Digitalization in BPO Market Analysis

Digitalization in BPO Market Overview

Digitalization in BPO Market Size was valued at USD 29,817.0 Million in 2022. The Digitalization in BPO market is projected to grow from USD 37,230.6 Million in 2023 to USD 117,953.2 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 13.7% during the forecast period (2023-2032). Benefits offered by digital technologies to the BPO industry and high competition across the BPO industry are driving the growth of the market.

FIGURE 1: DIGITALIZATION IN BPOS MARKET SHARE 2018-2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Digitalization in BPO Market Trends

• Benefits offered by digital technologies to the BPO industry

The BPO industry has evolved and come a long way from the outsourced non-core business processes to the software development of critical applications, human resources tasks, financial reporting & accounting training, payroll, and procurement, among other such vital tasks. Several BPO service providers are modernizing the standard of projects they in-source from the typical back-office to middle-office roles. For instance, the BPO industry is gaining traction from the healthcare sector for medical transcription purposes, animation production from the media & entertainment vertical, and mission-critical events from disaster recovery management systems. This is all possible only due to the adoption of innovative technologies that have seamlessly improved the standard of the BPO industry to provide the changing organizational demands, cater to the unstable consumer sentiments, and the rising cost of business operations. Outsourcers look in for the service methodology, the right technology & infrastructure in place, and qualified people with essential skills, among other factors that drive their business. However, the increasing availability of low-cost communication platforms, availability of high-speed internet connectivity, and integration of advanced technologies such as IoT, AI, Blockchain, and machine learning have enabled BPO providers to boost their demand in the industry while reducing the risk, increasing accuracy & transparency, enhancing quality, minimize cost, others. For instance, the implementation of robotic process automation (RPA) offers benefits such as improving operations, increasing productivity, and boosting organizational growth. Moreover, the integration of AI-based technologies in the call center environment to automate their processes, including payment transactions and live chatbots. Furthermore, machine learning technology has proven to be beneficial in tasks such as recognizing security breaches in the clients’ digital infrastructure. Thus, the wide range of benefits offered by digital technologies to the BPO industry is expected to drive the growth of the global digitalization in business process outsourcing (BPO) market during the forecast period.

Digitalization in BPOs Market Segment Insights

Digitalization in BPOs Technology Insights

The Digitalization in BPOs market segmentation, based on technology, includes business process automation, robotic process automation, artificial intelligence (AI), speech to text, big data & business analytics, and others. Big data & business analytics was the leading segment with 78.67%  market share in 2021. Among the BPO’s, big data and analytics are the major technologies being used to automate business processes. More BPO companies rely upon big data analytics technology to make business more productive and offer a better customer experience. BPO businesses can highly profit from big data analytics because of the volume of data they gather. By analyzing current data, BPO businesses can generate strategic insights for their clients and build better customer relationships. The rise of disruptive technologies has completely reshaped BPO-customer relationships now. The major application of big data & analytics technology is more prevalent in call centers.

Digitalization in BPOs Component Insights

By Component the market is divided into Software, and Service. According to component type, the software segment led the overall market in the Digitalization in BPO industry in 2022 with 78.55% , and it is expected to continue to lead during the forecast period. Digitalization across the BPO is growing exponentially from the last few years to increase the speed of processes and reduce errors. Several advanced technology solutions are being deployed to increase the efficiency of the BPO operations. The technology solutions such as business process automation (BPA), robotic process automation (BPA), artificial intelligence (AI), speed-to-text software, and big data & analytics, among others. Furthermore, BPO automation/digitalization software can be deployed on the cloud or on-premises as per the business needs.

Digitalization in BPOs Deployment Insights

The Digitalization in BPO market research segmentation, by deployment, the market is segmented into , Cloud and On-Premise. The On-premises market held a major share of the market in 2021 with market share of 64.51%. On-premises software is installed and runs on computers on the business premises using the software, rather than at a remote facility such as a cloud. The on-premise software also offers major security as compared to cloud-based software solutions. However, the disadvantage of on-premise environments is that costs associated with maintaining and managing all the solutions entails can run exponentially higher than in a cloud environment. An on-premise setup requires in-house server hardware, software licenses, integration capabilities, and IT employees on hand to support and manage potential issues that may get up.

