Business Process Outsourcing Market Analysis Report By Service, By End Use, By Region And Segment Forecasts From 2020 To 2027

Report ID: MN17619828  |  Published: June 2020  |  No of Pages: 102
Format: Electronic (PDF)  |  Industry: Computing & Technology

Industry Insights

The global business process outsourcing market size was accounted for USD 221.5 billion in 2019. It is anticipated to grow with an 8.0% CAGR during the forecasted years, 2020 to 2027. This growth can be attributed to the reduction in trade barriers coupled with the rapid advances being made in the IT and Telecommunication sector.

Further, several organizations have started focusing on cost reduction and on gaining access to global resources for competitive advantage. Such organizations are gaining the advantages of outsourcing which is giving them time to focus on several competencies and for expanding their business.

China business process outsourcing market

The key operations carried out by the BPOs include marketing, business administration, supply chain management, customer care service, and sales. The key players in the BPO industry are constantly engaged in providing services across various industrial verticals like manufacturing, BFSI, retail, healthcare, etc. The companies falling under the category of the above-mentioned verticals outsource the business processes that permit them to focus on core business activities thereby attaining more profitability.

Several companies are outsourcing services like logistics, IT, legal services, and payroll from the BPOs which facilitate them in the reduction of overheads and labor costs engaged in these processes. Further, these BPOs offer a large amount of flexibility and help their clients to adopt changes as per the market trends. Moreover, various activities like recruitment and training are also being provided under the human resource service category. The majority of the key players like General Motors, Microsoft, Goodyear, and IBM have started outsourcing such services which are expected to drive the market growth for BPOs in the upcoming years.

Service Insights

In 2019, the segment of customer service dominated the business process outsourcing (BPO) market with a share of around 30% across the global market. It is also anticipated to register the fastest growth rate in the upcoming years. This growth can be attributed to their expertise in customer query handling which is being generated through emails, chats, phones, and social media.

The rising number of service center establishments that facilitate offline and online support is also expected to fuel up the segment growth of customer services in the upcoming years. On the other hand, the segment of finance & accounting is also projected to expand at a significant growth rate in the upcoming years.  This can be associated with the surging presence of several banking facilities and the strict regulatory needs of the banking sector that are leading to the demand for outsourcing services.

End-use Insights

In 2019, the BFSI end-use segment held the largest share of more than 30% across the global market. It is also expected to register the highest growth rate during the forecasted period. This can be attributed to the rising focus of the customers on services like real-time interactions, quick complaint resolution, and service expediency which have driven several BFSI companies to outsource the activities of customer services.

Global business process outsourcing market

The segment of IT and telecommunications is anticipated to register the second-largest growth rate with around 8.0% CAGR during the forecasted period. This growth can be attributed to the surging number of IT companies across the globe coupled with rapid industrialization. Moreover, the initiatives being undertaken by governing authorities to boost economic growth by allowing sectors like healthcare and banking to invest in technology are expected to drive the market growth.

Regional Insights

In 2019, Europe held the largest share of around 26.0% across the global BPO market. This growth can be attributed to the customization and flexibility of several service offerings to cater to customer needs in terms of technologies like cloud computing. Further, other factors like skilled workforce availability and good operational efficiency are driving several companies to outsource their projects and business processes to technologically developed European countries.

Latin America is also anticipated to register significant growth with more than 6.0% CAGR during the forecasted years, 2020 to 2027.  This growth can be attributed to the increasing growth across CPG (Consumer Packaged Goods) and manufacturing industries across this region. Moreover, the initiative being undertaken by the government for promoting the usage of the English language to enhance the attraction of many global service providers is also projected to drive market growth in the upcoming years.

Business Process Outsourcing Market Share Insights

The key players in this market are Infosys Limited, Accenture, Capgemini, Amdocs, Wipro, and HCL. These players have started providing a wide range of services to their clients for increasing their profit margins. For example, Capgemini is being considered as one of the major BPO working across various domains like business analytics, financial services, and supply chain.

They are also engaged in implementing various marketing strategies like joint ventures, mergers, and acquisitions to boost their global presence. For example, Wipro Limited gained acquisition over Alight HR Services in 2018 to provide offerings like IT, financial process, and HR outsourcing. These players are also focusing to create more BPOs across the globe to gain a competitive advantage over the rest of the players.

Report Scope

Attribute

Details

The base year for estimation

2019

Actual estimates/Historical data

2016 - 2018

Forecast period

2020 - 2027

Market representation

Revenue in USD Billion and CAGR from 2020 to 2027

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Country Scope

U.S., Canada, U.K., Germany, France, China, India, Japan, Singapore, Malaysia, Brazil, & Mexico

Report coverage

Revenue forecast, company share, competitive landscape, and growth factors and trends

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2016 to 2027 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the global business process outsourcing market report based on service, end-use, and region:

• Service Outlook (Revenue, USD Billion, 2016 - 2027)
    • Finance & Accounting
    • Human Resources
    • Knowledge Process Outsourcing
    • Procurement & Supply Chain
    • Customer Services
    • Others

• End-use Outlook (Revenue, USD Billion, 2016 - 2027)
    • Banking, Financial Services, and Insurance (BFSI)
    • Healthcare
    • Manufacturing
    • IT & Telecommunication
    • Retail
    • Others

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
        • France
    • the Asia Pacific
        • China
        • India
        • Japan
        • Singapore
        • Malaysia
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa

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