Asia Pacific Business Process Outsourcing Market by Services (Procurement Outsourcing & Supply Chain, Knowledge Process Outsourcing, Human Resources, Finance & Accounting, and Customer Services), End-users (BFSI, Retail, Manufacturing, IT & Telecommunication, and Healthcare), and Regions (Asia Pacific [China, India, Japan, Singapore, Malaysia, Philippines, Indonesia, and Thailand]) - Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
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.
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
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Increasing adoption of Internet of Things (IoT) and increasing number of start-ups adopting BPO services are propelling the market growth.
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Easy availability of low-cost talent pool in developing countries including China, India, and Philippines is contributing to the market growth.
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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.
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Increasing adoption of augmented reality (AR) in businesses is anticipated to boost the market growth.
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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.
Attributes |
Details |
Report Title |
Business Process Outsourcing Market - Asia Pacific Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year |
2022 |
Historic Data |
2018–2021 |
Forecast Period |
2023–2031 |
Segmentation |
Services (Procurement Outsourcing & Supply Chain, Knowledge Process Outsourcing, Human Resources, Finance & Accounting, and Customer Services), End-users (BFSI, Retail, Manufacturing, IT & Telecommunication, and Healthcare) |
Regional Scope |
Asia Pacific (China, India, Japan, Singapore, Malaysia, Philippines, Indonesia, and Thailand ) |
Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast |
Key Players Covered in the Report |
Wipro Limited, Infosys Limited, HCL Technologies, Capgemini, Amdocs, and Accenture |
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.
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.
2. Assumptions and Acronyms Used
3. Research Methodology
4. Business Process Outsourcing Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Business Process Outsourcing Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Business Process Outsourcing Market - Supply Chain
4.5. Global Business Process Outsourcing Market Forecast
4.5.1. Business Process Outsourcing Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Business Process Outsourcing Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Business Process Outsourcing Market Absolute $ Opportunity
