USD 53.61 billion
BPO Market Size, Share, Growth Analysis, By Service type(Finance & Accounting, Human Resource, KPO, Procurement & Supply Chain), By End-user(BFSI, Healthcare, Manufacturing, IT & Telecommunication), By Location(Onsite, Offsite, offshore), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG50B2008 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|Tables:
99
|Figures:
76
BPO Market Insights
Global BPO Market size was valued at USD 53.61 billion in 2019 and is poised to grow from USD 57.67 billion in 2023 to USD 110.74 billion by 2031, growing at a CAGR of 9.1% in the forecast period (2024-2031).
BPO is a contracted business support activity with an external service provider. Services offered by BPOs include human resources, payroll, and call centers. Companies are increasingly turning to business outsourcing, as they realize that the partnership is a long-term, cost-effective strategy. Many countries view BPO as an opportunity to create jobs. The market is predicted to benefit from the increasing focus of organizations on improving business agility, in order to survive the changing dynamics of business, as well as ways of increasing efficiency while decreasing operating costs and emphasizing core competencies.
Several end-use industries, including banking, financial services, healthcare, and manufacturing employ BPO services in some capacity, which in return strengthens market growth. Outsourcing business operations offers benefits like reducing operational costs and increasing efficiency in support functions like customer service. A BPO service not only offers increased interconnection for businesses, but it also provides reliable, relevant, and round-the-clock support for essential business processes. Changing business strategies from monopolistic to shared workload cultures is fuelling growth in demand for business process outsourcing.
US BPO Market is poised to grow at a sustainable CAGR for the next forcast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
finance & accounting
Fastest Growth
finance & accounting
Growth Rate
9.1% CAGR
Global BPO Market ($ Bn)
Country Share for North America Region (%)
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BPO Market Segmental Analysis
BPO market is segmented based on service type, end user, location, and region. based on service type BPO market is categorized into: finance & accounting, human resource, KPO, procurement & supply chain, customer services, others. based on end user BPO market is categorized into: BFSI, healthcare, manufacturing, it & telecommunication, retail, others.
Based on location BPO market is categorized into: onsite, offsite, offshore. Based on region BPO Market is categorized into: North America, Europe, Asia-Pacific, South America, and MEA.
BPO Market Analysis by Service
Finance and accounting BPO (or FAO) is expected to dominate the market over the forecast period which involve entrusting third-party professionals with the oversight and administration of finance and accounting business processes. Clients choose outsourcing services for F&A operations largely to save money, simplify operations for the F&A department, and meet regulatory requirements. Due to the increased standardization of these operations, complicated processes such as external reporting, budgeting, accounting, planning, and forecasting continue to be outsourced in the finance & accounting domain.
BPO Market Analysis by End-User
With a revenue share of more than 45% in 2022, the IT & telecommunications segment dominated the market. During the forecast period, the segment is expected to grow at a significant rate. The rise in the number of IT companies and the rising digitalization is both contributing to the segment's growth. Several telecommunications procedures are being outsourced by telecom firms around the world to lower their overall capital expenditure. Various business tasks, including call center outsourcing, billing operations, finance and accounting, are outsourced by telecom businesses.
Outsourcing allows telecom firms to build a flexible strategy for attracting and retaining more consumers, optimizing current investments, leveraging specialized skills and controlling cost constraints, in addition to lowering capital expenses.
Global BPO Market By Service
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BPO Market Regional Insights
North America was the most dominant regional market in 2022, accounting for over 40% of sales. In part, this growth can be attributed to the increasing adoption of cloud technology and digital services that require frequent assistance and maintenance. The North America BPO market will retain its leading position throughout the forecast years due to the presence of tech giants and legislative & regulatory pressures within the region. In addition to the customization of service offerings to better meet individual needs, cloud computing is also expected to contribute to regional growth.
