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The global business process outsourcing services market is set to reach US$ 586.92 BN by 2030, at a 9.6% CAGR between years 2022-2030. The market is undergoing dynamic changes as it continues to evolve and adapt to the ever-shifting landscape of global business. Employing Business Process Outsourcing (BPO) services is strategic practice followed in almost all large organizations to enhance operational efficiency and cost-effectiveness. Organizations are increasingly delegate specific business processes to external service providers., which is a key driver boosting the BPO services market size. Also, growing technological advances, market demands, and economic shifts shape the market dynamics of BPO services. Of these, technological innovation is a significant factor influencing the BPO services market dynamics.
The rapid evolution of digital technologies like AI, robotic process automation (RPA), and data analytics has transformed the BPO landscape. Businesses are more and more using these tools to make things easier, lessen mistakes and boost overall work output. This has made people want more BPO services that mix these fancy new technologies, showing a change towards smarter and automatic ways. Another important thing that pushes the changes in the BPO Services Market is what people want to buy or use. Different companies in many businesses are starting to see the smart side of giving out work that they don't mainly do.
This lets them concentrate only on their main strengths. As businesses grow around the world, there is more need for specialized BPO services. These areas include customer service and finance but also human resources and managing where things come from or go to like in a supply chain. The market answers this need by giving a wide variety of outsourcing services designed just for particular business needs. The world's economy has a big impact on how the BPO Services Market works. Businesses make outsourcing decisions based on changes in the economy, unsure political situations and shifts in rules. When the economy is bad, businesses often use BPO services to save money and stay competitive.
On the other hand, when there is economic growth happening, companies might look for partnerships with BPO to grow their operations fast. The ability of the BPO industry to change with economic swings shows it's strong and important in a worldwide business environment. The competition inside the BPO services market is also worth mentioning. In the market, service providers fight hard to stand out from others by offering better quality and new ideas. They also try to save money on costs. BPO companies often use alliances, mergers and buy-outs to grow their services worldwide and gain more of the market. This active race promotes a setting of constant growth and creativity, helping companies looking for BPO partners.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Service Type, Operating Model, Organization Size, Deployment, Vertical, and Region |
Business Process Outsourcing Services Market Highlights:
Business Process Outsourcing (BPO) Services Market Overview
The Business Process Outsourcing (BPO) Services Market size is projected to grow from USD 299.1 Billion in 2024 to USD 603.4 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.10% during the forecast period (2024 - 2032). Additionally, the market size for banking services was valued at USD 282.3 billion in 2023.
Increasing adoption of BPO services in the IT and telecommunication sector, increasing investments by enterprises for BPO.
Figure 1: Business Process Outsourcing (BPO) Services Market Overview, 2024 & 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Business Process Outsourcing (BPO) Services Market Trends
Emergence of New Technologies
Over the years, BPO service providers have been offering services with cost-effective solutions the traditional way. However, the emergence of new cloud computing and artificial intelligence (AI) is altering the BPO services process by lowering costs and accelerating growth. The companies are investing in cloud computing to reduce the cost of office space and infrastructure. Additionally, small- and medium-sized enterprises are adopting virtual storage and systems to overcome the cost of hardware, data centers, and software and increase mobility.
Moreover, with the advancement of technology, the BPO sector is shifting towards robotic process automation (RPA). The implementation of RPA in BPO services is expected to reduce the number of employees while saving money and time through process automation. Furthermore, with ongoing developments, AI and omni-channel solutions for clients to interact with businesses may prove to be an advantage for organizations in the near future. Thus, the emergence and adoption of technologies in the coming years are expected to drive the market.
Recent Development on Business Process Outsourcing (BPO) Services Market
May 2023- With the purchase of a property in Tbilisi's famed Freedom Square, Clark Staff LLC, a major participant in the world of business process outsourcing with offices in the Philippines, India, and Georgia, marks yet another significant milestone in its growth.
This ancient building, which is located at the 3 Galaktion Tabidze St., is in one of the most exclusive areas of the nation and exudes a dynamic vitality and alluring charm. With this investment, Clark Staff, which has been operating successfully in Georgia for a year, reinforces its dedication to the area.
The building, of which the Clark Staff will grab the top two floors, will undergo a thorough three-month renovation to become a state-of-the-art BPO facility that will house employees in a well-established corporate culture that promotes a great working environment.
Their operations in Georgia in the last year have indeed only reinforced their belief in the huge potential of the market, especially its active talent pool & rapidly evolving economic landscape, said Zack Williamson, CEO of Clark Staff. Not only do they find Georgia to be very business-friendly and ideal for outsourcing services, but it is just another basket they can put eggs in these times of global uncertainty to assure the stability of services to their customers all through the ever-amending geopolitical environment, the speaker continued.
