Global Business Process Outsourcing (BPO) market has a way to go. The market is set to cross $450 billion in the next four years, according to a recently released study conducted by NelsonHall, a BPO analyst firm.

The industry-wise analysis reveals that the financial services and government sectors are still the dominant sectors, followed by the defense sector. Other growth sectors for BPO activities include the health-care and pharmaceutical sectors, along with the transportation sector.

According to the research, while traditional outsourcing functions (such as finance and accounting services), HR service lines (such as benefits administration, learning services) and occupational health are the most growing BPO processes, the newly coined outsourcing function, Recruitment Process Outsourcing (RPO), is still slow in terms of growth. However, RPO will remain a key factor in supporting companies that are entering new markets. Even the customer-management services have noticed an upturn.

Interestingly, the only thing that may challenge the growing global BPO market is 2008 U.S. Presidential elections.

According to NelsonHall, “Economically, the most impacted geography is North America. This should lead to increased BPO activity, but there is always a possibility, especially as the presidential election gathers pace, that this will result in greater protectionism in the U.S. and a reaction against both outsourcing and offshoring. Currently, rather than a backlash, there are signs of increased BPO evaluation, but it is possible that a downturn in BPO contract activity could take place in the U.S. in Q4 ’08 and during the first half of 2009.”