Global BPO Market By Region
- Largest
- Fastest
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BPO Market Dynamics
BPO Market Driver
Long-term Benefits in the Outsourcing Industry to Create Market Opportunities
- For many company leaders, digital technologies are creating profitable prospects. Long-standing operations and business process outsourcing (BPO) paradigms are being revitalized by more intelligent workflows that use cloud, AI, automation, and the Internet of Things (IoT). Businesses are required to constantly adapt to fully organized and intelligent processes that include employees, consumers, business partners, and suppliers alike to grow and remain relevant.
- Demand for lower operating costs associated with non-core operations and a greater concentration on core skills across a variety of end-use verticals, are driving the market expansion. Furthermore, the market is likely to be driven by new-age businesses' with a greater preference for managing key business tasks in-house and outsourcing support functions to third-party vendors for better growth chances.
BPO Market Restraint
Leaks in Data Security and Confidentiality to Create Market Challenges
- The market is expected to grow rapidly over the next several years, but organizations are concerned about their excessive dependence on external outsourcing service providers, which could represent a security risk to user data confidentiality and integrity.
- Protecting and preserving the security and integrity of customer data is a critical concern for all companies. In addition, the lack of strong frameworks to ensure service quality and increased budgetary pressures are the two major problems limiting the market growth.
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BPO Market Competitive Landscape
The global markets are characterized by a fragmented landscape and fierce competition among industry participants. The players have focused their efforts on bolstering their market position through mergers and acquisitions, alliances, and global development. These techniques assist businesses in expanding their geographic reach and improving their service offerings in both domestic and foreign markets. Accenture, for example, teamed with Inversis in December 2020 to develop outsourced solutions for financial institutions across Europe. The collaboration also allows the former to update the latter's technology platform.
BPO Market Top Players Company Profiles
- Accenture
- IBM Corporation
- Wipro Limited
- Genpact Limited
- Tata Consultancy Services Limited
- Capgemini SE
- Cognizant Technology Solutions Corporation
- Infosys Limited
- EXL Service Holdings, Inc.
- HCL Technologies Limited
- NTT DATA Corporation
- DXC Technology Company
- Concentrix Corporation
- Sykes Enterprises, Incorporated
- Teleperformance SE
- WNS (Holdings) Limited
- Sitel Group
- Alorica Inc.
- Serco Group plc
- Sutherland Global Services Inc.
BPO Market Recent Developments
- In May 2022, Capgemini opens new centres specialized in Cybersecurity and Cloud services in Malaga, Spain
- In April 2022, TTEC Completes Acquisition of Public Sector and Smart City Assets
- In March 2022, CBRE launches specialized healthcare real estate services in India
BPO Key Market Trends
- Artificial Intelligence and Robotics to Handle Business Processes: The use of artificial intelligence and robotic process automation has been the core process of BPO companies since the blended approach is the most effective solution. With the use of AI and RPA along with human intervention, these companies can produce great results. Advances in areas such as robotic process automation, artificial intelligence, machine learning, social media browsing, and big data analytics bode well for the market's future.
- Pandemic Driven Changes: The post-pandemic service industry has undergone huge changes owing to alterations in consumer demand for customer service and other facilities. Mainly, the airline and banking processes have adopted to automation and robotic processes to comply with customer needs.
BPO Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research has identified that the market is expected to benefit from organizations' increased focus on improving business agility to survive the constantly changing business dynamics, as well as ways to improve efficiency while lowering operating costs and emphasizing core competencies. Furthermore, to meet the growing industry demands, organizations are increasingly focusing on lowering the cost of doing business to gain access to global resources. As a result, many organizations around the world are taking advantage of the benefits of business process outsourcing (BPO) services and focusing on core competencies, thereby creating opportunities for market growth.
Scope of the Report/Market Inclusion-Exclusion
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| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 53.61 billion |
| Market size value in 2031 | USD 110.74 billion |
| Growth Rate | 9.1% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
| Historical Year | 2019 |
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on BPO Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on BPO Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the BPO Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the BPO Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the BPO Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the BPO Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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