The new Clark Staff facility will house multilingual agents fluent in German, French, Italian, English, and Spanish in addition to providing a wide range of services, comprising IT support, software development, and accounting/finance.
With offices in the Philippines, India, & Georgia, Clark Staff is a full-service BPO firm with American ownership and management that is based in St. Petersburg, Florida. For businesses of every size and in any sector, Clark Staff provides a broad range of service options.
Business Process Outsourcing (BPO) Services Market Covid Impact
The impact of COVID-19 led to economic and social disruptions and created challenges in outsourcing functions. However, the changes brought to business activities due to these disruptions are expected to provide impetus to the market in the long run. BPO companies have changed their business models by restructuring their Business Continuity Plans (BCP) to a distributed workforce. Businesses have realized the importance of continuous operations planning and disaster recovery to build a more reliable business model that can survive an unprecedented disruption like the COVID-19 pandemic.
In 2020, the major vendors of the market, including Accenture and Infosys Limited (Infosys BPM) stated that due to COVID-19, more than 80-90% of their employees were working from a remote location. The resultant disruption caused in the workforce management process, lack of infrastructure equipment, and increased data security risks led to a reduction in work efficiency and delays in project completions in the market.
Business Process Outsourcing (BPO) Services Market Russia-Ukraine War Impact
Russia's invasion of Ukraine and the ongoing effects of the pandemic had a negative and unclear impact on the world economy. Many of the downside risks mentioned in April World Economic Outlook have started to manifest. The world's financial conditions have become more rigid due to higher-than-expected inflation, particularly in the United States and major European nations. With COVID-19 outbreaks and lockdowns, China's recession has been greater than expected, and the conflict in Ukraine has had further detrimental effects.
Business Process Outsourcing (BPO) Services Market Segment Insights
Business Process Outsourcing (BPO) Services Service Type Insights
The Business Process Outsourcing (BPO) Services market segmentation, based on service type, includes finance and accounting outsourcing, marketing & sales outsourcing, customer support outsourcing, training & development outsourcing, human resource and recruitment outsourcing, document management & processing, and others. The customer support outsourcing services category dominated the market in 2022, accounting for more than 30% of total revenue. During the forecast period, it is anticipated that the category will continue to dominate and set the CAGR. This segment is explained by the increase in service centers that require offline and online technical help worldwide.
December 2022, Phillips 66 Company chose SAP to implement market-leading technologies to support its Business Process Outsourcing (BPO) Services, according to a statement from SAP SE. Maximizing profitable decision-making, reducing commodity risk, controlling capital expenditures, and improving fine-grained visibility along the hydrocarbon value chain were all objectives.
Business Process Outsourcing (BPO) Services Operating Model Insights
The business process outsourcing (BPO) services market segmentation, based on the operating model, includes on-premises and cloud. Cloud-based adoption, also known as business process as a service, is expected to skyrocket in the coming years. BPaaS is a form of BPO that employs a cloud computing service model. Whereas the aim of traditional BPO is to reduce labor costs, BPaaS reduces labor count through increased automation, thereby cutting costs in the process.
May 2022 - NCR Corporation, a prominent business technology provider, announced that Allegacy Federal Credit Union (FCU) in North Carolina will use NCR and Google Cloud's data warehousing and analytics solution. In order to provide Allegacy FCU's leadership team with a dashboard with data visualization tools that will aid in making strategic decisions about marketing, the introduction of new products, and improving customer service, NCR will combine a number of disparate data sources from across the organization of Allegacy FCU.
Business Process Outsourcing (BPO) Services, By Vertical Insights
The Business Process Outsourcing (BPO) Services market data has been bifurcated by Vertical into BFSI, IT & telecommunication, retail & consumer goods, manufacturing, healthcare and life sciences, government and defense, transportation & logistics, energy & power and others. The IT & telecommunications category maintained the biggest revenue share in 2022, owing to an increase in the number of IT organizations and fast industrialization around the world, which are some of the factors driving demand for business process services across the IT and telecommunications industries. IT and telecom BPO services meet the rising demand for connectivity, deal with security concerns, and develop fresh products for the newest gadgets and technological advancements. Call center outsourcing, billing operations, finance, and accounting are just a few of the business tasks that telecom businesses outsource. When telecom firms outsource, they can lower their capital expenditures, gain access to specialized skills, maximize their present assets, develop flexible client acquisition and retention strategies, and control cost pressures.
