Global IT Services and BPO Market in Government Sector 2015-2019

Market outlook of IT and BPO in the government sector

Almost every industry has undergone digital transformation and the government sector is following the same trend. The rise in government mobility services has led to the transition from desktop jobs to more of a mobile workforce environment. Technavio’s market research analysts estimate the global IT services and BPO market in the government sector to reach close to USD 179 billion until 2019.

Companies are assisting the government sector with cutting-edge technologies and associated services to enable them to focus on their core government functions. Currently, there is intense competition among IT service providers and vendors are upgrading their offerings to keep a grip on their market share in the government sector. With the aim of IT transformation like legacy modernization, the global IT services and BPO market in the government sector is expected to experience robust growth during the forecast period.

Market segmentation by IT services and BPO in the government sector

• IT services
• BPO

The market share of IT services in the government sector is larger than the market share of BPO. This reflects the fact that over 75% of government agencies are moving toward ICT-enabled solutions and aiming for enhancing quality of life through smart and effective governance. The focus is more on process efficiencies, technology scalability, and data-enabled services for better decision making.

The BPO market in the government sector finds it challenging to meet the increasing demands placed on it by the general public and because of the dynamic regulatory environment and policy amendments. Thus, BPO-based companies are developing a wide range of BPO services such as helpdesk and customer services back-office data processing. The sector is also stimulated by the enhanced focus on improving delivery services to citizens in a timely manner.

Market segmentation by BPO services

• CRM BPO
• HRO
• Others

The market is witnessing a shift in focus from cost cutting to improved service levels leading to the development of CRM as a separate stand-alone segment of BPO. Many government agencies have started using social networks to reach out to their citizens. These enterprises are approaching outsourcing to manage their social networks through which they keep their customers informed about the latest offerings and provide solutions to customer complaints and requests. Genpact and IBM are among the leading vendors in this segment.

Global IT services and BPO market in government sector by geography

• APAC
• Americas
• EMEA

The US, the UK, Canada, India, Hong Kong, Japan, and Singapore have the most experienced governments in outsourcing their IT services. Governments in Latin American counties such as Brazil, Costa Rica, Guatemala, and Argentina are also some of the key players in the Latin America region. The close proximity of these countries to their clients and high levels of proficiency in English and Spanish are some of the advantages leveraged by BPO companies in this region.

The leading vendors analyzed in the report

• Capgemini
• CSC
• IBM
• TCS
• Wipro

The other prominent vendors of the market include Accenture, Agilisys, Atos, BT Global Services, Capita, Dell, Fujitsu, Hitachi, HP, Indra Sistema, Lockheed Martin, Infosys, NEC, Northrop Grumman, Oracle, T-Systems, Unisys, Verizon, and Xerox.

Key questions answered in the report

• What are the key factors driving the IT services and BPO in the government sector?
• What are the key market trends impacting the growth of the IT services and BPO in the government sector?
• What are the various opportunities and threats faced by the vendors in the IT services and BPO in the government sector?
• Trending factors influencing the market shares for EMEA, APAC, and Americas?
• Key outcome of the five forces analysis on the IT services and BPO in the government sector?
• Growth forecast of the IT services and BPO in the government sector until 2019?

Technavio also offers customization on reports based on specific client requirement.

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