Business Process Outsourcing (BPO) Market Trends and Analysis by Service, Vertical, Enterprise Size, Region, and Segment Forecasts to 2027
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Accessing the in-depth insights from the ‘Business Process Outsourcing (BPO)’ report can help you with:
- Market size detailing based on service segments, vertical categories, enterprise size, and regional movement.
- Mapping the entire ecosystem of the value chain and the stages associated with it.
- Detailed country-level insights with breakdown provided for key market segments.
- Evaluate potential growth opportunities in service, vertical, and enterprise-size segments supported by comprehensive qualitative commentary.
- Foresee possible changing dynamics of the sector and align business strategies to capitalize on them.
- List of major business process outsourcing (BPO) vendors market share
How is our ‘Business Process Outsourcing (BPO) Market’ report different from other reports in the market?
- The report captures current and futuristic demand for finished Business Process Outsourcing (BPO) across key sectors and countries/regions from 2019 to 2027 in terms of revenue ($ Million)
- Detailed segmentation by service– Customer Relationship Management (CRM) BPO, Finance and Accounting BPO, Human Resources BPO, Knowledge Process Outsourcing (KPO), Procurement and Supply-Chain BPO, Vertical-specific BPO
- The report also highlights segmentation at the vertical– Construction, Government, Healthcare, Information Technology, Insurance, Manufacturing, Retail, Retail Banking, Transport and Logistics, and Others
- The report also highlights segmentation at the enterprise size level– Micro, Small, Medium, Large, and Very Large
- The study encompasses the identification of the key variables or factors responsible for influencing the market dynamics of the Business Process Outsourcing (BPO) market space. These factors are bifurcated based on their positive and negative attributes into the drivers and restraints.
- Includes competitive landscape of the market depicting the key market participants and different stakeholders of the market value chain along with a list of raw material manufacturers & suppliers and prospective end users
- Detailed company profiles for key vendors of the market with a focus on business overview, financial performance, SWOT analysis, key personnel, and strategic initiatives
We recommend this valuable source of information to:
- Business Process Outsourcing (BPO) Companies
- Human Resource Companies
- Manufacturing Companies
- IT Contractors
- Government Organizations
- Consultants and Analysts
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Business Process Outsourcing (BPO) Market Report Overview
The business process outsourcing (BPO) market demand in terms of revenue was valued at $350.2 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of more than 5% over the forecast period. The following are some of the highlights of the Business Process Outsourcing (BPO) market:
- The digital transformation with increasing investments in technologies such as artificial intelligence (AI), digital assistants, analytics, robotic process automation (RPA), voice recognition, omnichannel capabilities, and smart IVR is expected to drive market growth.
- The growing significance of outsourcing non-core business processes in order to increase focus on more important business tasks is likely to drive market growth over the forecast period.
- The micro-enterprises are the fastest-growing business process outsourcing (BPO) segment by enterprise size.
- North America accounted for the maximum estimated revenue share of more than 34% in 2023.
- Asia Pacific region is anticipated to surpass North America market revenue by 2027 to lead the BPO market with the fastest CAGR of around 7.5% over the forecast period.
Business Process Outsourcing (BPO) Market Outlook, 2019-2027 ($ Billion)
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The BPO market is anticipated to face challenges with stringent data security regulations, increased emotions of trade protectionism to impact offshoring, and in-house process automation over the forecast period. Moreover, investments in new technology by industry vendors are predicted to play an instrumental role in overcoming impending challenges.
The massive increase in the amount of data collected by companies including messages, reviews, feedback, videos, and web browsing, among others is creating the need for service providers who can help in efficiently managing data. Thus, BPO companies are focusing on expanding their services to provide actionable insights and upcoming business opportunities specific to industries such as BFSI, telecommunications, utilities, automotive, and healthcare among others.
Market Size in 2023 | $350.2 Billion |
CAGR (2022-2027) | >5% |
Forecast Period | 2023 – 2027 |
Historic Data | 2019 – 2022 |
Service Segment | Customer Relationship Management (CRM) BPO, Finance and Accounting BPO, Human Resources BPO, Knowledge Process Outsourcing (KPO), Procurement and Supply-Chain BPO, Vertical-specific BPO |
Vertical Segment | Construction, Government, Healthcare, Information Technology, Insurance, Manufacturing, Retail, Retail Banking, Transport and Logistics, Others |
Enterprise Size Segment | Micro (Less than 50), Small (51-250), Medium (251-1,000), Large (1,001- 4,999), and Very Large (5,000+) |
Regional Segment | North America, Western Europe, Central & Eastern Europe, Asia Pacific, South & Central America and Middle East & Africa |
Key Companies | Accenture Plc, Aon Plc, Automatic Data Processing Inc, Capita Plc, Concentrix Corp, Conduent Inc, Genpact Ltd, Randstad NV, Capgemini SE, Sitel Worldwide Corp, Tata Consultancy Services Ltd, and Teleperformance SE |
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Business Process Outsourcing (BPO) Market Segmentation by Service
Vertical-specific BPO is leading the service segment with a maximum estimated revenue share of around 27% in 2023 and is projected to continue its dominance over the forecast period. The increasing demand for processes such as insurance and annuities policy administration, claims and transaction processing, and credit card analytics for banks and insurers is projected to support segmental growth over the predicted timeline.
