Business Process Outsourcing (BPO) Services Market

Report Overview

Product Overview

Business Process Outsourcing (BPO) Services Market size was USD 253.89 billion in 2021 and projected to grow from USD 303.5 billion in 2023 to USD 687.0 billion by 2032, exhibiting a CAGR of 9.5% during the forecast period.

Business Process Outsourcing is a practice in which a company contracts with external service provider to accomplish some essential business tasks. A company usually contracts with other business for these services after it has recognized a process that is actually important for operations, but is not an element of main value proposition. Sturdy business process management and a thorough understanding of organizational processes are necessary for this level.

Market Highlights

Business Process Outsourcing (BPO) Services Market is expected to project a CAGR of 9.5% during the forecast period, 2022-2032

Business Process Outsourcing (BPO) Services Market is expected to reach USD 687.0 billion, growing at a CAGR of 9.5% during the forecast period owing to the emergence of novel technologies like Artificial Intelligence and Cloud Computing and heavy investments in these technologies for cost-efficient office infrastructure and space. Moreover, small and medium businesses are increasingly using virtual systems and storage to overcome hardware costs, software, and data centres, and increased mobility. These factors are expected to boost the growth of Business Process Outsourcing (BPO) Services Market over the forecast period.

Business Process Outsourcing (BPO) Services Market Segmentation

Customer Services segment is expected to dominate in the forecast period

Business Process Outsourcing (BPO) Services Market is classified based on the Service Type into Finance & Accounting, Human Resource, KPO, Procurement & Supply Chain, Customer Services, and Others. In 2022, the Customer Services sector led the market, and it is predicted to dominate throughout the projection period. The increase in service centres that require online and offline technical help are the reason for this growth. Businesses that focus on providing customer service are experts at managing requests and questions from customers that come in from chats, social media platforms, emails, phone calls, and other channels.

BFSI segment is expected to dominate in the forecast period

Business Process Outsourcing (BPO) Services Market is classified based on the End Use Industry into BFSI, Healthcare, Manufacturing, IT & Telecommunications, Retail, and Others. The IT & Telecom domain had the higher revenue share in 2022 due to the following rise in IT companies and the global industrialisation. The BFSI sector, however, is anticipated to experience the highest growth over the next few years as financial institutions use BPO as a tool to increase their cost effectiveness.

Market Dynamics                                               

Growth Drivers

Rising Competitiveness among Businesses and Growing Small Scale Organizations are Expected to Boost the Market Growth

Increased competition from new outsourcing locations and pressure on companies to operate more cost-effectively are driving the rise of the Business Process Outsourcing (BPO) Services Market. Also, an increasing number of small businesses have begun outsourcing their operations. This ultimately creates future opportunities for the growth of the market.

Benefits of Innovations and Technological Advancements are Expected to Boost the Market Growth

Organizations are using innovation and technological improvements to run their operations successfully and efficiently. In the global Business Process Outsourcing (BPO) Services Market, robotics technology is rising to prominence. Robotics helps in improving quality and performance while also decreasing costs. The Business Process Outsourcing (BPO) Services Market is expanding mostly due to low labor cost nations. The fact is that labor costs are lower and resources are more easily accessible in low-cost nations. The said market is expanding due to these factors.

Restraint

Data Security and Lack of Skilled Experts to Restrain the Market Growth

Since data security is now more crucial than ever, many individuals are interested in learning how BPO businesses handle data security. Even though business process outsourcing is becoming more and more popular, many businesses worry that dealing with a 3^rd party BPO organization would compromise their data security. Another major issue for most business process outsourcing businesses is attrition and a lack of qualified experts.

Recent Developments

• Wipro Limited opened its new office in Cape Town at Sable Park, South Africa, in June 2023, highlighting the company's emphasis on investing and growing its presence in the nation. This is anticipated to hasten job and skill development prospects for the rapidly expanding BPO domain in Cape Town, which makes a substantial contribution to the local economy.

• TTEC Holdings will be able to provide digital CX services to customers in a variety of industries thanks to the opening of a novel customer experience delivery centre in San Pedro Sula, Honduras, in May 2023. TTEC anticipates that this growth will lead to a number of job openings in the area, which claims a sizable English-speaking talent pool.

Business Process Outsourcing (BPO) Services Market

Key Players Covered:

• Accenture
• Tata Consultancy Services Limited
• Cognizant
• Capgemini
• Wipro
• HCL Technologies Limited
• Tech Mahindra Limited
• Genpact
• TTEC
• ADP Inc.
• Infosys Limited (Infosys BPM)
• Amdocs
• Helpware
• SunTec Web Services Pvt. Ltd.
• Invensis Technologies Pvt. Ltd.
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Business Process Outsourcing (BPO) Services Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. In 2020, the Business Process Outsourcing (BPO) Services Market was dominated by North America. The primary driver was the growing use of cloud-enabled services and digital products, which require regular support and upkeep for business operations. However, Asia-Pacific region is projected to grow speedily with remarkable CAGR during the projection period. Government agencies are projected to invest heavily in infrastructure improvement, which will aid to strengthen the current business process outsourcing ecosystems in the area.

Impact of Covid-19 on Business Process Outsourcing (BPO) Services Market

Covid-19 has a significant and varied impact on the BPO industry, and many BPO organizations are still making adjustments in response to its effects. The BPO industry is particularly privileged to be able to conduct business digitally, as this reduces the dangers to employee health and safety. To sustain good virtual performance, BPO companies have adopted a lot of digital and technological advances.

Business Process Outsourcing (BPO) Services Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Business Process Outsourcing (BPO) Services Market Scope and Segments:

Frequently Asked Questions (FAQ):