOA also says that outsourcing firms from China and other countries will move into the UK market, following the success of Indian firms.
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