5. Global Business Process Outsourcing Market Analysis and Forecast by End Users
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by End Users
5.2.2. Y-o-Y Growth Projections by End Users
5.3. Business Process Outsourcing Market Size and Volume Forecast by End Users
5.3.1. BFSI
5.3.2. Retail
5.3.3. Manufacturing
5.3.4. IT & Telecommunication
5.3.5. Healthcare
5.4. Absolute $ Opportunity Assessment by End Users
5.5. Market Attractiveness/Growth Potential Analysis by End Users
6. Global Business Process Outsourcing Market Analysis and Forecast by Region
6.1. Market Trends
6.2. Introduction
6.2.1. Basis Point Share (BPS) Analysis by Region
6.2.2. Y-o-Y Growth Projections by Region
6.3. Business Process Outsourcing Market Size and Volume Forecast by Region
6.3.1. North America
6.3.2. Latin America
6.3.3. Europe
6.3.4. Asia Pacific
6.3.5. Middle East and Africa (MEA)
6.4. Absolute $ Opportunity Assessment by Region
6.5. Market Attractiveness/Growth Potential Analysis by Region
6.6. Global Business Process Outsourcing Demand Share Forecast, 2019-2026
7. North America Business Process Outsourcing Market Analysis and Forecast
7.1. Introduction
7.1.1. Basis Point Share (BPS) Analysis by Country
7.1.2. Y-o-Y Growth Projections by Country
7.2. North America Business Process Outsourcing Market Size and Volume Forecast by Country
7.2.1. U.S.
7.2.2. Canada
7.3. Absolute $ Opportunity Assessment by Country
7.4. North America Business Process Outsourcing Market Size and Volume Forecast by End Users
7.4.1. BFSI
7.4.2. Retail
7.4.3. Manufacturing
7.4.4. IT & Telecommunication
7.4.5. Healthcare
7.5. Basis Point Share (BPS) Analysis by End Users
7.6. Y-o-Y Growth Projections by End Users
7.7. Market Attractiveness/Growth Potential Analysis
7.7.1. By Country
7.7.2. By Product Type
7.7.3. By Application
7.8. North America Business Process Outsourcing Demand Share Forecast, 2019-2026
8. Latin America Business Process Outsourcing Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.1.3. Latin America Average Pricing Analysis
8.2. Latin America Business Process Outsourcing Market Size and Volume Forecast by Country
8.2.1. Brazil
8.2.2. Mexico
8.2.3. Rest of Latin America
8.3. Absolute $ Opportunity Assessment by Country
8.4. Latin America Business Process Outsourcing Market Size and Volume Forecast by End Users
8.4.1. BFSI
8.4.2. Retail
8.4.3. Manufacturing
8.4.4. IT & Telecommunication
8.4.5. Healthcare
8.5. Basis Point Share (BPS) Analysis by End Users
8.6. Y-o-Y Growth Projections by End Users
8.7. Market Attractiveness/Growth Potential Analysis
8.7.1. By Country
8.7.2. By Product Type
8.7.3. By Application
8.8. Latin America Business Process Outsourcing Demand Share Forecast, 2019-2026
9. Europe Business Process Outsourcing Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Europe Average Pricing Analysis
9.2. Europe Business Process Outsourcing Market Size and Volume Forecast by Country
9.2.1. Germany
9.2.2. France
9.2.3. Italy
9.2.4. U.K.
9.2.5. Spain
9.2.6. Russia
9.2.7. Rest of Europe
9.3. Absolute $ Opportunity Assessment by Country
9.4. Europe Business Process Outsourcing Market Size and Volume Forecast by End Users
9.4.1. BFSI
9.4.2. Retail
9.4.3. Manufacturing
9.4.4. IT & Telecommunication
9.4.5. Healthcare
9.5. Basis Point Share (BPS) Analysis by End Users
9.6. Y-o-Y Growth Projections by End Users
9.7. Market Attractiveness/Growth Potential Analysis
9.7.1. By Country
9.7.2. By Product Type
9.7.3. By Application
9.8. Europe Business Process Outsourcing Demand Share Forecast, 2019-2026
10. Asia Pacific Business Process Outsourcing Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Asia Pacific Average Pricing Analysis
10.2. Asia Pacific Business Process Outsourcing Market Size and Volume Forecast by Country
10.2.1. China
10.2.2. Japan
10.2.3. South Korea
10.2.4. India
10.2.5. Australia
10.2.6. Rest of Asia Pacific (APAC)
10.3. Absolute $ Opportunity Assessment by Country
10.4. Asia Pacific Business Process Outsourcing Market Size and Volume Forecast by End Users
10.4.1. BFSI
10.4.2. Retail
10.4.3. Manufacturing
10.4.4. IT & Telecommunication
10.4.5. Healthcare
10.5. Basis Point Share (BPS) Analysis by End Users
10.6. Y-o-Y Growth Projections by End Users
10.7. Market Attractiveness/Growth Potential Analysis
10.7.1. By Country
10.7.2. By Product Type
10.7.3. By Application
10.8. Asia Pacific Business Process Outsourcing Demand Share Forecast, 2019-2026
11. Middle East & Africa Business Process Outsourcing Market Analysis and Forecast
11.1. Introduction
11.1.1. Basis Point Share (BPS) Analysis by Country
11.1.2. Y-o-Y Growth Projections by Country
11.1.3. Middle East & Africa Average Pricing Analysis
11.2. Middle East & Africa Business Process Outsourcing Market Size and Volume Forecast by Country
11.2.1. Saudi Arabia
11.2.2. South Africa
11.2.3. UAE
11.2.4. Rest of Middle East & Africa (MEA)
11.3. Absolute $ Opportunity Assessment by Country
11.4. Middle East & Africa Business Process Outsourcing Market Size and Volume Forecast by End Users
11.4.1. BFSI
11.4.2. Retail
11.4.3. Manufacturing
11.4.4. IT & Telecommunication
11.4.5. Healthcare
11.5. Basis Point Share (BPS) Analysis by End Users
11.6. Y-o-Y Growth Projections by End Users
11.7. Market Attractiveness/Growth Potential Analysis
11.7.1. By Country
11.7.2. By Product Type
11.7.3. By Application
11.8. Middle East & Africa Business Process Outsourcing Demand Share Forecast, 2019-2026
12. Competition Landscape
12.1. Global Business Process Outsourcing Market: Market Share Analysis
12.2. Business Process Outsourcing Distributors and Customers
12.3. Business Process Outsourcing Market: Competitive Dashboard
12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
12.4.1. Wipro Limited
12.4.2. Infosys Limited
12.4.3. HCL Technologies
12.4.4. Capgemini
12.4.5. Amdocs
12.4.6. Accenture