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Emergence of mid-market in Business Process Outsourcing (BPO)

February 2007
Richa Bansal, Phil Fersht, Saurabh Gupta
ID: ERI-2006-1-W-0146
9 pages


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Executive Summary

The Business Process Outsourcing (BPO) market continues to be dominated by large-sized buyers, but the mid-market is starting to emerge.

Net-net, organizations today operating on a global footing need to take full advantage of the lower-cost talent made available through increased globalization, better technology offered by today's outsourcing suppliers, and the outsourcing delivery acumen demonstrated by a rapidly maturing supplier base.

Originally a market for the mammoth globals, BPO delivery models are now approaching a level of maturity and scale that can accommodate medium sized organizations. Further, as the BPO value proposition becomes more established and accepted by organizations and common standards emerge for BPO execution, the risks associated with outsourcing are diminishing.

The BPO concept is becoming an increasingly attractive proposition for midmarket organizations to create business value by:

  • Achieving significant bottom-line savings
  • Increasing their ability to focus resources on core business objectives
  • Taking advantage of the business and technology value of engaging with third-party suppliers

Smart BPO suppliers are quickly recognizing a major business opportunity opening up in the mid-market and several are taking steps to provide midmarket BPO offerings.

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