Business Process Outsourcing Services Market Analysis

Business Process Outsourcing 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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  Capgemini

  
  


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  CBRE Group Inc.

  
  


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  HCL Technologies Limited

  
  


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  Infosys Limited (Infosys BPM)

  
  


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  NCR Corporation

  
  


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  Sodexo

  
  


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  TTEC Holdings, Inc.

  
  


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  Wipro Limited

  
  


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  Other Players

  
  

Business Process Outsourcing (BPO) Services Industry Developments

• In November 2023, Cape Town, South Africa, became the location of a new TTEC customer experience delivery center that offers business process outsourcing services to a breathing customer base that spans several industries, including automotive, healthcare, telecoms, and manufacturing. The retail location in Cape Town has the capacity to accommodate several hundred employees. The location in South Africa can cater to the demand that is expected from other different parts of the world.


• In June 2023, the company announced the incorporation of Conversational Al into its BPO services that are offered to clients. The development of the latest technology, coined Conversational Al can include the usage of machine learning algorithms and natural language processing to imitate human dialogues to consumers.


• Delta BPO Solutions branched out in April of 2023 by presenting a business model that allows the owners of a company to establish their own Fiji BPO businesses and draw salaries each month. This model is beneficial to business owners who are seeking to franchise their businesses as they do not have to set it up on their own as it is specifically catered to them. Providing business process outsourcing services using the FOCO franchise model is a great way to run a business.


• In March 2021, Exela Technologies, a major player in the industry, formed an alliance with Vocalink which is a subsidiary of the Mastercard. This strategic move will enable Exela Technologies to present a “Request to Pay” solution which forms a significant component in the new payment architecture of PAY.UK. The retail payment authority for PAY. The UK contributes towards the enhancement of the payment infrastructure.


• In October 2021, The Confirmation of Payee, also known as CoP is among the many advancements in the payment system that Exela Technologies has incorporated. CoP System is a new online system that exposes and helps prevent fraudulent activity such as falsified documents, as well as active ruthless checking of payments made.


• In May 2022, Capgemini will expand its presence with the opening of further focusing on Cybersecurity and Cloud services targeting areas such as Malaga, Spain.


• Dec 2023: At this time, it is known that Capgemini SE entered into a contract with the InPost Group, which is a public logistics company located in Poland. With this partnership, Capgemini SE would implement changes in its operational procedures in several European countries and improve business processes.

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