KPMG have predicted that BPO will increase over the next six months as businesses react to the recovering economy.

A quarterly report from the professional services company found that 59 percent of outsourcers surveyed expected to meet increased demand, an increase of 8 percent from the previous report.

The survey also found that 45 percent of respondents have increased domestic outsourcing services.

Shamus Rae, head of the Shared Services and Outsourcing Advisory team at KPMG, said: ““It is encouraging to see that suppliers are more bullish about business prospects then they have been for some time, but while we are not exactly in recession, we are not quite celebrating a recovery either.”