Asia Pacific Business Process Outsourcing Market

The Asia Pacific business process outsourcing market size was valued at USD 66.65 billion in 2022 and is estimated to surpass) USD 143.57 billion by 2031, expanding at a CAGR of 8.9% during the forecast period, 2023–2031.  The growth of the market is attributed to the rising number of service delivery platforms and increasing demand for outsourcing BPO services in various application industries.

Business process outsourcing (BPO) in the BFSI industry addresses the issues in the industry by establishing data integrity and management and offers relevant, reliable, and timely data delivery to enhance the decision-making process. The back-office operations and management are the essential elements for any organization.

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Several transactional processes including application processing, collection and billing, and order fulfilment are leading toward huge accumulation of data. Effective back-office solutions are crucial to process the overall accumulated data. The market players are engaging in offering cost-effective and reliable services in several industries including manufacturing, healthcare, retail, IT and telecommunications, and BFSI.

Several companies are incorporating BPO as a part of their business strategy to improve the profitability in the business. The activities in an organization can be categorized as critical, core, and non-core activities. The critical activities need expertized skill set while the core activities are related to skills that provide a strategic benefit to the organization.

On the other hand, non-core activities are the supportive activities, which mainly includes customer relationship management. The classification of these activities is crucial to ensure proper of supply resources properly and timely delivery of the services. Several companies are proffering high prominence to the core activities for strong hold their existence in the market and to enlarge their customer base, which leads to the outsourcing of non-core activities.

The companies that are involved in business process outsourcing can choose to outsource specific services or business functions depending on their individual needs, such as logistics, payroll, IT, and legal services. Some of the advantages of outsourcing includes elimination of labor costs and overheads arising from human resource and equipment.

Business Process Outsourcing Market Trends, Drivers, Restraints, and Opportunities

• Increasing adoption of Internet of Things (IoT) and increasing number of start-ups adopting BPO services are propelling the market growth.

• Easy availability of low-cost talent pool in developing countries including China, India, and Philippines is contributing to the market growth.

• Factors such as imposition of heavy tariffs, shortages of skills, and growing attrition rate in the BPO services industry can inhibit the market expansion during the forecast period.

• Increasing adoption of augmented reality (AR) in businesses is anticipated to boost the market growth.

• Several market players are implementing market trend-based strategies, which involve investing in big data analytics, automating back-end office work to improve productivity, and providing transparency in the services. This is anticipated to present numerous opportunities for the expansion of market.

Scope of Business Process Outsourcing Market Report

The Asia Pacific business process outsourcing industry report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Business Process Outsourcing Market Segment Insights

Based on services, the market is classified as procurement outsourcing & supply chain, knowledge process outsourcing, human resources, finance & accounting, and customer services. The customer services segment is anticipated to exhibit a high CAGR owing to the increasing establishment of service centers that require offline and online technological support.

The finance and accounting segment is projected to account for a healthy growth rate during the forecast period due to the increasing deployment of strict regulations in banking sector. However, the human resources segment is expected to account for a sustainable CAGR owing to the rising requirement for services that can handle recruitment and relocation, administration, payment processing, and other employee benefit services.

On the basis of end-users, the market is divided into BFSI, retail, manufacturing, IT & telecommunication, and healthcare. The BFSI segment is anticipated to account a large market share and is speculated to exhibit a high CAGR owing to the easy accessibility of innovative adapted solutions that are intended to meet the existing digitization requirements and provide advanced value-added services.

The IT and telecommunication segment is projected to expand at a CAGR of 5.1% during the analysis period owing to the rising development in the IT sector and rapid industrialization in Asia Pacific. Rising adoption of telecommunication outsourcing services to eliminate the hefty bill is propelling the segment growth.

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In terms of regions, the Asia Pacific business process outsourcing industry analysis is categorized China, India, Japan, Singapore, Malaysia, Philippines, Indonesia, and Thailand. China and India are anticipated to dominate the market, whereas the business process outsourcing market size in China is expected to expand at a CAGR of 9.1% in coming years owing to the rising investment by government in the BPO industry and BPO centric education.

The BPO companies in India are enlarging their existence in Tier 2 and Tier 3 cities and are not just limiting to call centers or contact centers services but are shifting toward acquiring a high-end knowledge and are providing numerous services including financing and accounting.

Moreover, growing support from government is expected to boost the BPO market in India. For instance, the Indian BPO promotion scheme (IBPS) under the Digital India Program is focused on establishing new job opportunities for the development of skilled workforce in the BPO industry. 

Segments

The business process outsourcing industry report has been segmented based on

Services

• Procurement Outsourcing & Supply Chain
• Knowledge Process Outsourcing
• Human Resources
• Finance & Accounting
• Customer Services

End-users

• BFSI
• Retail
• Manufacturing
• IT & Telecommunication
• Healthcare

Regions

• Asia Pacific

• China
• India
• Japan
• Singapore
• Malaysia
• Philippines
• Indonesia
• Thailand

Key Players

• Wipro Limited
• Infosys Limited
• HCL Technologies
• Capgemini
• Amdocs
• Accenture

Competitive Landscape

Some major participants competing in the Asia Pacific business process outsourcing industry analysis include Wipro Limited, Infosys Limited, HCL Technologies, Capgemini, Amdocs, and Accenture. These leading market players are using strategies including mergers, acquisition, new launches, and product development to build their leverage market position.

R&D and production innovation are the key strategies contributing to the growth of the industry. Several companies are focusing on establishing new BPO centers over the world to enhance their market existence and increase their customer base. For instance, Capgemini, one of the leading players in the BPO industry, is providing various BPO services including business analytics, supply chain and procurement, and financial services, among others.

The company’s business process outsourcing (BPO) has collaborated with some of the world’s largest multinational corporations to renovate their business processes in the area of human resources, supply change management, finance and accounting, and procurement, which is consistently bringing new levels of productivity and accelerating business outcomes.