Business Process Outsourcing Market Size, Share & Trends Analysis Report By Service Type, By End-Use, By Region And Segment Forecasts From 2022 To 2030

Report ID: MN17619828  |  Published: November 2022  |  No of Pages: 142
Format: Electronic (PDF)  |  Industry: Computing & Technology

The global business process outsourcing market size is expected to reach USD 525.2 billion by 2030 and exhibit a CAGR of 9.1% from 2022 to 2030. The adoption of business process outsourcing (BPO) services is based on reducing the cost of business operations by organizations, and accessing global resources, thus meeting the demand of the industry. Besides, the factors driving industry expansion are the improvement of business agility for organizations, and the emphasis on core competencies to survive the continuous modifications in business dynamics.

Organizations are focused on reducing operational expenses and this factor is likely to drive the growth and demand for BPO services globally. For instance, a decrease in geographical and logistics barriers has resulted in cost reduction for BPO services. Additionally, organizations achieve a 30-40% decrease in cost reduction while operating with third-party outsourcing service providers. With BPO services organizations can initiate savings by removing the physical overhead of staff maintenance, equipment and office space, and tax savings. All these factors are likely to contribute towards the industry growth, thus increasing demand for BPO services in the market.

Owing to the COVID-19 impact in 2020, high demand for standardized platform services has been observed that enabled BPO services to solve business processes that are complex in nature. For instance, COVID-19 acted as a catalyst for rapid alteration of the BPO model that allows flexibility between outsourcing partners and clients. The model indicates that based on the response from outsourcing partners, the determination to resolve business crisis in the future is expected to increase the expectations from the BPO industry. Besides, the adverse effects of COVID-19 resulted in economic and social disruptions that brought major changes in business activities. The disruptions have also resulted in a high emergence of business continuity plans (BCP) that has been restructured by BPO organizations for modifying their business models to create growth opportunities in the BPO market.

In terms of segment, the industry has observed a rise in IT and telecommunication companies due to rapid industrialization globally that resulted in high demand for BPO services. For instance, telecom organizations implemented outsourcing business activities like call-center outsourcing, financial accounting, and as well as billing operations. BPO services have been useful for this segment in the form of capital expense reduction, flexible strategy for retaining and acquiring customers, gaining specialized resources, optimizing the latest investments, and managing cost pressures.

In terms of region, Asia Pacific is anticipated to expand at a high CAGR steadily during the forecast period and dominate the BPO services market. The increase in demand for talented professionals, low labor costs, and digital investments made by vendors are driving the regional growth of the industry. For instance, HCL Technologies Limited successfully entered the market in Vietnam in December 2020. The purpose was to expand the business, thus allowing the organization to hire talented and skilled employees and eventually provide IT solutions in the country.

Key players are focusing on expansion strategies, partnerships, and mergers and acquisitions with the aim to sustain in a competitive market by increasing their reach, developing market trends, making advancements in technology, and providing services. For instance, Amdocs signed a partnership with VEON Ltd., a provider of connectivity and internet services in October 2021. The purpose of the partnership was to provide innovative digital services to consumers of Kazakhstan and Uzbekistan.

Business Process Outsourcing Market Report Key Takeaways

  • In 2021, the customer service segment influenced the market with a 30% revenue share. Owing to an increase in the number of service centers worldwide for both offline and online technical support, the segment successfully dominated the market
  • The IT and telecommunication segment accounted for the highest revenue share of 34.0% in 2021. The rapid growth of IT companies and industrialization globally has resulted in driving the demand for the industrial growth of BPO services. Innovations in technology advancement and new devices, increasing connectivity, and overcoming security issues are the reasons for the segment growth
  • The BFSI segment is subjected to expand by 2030 and exhibit a CAGR of 9.0% during the forecast period. Companies in this segment are implementing outsourcing processes for the management of assets and investment to upgrade customer services
  • North America dominated the market with a revenue share of 36% in 2021 and is anticipated to grow during the forecast period. Customized service offerings to meet requirements, and an increase in cloud computing demand are responsible for the regional growth
  • According to a data report by ISG, in April 2022, there has been an expansion in global outsourcing contracts by 31%, which is worth USD 24.2 billion as recorded in the first quarter, thus boosting the industry growth


Business Process Outsourcing Market Segments

  • Business Process Outsourcing Service Type Outlook (Revenue, USD Billion, 2018 - 2030)
    • Finance & Accounting
    • Human Resource
    • KPO
    • Procurement & Supply Chain
    • Customer Services
    • Others
  • Business Process Outsourcing End-use Outlook (Revenue, USD Billion, 2018 - 2030)
    • BFSI
    • Healthcare
    • Manufacturing
    • IT & Telecommunications
    • Retail
    • Others
  • Business Process Outsourcing Regional Outlook (Revenue, USD Billion, 2018 - 2030)
    • North America
      • U.S.
      • Canada
    • Europe
      • U.K.
      • Germany
      • France
      • Rest of Europe
    • Asia Pacific
      • China
      • India
      • Japan
      • Rest of Asia Pacific
    • Latin America
      • Brazil
      • Mexico
      • Rest of Latin America
    • Middle East & Africa (MEA)
  • List of Key Players of Business Process Outsourcing Market
    • Accenture
    • Amdocs
    • Capgemini
    • CBRE Group Inc.
    • HCL Technologies Limited
    • Infosys Limited (Infosys BPM)
    • NCR Corporation
    • Sodexo
    • TTEC Holdings, Inc.
    • Wipro Limited
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