FIGURE 2: DIGITALIZATION IN BPOS MARKET, BY DEPLOYMENT, 2022 VS 2032 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Digitalization in BPOs Organization Size Insights

Based on Organization Size, the Digitalization in BPO Market has been segmented into SMEs and Large Enterprises. Large Enterprises segments dominate the market. Large enterprises are those that have 1000 employees and/or over USD 1 billion annual revenue. Large enterprises have many moving pieces that must be attended to. The adoption of automation/digitalization software solutions across large enterprises is significantly high as compared to SMEs. This can be mainly attributed to the high implementation cost of the BPO automation/ digitalization software solution. Several BPO companies are partnering with automation providers to automate their business operations.

Digitalization in BPOs Vertical Insights

Based on Vertical, the Digitalization in BPO Market has been segmented into BFSI, IT & Telecommunications, retail and consumer goods, & e-commerce, manufacturing, healthcare and life sciences, media & entertainment, travel & logistics, energy & utilities, hospitality, and others. BFSI segments dominate the market with share of 22.84%. BFSI sector is one of the largest sectors in the globe. The sector has experienced tremendous growth in transactions and accounting processes in recent years, and therefore, the sector has become the largest customer for the BPO sector. The BPO sector is implementing advanced technologies to cater to the business processes of the BFSI sector more efficiently and securely. BPA, RPA, AI, and big data & analytics are the technologies that the BPO companies utilize to accomplish the repetitive tasks of the BFSI sector more accurately. These technologies are being deployed by BPO companies to digitize the finance & accounting, back office, human resources & training, procurement, and marketing processes. In addition, the customers' expectations have grown significantly, and therefore, these technologies are assisting the BFSI sector to offer improved customer experience with lower costs.

Digitalization in BPOs Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. North America accounted for the largest share of revenue in 2021 with share of 54.16%. North America is the largest revenue contributor to the digitalization in the business process outsourcing (BPO) market as the increasing demand for advanced technologies and increasing focus of organizations on improving business agility is high in the region. In North America, the high penetration of this digitization technology can be attributed to universal standards accepted worldwide.

It is expected that the Europe region will exhibit the fastest CAGR during the forecast period. The regional market is segmented into the UK, Germany, France, and the rest of Europe. The European digitalization in the business process outsourcing (BPO) market is expected to grow due to the adoption of BPO software by midsize companies.

Further, the countries considered in the scope of the Digitalization in BPOs market are the 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: DIGITALIZATION IN BPOS MARKET SHARE BY REGION 2022 (% Share)

Digitalization in BPOs Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Digitalization in BPOs market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Digitalization in BPOs industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

Key Companies in the Digitalization in BPOs market include

• UiPath’s


• Blue Prism


• Automation Anywhere, Inc.


• kore ai


• Pegasystems Inc.


• Quale Infotech


• Kofax Inc.


• Prolitus


• Q3 technologies, Inc.


• AutomationEdge


• Hexaware Technologies Limited.


• debabit


• NextProcess, LP


• Nividous


• LivePerson, Inc.


• NTT data, among others

Digitalization in BPOs Industry Developments

June 2021 L&T acquired Cuelogic Technologies, a Pune, India-based digital engineering and outsourced product development organization. This is expected to boost the former’s cloud-based web & mobile applications, modernization, and digital engineering capabilities.

July 2021 Capgemini announced the acquisition of Empired, an Australia-based cloud transformation and digital services provider in Australia & New Zealand. This strategic initiative is expected to strengthen Capgemini’s capabilities in the cloud and data in the region.

May 2021 L&T joined its workforce with Aspen Technology, Inc., a leading global provider of asset optimization software, to provide AspenTech solutions through the former’s managed cloud services to accelerate the digital transformation of their client organizations.

• Intended Audience


• Semi-Conductor Industry


• Robotics Industry


• Healthcare Industry


• Technology Investors


• Regulatory Industries


• Government Bodies

Digitalization in BPOs Market Segmentation

Digitalization in BPOs Technology Outlook

• Business Process Automation


• Robotic Process Automation


• Artificial Intelligence (AI)


• Speech to Text


• Big Data & Business Analytics


• Others

Digitalization in BPOs Component Outlook

• Software


• Service

Digitalization in BPOs Deployment Outlook

• Cloud


• On-Premise

Digitalization in BPOs Organization Size Outlook

• SMEs


• Large Enterprises

Digitalization in BPOs Vertical Outlook

• BFSI


• IT & Telecommunications


• Retail and Consumer Goods


• & E-Commerce


• Manufacturing


• Healthcare and Life Sciences


• Media & Entertainment


• Travel & Logistics


• Energy & Utilities


• Hospitality


• Others

Digitalization in BPOs Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa


• South America