The global ITO and BPO IT outsourcing market was valued at USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of XX% during the forecast period, 2023–2031. The practice of contracting out various business-related operations to third-party suppliers is known as business process outsourcing (BPO).
Although BPO was formerly exclusively useful to manufacturing firms, such as soft drink manufacturers, who outsourced significant portions of their supply chains; however, it now applies to service outsourcing. Third-party providers provide various organizations business process outsourcing (BPO) services such as IT, finance & accounting, back-office process, e-commerce and support, procurement, and human resource & recruitment process. Data confidentiality and integrity are integral part of outsourcing.
The COVID-19 pandemic has caused unprecedented economic turbulence throughout the world. As part of the cost-cutting measures, global corporations are expected to reduce their IT expenditure.
Enterprises' strict steps to restrict discretionary expenditure are expected to have an impact on the conversion of new transactions in the pipeline, the assignment of new contracts, and the postponement of contract renewals. Existing projects, on the other hand, are likely to see a drop of billable staff, influencing pricing discussions.
ITO and BPO IT Outsourcing Market Trends, Drivers, Restraints and Opportunities
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The primary growth drivers of the market are cost reduction and requirement for enhanced efficiency.
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Rising use of technology such as cloud computing and analytics, as well as the modernization of ICT infrastructure, is propelling the market growth.
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Rising demand for BPO services from BFSI, healthcare, and manufacturing as a result of IT businesses and global industrialization are driving the growth of the market.
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Inadequate frameworks to ensure service quality, which restrict the use of technology, can create challenges for the market.
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Growing awareness of benefits of BPO including increased cost efficiency, innovative tailored solutions, and value-added services is boosting the market growth.
Scope of ITO and BPO IT Outsourcing Market Report
The report on ITO and BPO IT outsourcing market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
Attributes
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Details
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Report Title
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ITO and BPO IT Outsourcing Market - Global Industry Analysis, Size, Share, Growth, 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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Types (IT Outsourcing, Finance and Accounting Outsourcing, Back-office outsourcing, E-commerce support services, Training and Development Outsourcing, and Others), Verticals (BFSI, IT, Retail and Consumer Goods, Manufacturing, Life Sciences, and Defense), End-users (Government, Telecommunications, Healthcare, and Others)
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Regional Scope
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Asia Pacific, North America, Europe, Latin America, and Middle East & Africa
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Report Coverage
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Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast
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Key Players Covered in the Report
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ADP, LLC, Conduent Inc., Accenture PLC, WNS (Holdings) Ltd, Capgemini, Infosys BPM Limited, IBM Corporation, Tata Consultancy Services Limited (TCS), TTEC Holdings, Inc., and Conneqt Business Solution Limited
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ITO and BPO IT Outsourcing Market Insights
IT outsourcing segment to register a robust CAGR
Based on types, the market can be fragmented into IT outsourcing, finance and accounting outsourcing, back-office outsourcing, e-commerce support services, training and development outsourcing, and others. In fiscal 2020, the IT sourcing segment accounted for over 85% of the market share. The segment's significant share is due to increased demand for infrastructure services and cloud service outsourcing.
BFSI segment to exhibit a substantial growth rate during the forecast period
On the basis of verticals, the market can be divided into BFSI, IT, retail and consumer goods, manufacturing, life sciences, and defense. The BFSI segment accounted for over 55% of revenue share. Government state bodies objective of achieving a cashless economy through digital banking and fintech technology has aided the BFSI segment growth.
Government segment is projected to hold a significant market share
On the basis of end-users, the market can be segmented into government, telecommunications, healthcare, and others. The government segment held 30% of the market and is seeking to outsource IT activities in order to cut IT department costs in government offices. The government's efforts to improve urbanization and increase demand from various industrial verticals are driving the segment growth.
Between FY 2020 and FY 2025, the healthcare segment is estimated to expand at a CAGR of 12% during the forecast period. The healthcare industry is undergoing a digital revolution, which can result in a surge in demand for technology-enabled products and services such as telehealth, telemedicine, healthcare analytics, and electronic health records (EHR).
North America to account a large market share
On the basis of region, the market can be classified into North America, Europe, Asia Pacific, Middle East & Africa and Latin America. North America constituted a large market share in 2020. The presence of large tech corporations and start-ups in the region is primarily responsible for the growth.
In order to deliver complete BPO services to their clients, companies in the area are substantially investing in the development of sophisticated technologies such as analytics, big data, cloud computing, and Artificial Intelligence (AI). On the other hand, the market in Asia Pacific market is developing at a high growth rate owing t presence of large BPO services in nations such as China and India.
Segments
By Types
- IT outsourcing
- Finance and accounting outsourcing
- Back-office outsourcing
- E-commerce support services
- Training and development outsourcing
- Others
By Verticals
- BFSI
- IT
- Retail and consumer goods
- Manufacturing
- Life sciences
- Defense
By End-users
- Government
- Telecommunications
- Healthcare
- Other
By Regions
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- Latin America
By Key Players
- ADP, LLC
- Conduent Inc
- Accenture PLC
- WNS (Holdings) Ltd
- Capgemini
- Infosys BPM Limited
- IBM Corporation
- Tata Consultancy Services Limited (TCS)
- TTEC Holdings, Inc.
- Conneqt Business Solution Limited
Competitive Landscape
Key players of this market are ADP, LLC, Conduent Inc., Accenture PLC, WNS (Holdings) Ltd, Capgemini, Infosys BPM Limited, IBM Corporation, Tata Consultancy Services Limited (TCS), TTEC Holdings, Inc., and Conneqt Business Solution Limited, among others.