Figure 2: Business Process Outsourcing (BPO) Services Market, by Vertical, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
January 2022, in its 14th acquisition, Genpact Ltd., a business process outsourcing (BPO) company listed on the New York Stock Exchange (NYSE), has purchased Milpitas, California-based data analytics provider Enquero Inc.
Business Process Outsourcing (BPO) Services Regional Insights
By region, the study segments the market into North America, Europe, Asia-Pacific, and the Rest of the World. The North America Business Process Outsourcing (BPO) Services market accounted for USD 158.98 billion in 2021 and is expected to exhibit an XX% CAGR during the study period. The region is projected to maintain its supremacy due to rising demand for business process outsourcing services from the region's tech giants. Regional expansion is also anticipated to be supported by the customization of service offerings to better fit individual demands and the rising demand for cloud computing. Similar to the American industry, the European market is anticipated to grow strongly due to the availability of a competent workforce, as well as the high quality of services and operational effectiveness.
The countries considered in the scope of Business Process Outsourcing (BPO) Services market are US, Canada, Mexico, UK, Germany, France, Italy, Spain, Switzerland, Austria, Belgium, Denmark, Finland, Greece, Hungary, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Sweden, Romania, Ireland, China, Japan, Singapore, Malaysia, Indonesia, Philippines, South Korea, Hong Kong, Macau, Singapore, Brunei, India, Australia & New Zealand, South Africa, Egypt, Nigeria, Saudi Arabia, Qatar, United Arab Emirates, Bahrain, Kuwait, and Oman, Brazil, Argentina, Chile, and others.
Figure 3: BUSINESS PROCESS OUTSOURCING (BPO) SERVICES MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Business Process Outsourcing (BPO) Services Key Market Players & Competitive Insights
Key competitors are working on growth strategies, partnerships, and mergers and acquisitions in order to stay competitive by expanding their reach, developing market trends, making technological breakthroughs, and delivering services. For instance, in October 2021, Amdocs agreed to a collaboration with connection and internet service provider VEON Ltd. The partnership's main goal was to offer consumers in Kazakhstan and Uzbekistan cutting-edge digital services. Business Process Outsourcing (BPO) Services is a market where a number of local, regional, and international firms compete for a sizeable portion of the overall market.
Some of the major players operating in the market include Accenture, Amdocs, Capgemini, CBRE Group Inc., HCL Technologies Limited, Infosys Limited (Infosys BPM), NCR Corporation, Sodexo, TTEC Holdings, Inc., Wipro Limited and Others.
Key Companies in the Business Process Outsourcing (BPO) Services market include.
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Accenture
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Amdocs
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CBRE Group Inc.
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HCL Technologies Limited
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NCR Corporation
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Sodexo
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TTEC Holdings, Inc.
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Other Players
Business Process Outsourcing (BPO) Services Industry Developments
June 2021, IBM released IBM z/OS V2.5, the next-generation operating system (OS) for IBM Z, aiming to accelerate client adoption of hybrid cloud and artificial intelligence and drive application modernization efforts.
July 2021, Wipro Limited has launched FieldX, a cloud-based end-to-end digital service lifecycle automation solution built on ServiceNow's Now Platform®. Manufacturing companies can improve and expand their after-sales customer support operations using FieldX while spending less money.
December 2021, Accenture has finalized the acquisition of Tambourine, a Japanese e-commerce customer experience agency with award-winning cloud-based technology capabilities. For consumer products and entertainment firms, Tambourine offers integrated commerce services on the Salesforce platform and has a track record of success utilizing Salesforce Commerce Cloud
Business Process Outsourcing (BPO) Services Market Segmentation
Business Process Outsourcing (BPO) Services, By Service Type Outlook
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Finance and Accounting Outsourcing
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Marketing & Sales Outsourcing
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Customer Support Outsourcing
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Training & Development Outsourcing
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Human Resource and Recruitment Outsourcing
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Document Management & Processing
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Others
Business Process Outsourcing (BPO) Services, By Operating Model Outlook
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Traditional (On-Premises)
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Business Process-as-a-Service (BPaaS) (Cloud-Based)
Business Process Outsourcing (BPO) Services, By Organization Size Outlook
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SMEs
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Large Enterprises
Business Process Outsourcing (BPO) Services, By Vertical Outlook
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BFSI
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IT & Telecommunication
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Retail & Consumer Goods
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Manufacturing
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Healthcare and Life Sciences
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Government and Défense
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Transportation & Logistics
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Energy & Power
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Others
Business Process Outsourcing (BPO) Services Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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