Emerging Offshore Countries to Compete for $373 Billion Global Market Share

Emerging destinations like Egypt, South Africa, and Mexico are other possible locations for offshore outsourcing. Moreover, China and Vietnam continue to be viable hotspots for offshoring due to a commitment by their governments to build and develop local infrastructure. This weighs heavily on mature offshore destinations like India that are also experiencing price pressures.

Malaysia is another alternative offshore location that is viewed by analysts as an emerging market for business process outsourcing. Subsequently, Malaysia will be competing with the Philippines for market share. Outsourcing Malaysia, a group representing the industry's private sector and the government, the shared services outsourcing (SSO) sector in the country is growing at a rate of 30 percent annually.

The outsourcing growth in Malaysia is spurred by MNCs like DHL, HSBC, and Shell - these firms have established their outsourcing facilities in the country. Outsourcing Malaysia speculates that by 2012, the sector will expand to a whopping $2 billion and provide jobs for 300,000 workers.

Recent reports cite that the global IT and BPO outsourcing business will wind up 2009 with revenues worth $373 billion - that figure is 14.4% more that last year's figure of $326 billion. Incidentally, China and India top the list of global outsourcing market with revenues projected to be $28 billion and $48 billion respectively. ICT research, based in Canada revealed that India commands 44.8 percent of the total outsourcing market while China trails behind with 25.9 percent.

However, the growth rate for this year is expected to decline to a figure less than the 19 percent recorded for last year, according to year-end speculation by advisory firms. Research firms typically make annual projections about how the outsourcing industry will finish each year.

According to analysts, India's market share in 2009 is more or less the same as its market share in 2008. Nonetheless, the blending of several factors in global outsourcing is likely to affect the sector's market value and dynamics by 2010. Some of these factors include the recovery in the U.S. and Europe - this is expected to increase demand for BPO over IT services.