Spending on BPO is forecast to achieve the highest growth in 2019: Gartner

According to Gartner, Inc. spending on business process outsourcing (BPO) is forecast to achieve the highest growth in 2019, at 14.4 per cent year-on- year. In a recent statement, Gartner said this forecast is in line with the recent trends as it added that end-user spending on IT services in India is on track to total nearly $15 billion in 2019, an increase of 9.8 per cent from 2018. In the ongoing year, end-user spending on IT services in India will represent 59 per cent of total end-user spending on IT services in emerging Asia/Pacific, and it is on track to reach 60 per cent in 2020. 

“High GDP growth rates are driving local organisations to increase their investment in infrastructure, applications and digital initiatives, which are increasingly moving to the cloud. Nontraditional sectors, such as logistics and transportation and manufacturing, are also experiencing healthy growth rates, and their business models are centred on investments in IT,” said Arup Roy, research vice president at Gartner.

Flexible workplaces

Collaborative spaces are having a real impact on the concept of workspaces and therefore, the economy. WeWork has published its Global Impact Report which has found a greater democratisation of neighbourhoods is happening. Intensive urbanisation and growing population density in a few areas have made the central business districts of metropolitan India practically inaccessible over the past two decades, especially in cities such as Mumbai, Delhi and Bengaluru.

The report found that 76 per cent of WeWork members in Mumbai, 74 per cent in Bengaluru and 67 per cent in Delhi and did not work in the neighbourhood prior to joining WeWork. As commercial real estate become more expensive, flexible workspaces are democratising access by reducing the prohibitive barrier of price. This is re-injecting vibrancy to these locations and enabling businesses and individuals to benefit from proximity to business areas.