Business Process Outsourcing Market Outlook 2031
The global business process outsourcing market size was valued at USD 257.53 billion in 2022 and is projected to reach USD 510.53 billion by 2031, expanding at a CAGR of 7.9 % during the forecast period, 2023 – 2031.
The growth of the market is attributed to reduction in international trade barriers and enhanced IT and telecommunication capabilities. Business process outsourcing (BPO) is a method of authorizing various business-related operations to third party vendors.
Market Trends, Drivers, Restraints, and Opportunities:
- Companies are leveraging the advantages of outsourcing and concentrating on essential abilities, thus generating opportunities for the business process outsourcing market.
- Crucial need to decrease operational costs is projected to fuel the BPO market during the forecast period.
- Outsourcing is anticipated to fulfill back office necessities of companies, resulting in high productivity and efficient workload management. This factor is expected to boost the market.
- Preserving the integrity and confidentiality of the users data is a major concern for organizations.
Scope of Business Process Outsourcing Market Report
The report on the business process outsourcing market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Business Process Outsourcing Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Services (Human Resources, Finance & Accounting, Procurement & Supply Chain, Customer Service, Knowledge Process Outsourcing, and Others), End-Uses (Healthcare, BFSI, Manufacturing, IT & Telecommunication, Retail, and Others), and Regions
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Infosys Limited, Accenture, Amdocs, HCL, Capgemini, and Wipro
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Business Process Outsourcing Market Segment Insights
Based on services, the global business process outsourcing market is segregated as human resources, finance & accounting, procurement & supply chain, customer service, knowledge process outsourcing, and others. The customer service segment is expected to expand at a substantial CAGR during the forecast period. Customer service BPOs specialize in handling customer enquiries through emails, chats, phones, and social media.
Increasing number of service centers that need offline and online technical support is driving the market. The finance and accounting segment is anticipated to grow at a rapid pace during the forecast period, attributed to rising presence of banking facilities and strict monitoring requirements in banking sector.
On the basis of end-uses, the global business process outsourcing market is fragmented as healthcare, BFSI, manufacturing, IT & telecommunication, retail, and others. The BFSI segment is expected to expand at a robust CAGR during the forecast period. Rising demand for services such as real-time interactions, service expediency, and quick complaint resolutions is expected to fuel the BPOs market.
The IT & telecommunication segment is projected to expand at a rapid pace during the forecast period. The growth of the segment is attributed to rapid industrialization and development of IT companies worldwide. Moreover, government support to sectors such as healthcare and banking to increase investments in technology is estimated to boost the market.
According to National Association of Software and Service Companies (NASSCOM), a trade association for the IT industry in the Indian BPO market, reported that the IT-BPO industry was valued at USD 12.01 billion and is projected to reach USD 117 billion during the forecast period.
In terms of regions, the global business process outsourcing market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The European market is expected to expand at a substantial CAGR during the forecast period.
The growth of the regional market is attributed to provision of customization and flexibility of service offerings in order to fulfill individual needs and increasing demand for cloud computing technology. Moreover, availability of professional workforce, high-quality service, and operational efficiency are the key factors encouraging companies to outsource their businesses.
The market in Latin America is expected to expand at a CAGR of more than 6% during the forecast period. The growth of the market is attributed to increasing development of consumer-packaged goods (CPG) and manufacturing industries in the region. Cost-saving methods and increasing number of people with Portuguese and Spanish language skills are creating opportunities in the market for business process outsourcing in the region.
Segments
The global business process outsourcing market has been segmented on the basis of
Services
- Human Resources
- Finance & Accounting
- Procurement & Supply Chain
- Customer Service
- Knowledge Process Outsourcing
- Others
End-Uses
- Healthcare
- BFSI
- Manufacturing
- IT & Telecommunication
- Retail
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players in the global business process outsourcing market include Infosys Limited, Accenture, Amdocs, HCL, Capgemini, and Wipro. Various range of services permits companies to gain a competitive edge in the business process outsourcing market.
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