Business Process Outsourcing (BPO) Market
Business Process Outsourcing (BPO) Market Analysis by Services (Finance & Accounting, Human Resources, Knowledge Process Outsourcing, Procurement & Supply Chain, Customer Services), by End Use, by Region - Global Forecast 2022-2032
Global Business Process Outsourcing Industry Outlook (2022-2032)
The global business process outsourcing market will grow at an impressive 8.5% CAGR to touch the US$ 620 Bn mark through 2032. North America is likely to capture a lion’s share in the overall BPO market.
Market Size (2022)
US$ 273.3 Bn
Value CAGR (2022-2032)
Market Share of North America
Key Companies Profiled
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Revenue from Business Process Outsourcing Industry from 2017 to 2021 Compared to Demand Outlook for 2022 to 2032
Organizations are increasingly looking for specialized companies that provide the much-needed support services to business processes that can be outsourced without the direct investment of dedicated time and human resources. Hence, the demand for BPO services experienced a spike in the past half-decade and reached US$ 232.3 Bn in 2021, growing at a 7% CAGR throughout the historic period.
The market is anticipated to benefit from the swelling focus of organizations on enhancing business agility, surviving the constantly changing business dynamics. Owing to this, the market valuation is projected to touch the US$ 620 Bn mark by the end of 2032, expanding at a CAGR of 8.5%.
What are the Factors Driving the Demand for the Business Process Outsourcing?
The shift of focus from monopolistic business strategies to shared workload business culture is spurring demand for business process outsourcing for improved results and continued success.
With remote working becoming a possibility, BPOs are likely to benefit a lot. First bigger organizations will rely on them and secondly, they will be open to hiring the best employees from across the country or globe. The COVID-induced pandemic has introduced new normal and opened boundaries for BPOs.
Varied organizations including Facebook have announced that “if remote working continues, they will revise salaries, hire more proficient employees available in less expensive economies”. BPO sales processes are likely to follow suit and have employees that are well-educated and are available at a lesser cost.
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What are the Key Market Trends & Growth Opportunities in Business Process Outsourcing Market?
The adoption of robotic process automation has completely transformed the BPO industry. Special software robots i.e., bots are coded and assigned to the existing workstream wherein they start performing tasks with greater speed, accuracy, and precision.
Artificial Intelligence or AI is becoming an increasingly vital feature in every industry and the outsourcing business is no different. AI is being increasingly employed to automate several data entry and processing functions including accounts payable processing, invoice management, and utility bill processing. AI streamlines all these processes by identifying and segregating data and even automatically filling in missing details.
Why North America Remains at the Forefront of BPO Services?
North America dominates the BPO market with a majority market share of over 3/5th of the overall market value. The growth is largely attributed to the presence of prominent tech firms and start-ups in the region.
Firms operating in the province are profoundly capitalizing on the progress of advanced technologies like analytics, big data, cloud computing, and artificial intelligence (AI) to provide comprehensive BPO services to their clients.
In the U.S alone, the total count of global BPO companies is 265,679, an upsurge of 4.1% from 2021. After North America, Europe follows with the second-largest share of more than 1/4th of the global market value.
How is Business Process Outsourcing Market Fostering in the Asia-Pacific Region?
The Asia Pacific displays remarkable growth throughout the forecast period. The thriving digital economy with the advent of customer care technologies such as automated chatbots generates augmenting demand for dedicated customer care. Participants in emerging economies of Asian countries are leveraging inter-connected business process outsourcing services to make sure quality of service and subsequent competitive edge. The region is likely to cultivate at a compounded annual growth rate of over 11% from 2022 to 2032.
Countries like China, India and the Philippines are among the fastest-growing economies owing to the convenience of the low-cost talent pool of IT process outsourcing. Companies in developed economies outsourced their business processes to emerging economies such as India and China to invest in their affordable talent pool.
How IT & Telecommunication Industry Influence the Demand for Business Process Outsourcing?
Early adopter segments such as IT & Telecommunications are at the forefront of BPO practices. IT & Telecommunications account for over 57% of the total business process outsourcing (BPO) market value. Currently, the commencement of big data analytics, process automation, and the likes has shaped more competitiveness in the field of BPO. Though, there’s also an upsurge in the demand for talent in the BPO and IT sectors. The advance of e-commerce and health industries combined with the pre-existing IT industries has led to generating a high demand for BPOs.
Further, constant advancements in data management technologies such as servers, storage, and virtualization compel IT & Telecommunication companies to outsource their IT infrastructure or processes to gain a competitive edge. Industry verticals such as travel, transportation, and government-held companies are buckling up and integrating BPO services.
Is Finance & Accounting Sector Likely to Gush Demand for Business Process Outsourcing?
Accounting outsourcing service establishes a significant function in the global finance and accounting market. The total economic crisis is projected to substitute the demand for F&A BPO activities, as the service needs less customization when the process and technology are outsourced (in comparison to customer care and HR BPO).
Growing demand for transparency and increased regulations are driving companies to standardize their F&A (Finance and Accounting) BPO activities. The move towards standardization is also pouring the incorporation of best practices in financial management, which is a chief propelling factor for the acceptance of F&A BPO services.
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Prominent players are embracing innovative approaches such as ground-breaking marketing tactics, technological advancements, mergers, and acquisitions to expand their market ground
- In December 2021, Accenture (NYSE: ACN) has completed the acquisition of Tambourine, an e-commerce customer experience agency with award-winning capabilities in cloud-based technologies in Japan. Tambourine provides integrated commerce services on the Salesforce platform and brings a proven track record in using Salesforce Commerce Cloud to deliver seamless commerce experiences for consumer goods and entertainment companies.
- In January 2022, In January, Genpact Ltd, the business process outsourcing (BPO) company listed on the New York Stock Exchange (NYSE), bought Milpitas, California-based data analytics firm Enquero Inc. in the 14th acquisition
Key Segments Covered in the Business Process Outsourcing Industry Report
- Finance & Accounting
- Human Resources
- Knowledge Process Outsourcing
- Procurement & Supply Chain
- Customer Services
By End Use
- Banking, Financial Services, and Insurance (BFSI)
- IT & Telecommunication
- Others (travel and transportation, government, education, construction, and utilities)
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