Business Process Outsourcing (BPO) Market Analysis by Service, 2023 (%)
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The vertical-specific BPO segment is closely followed by human resources BPO services. The businesses are outsourcing non-revenue generating HR tasks to expert HR service providers. This is because of the rising competitive challenges in the global marketplace that persuade many enterprises to dedicate more time and resources to their core business activities. In addition, outsourcing non-revenue generating tasks frees up valuable human resources for more important business functions such as developing strategies, revenue generation, and promotion to aid overall organizational growth.
Business Process Outsourcing (BPO) Market Segmentation by Enterprise Size
Based on enterprise size, the very large enterprise segment is dominating the BPO market owing to its greater adoption of digital solutions, higher ICT budgets, and higher volume of transactions. These enterprises are projected to lead the market due to their greater propensity to spend on outsourcing their non-core functions.
Micro enterprises is exhibiting the highest estimated CAGR of 6.6% in the BPO market over the forecast period. Micro enterprises with less than 50 employees’ strength mainly focus on their core functionalities and thus outsource non-revenue generating tasks, particularly for efficient utilization of their workforce.
Business Process Outsourcing (BPO) Market Analysis By Enterprise Size, 2023 (%)
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Business Process Outsourcing (BPO) Market Segmentation by Vertical
The manufacturing segment led the BPO market with the maximum revenue share and is anticipated to grow at an estimated CAGR of 4.3% over the forecast period. The increasing incorporation of advanced technologies in manufacturing processes such as IoT, AI/ML, robotics, and process automation among others supports the growth of the manufacturing sector. Businesses are outsourcing specific tasks and stages of product development to bring new products to market quickly and efficiently.
The manufacturing segment is estimated to be closely followed by the information technology (IT) sector throughout the forecast timeframe. This is because of the increasing spending on BPO from the IT sector along with the rise in adoption of cloud services & cloud migrations. Furthermore, automation of business processes and cost optimization also are expected to drive the vertical demand. The outsourcing trend around customer support is further projected to aid the segmental growth for the IT sector over the forecast period.
Meanwhile, the retail banking sector is anticipated to grow at the fastest CAGR of 6.6% over the forecast period. This growth is anticipated to be supported by the ongoing incorporation of digital solutions including secured one-time app payment, usage of mobile apps, online payments for shopping and bookings, and online banking. In addition, the option of buy now pay later is predicted to open new avenues for development within this specific sector. Thus, the ongoing digitalization is projected to support the noticeable growth of the retail banking sector.
Business Process Outsourcing (BPO) Market Analysis by Vertical, 2023 (%)
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Business Process Outsourcing (BPO) Market Segmentation by Regions
The presence of several BPO firms in the regional market and the rising adoption of protectionism strategies in the US will boost local employment and economic growth. Enterprises are driven to outsource their processes to domestic vendors, thus driving the BPO market in the region.
China is leading the regional market with an estimated highest revenue share in 2023. Moreover, India is projected to exhibit the fastest growth with a revenue CAGR of 10.9% over the forecast period due to being the key outsourcing destination for many foreign companies. In addition, the availability of labor at a relatively low cost, round-the-clock assistance, and sufficient technological capabilities are major factors attracting foreign companies to outsource their services in the Indian BPO market.
Western Europe is the third largest region after the Asia Pacific in the business process outsourcing (BPO) market. The regional revenue is majorly contributed by the UK and Germany. The availability of a skilled workforce, technological infrastructure, and the quality of services offered by the local BPOs are the major factors contributing to the regional market growth. Furthermore, the increasing number of SMEs and startups in the region is anticipated to drive market growth in the future.
Business Process Outsourcing (BPO) Market Analysis by Region, 2023 (%)
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Business Process Outsourcing (BPO) Market – Competitive Landscape
The companies operating in the business process outsourcing (BPO) market offer services as per the requirements of enterprises ranging from marketing, sales & customer service, finance & accounting support, and compliance among others. The companies are continuously involved in the expansion of their product offering to meet the current business requirements that primarily include IT & telecom, human resource, and analytics services.
The key companies in the Business Process Outsourcing (BPO) market include:
- Accenture Plc
- Aon Plc
- Automatic Data Processing Inc
- Capita Plc
- Concentrix Corp
- Conduent Inc
- Genpact Ltd
- Randstad NV
- Capgemini SE
- Sitel Worldwide Corp
- Tata Consultancy Services Ltd
- Teleperformance SE
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Business Process Outsourcing (BPO) Market Segments and Scope
GlobalData Plc has segmented the business process outsourcing (BPO) market report by service, vertical, enterprise size, and region:
Business Process Outsourcing (BPO) Market by Service Outlook (Revenue; $ Million, 2019-2027)
- Customer Relationship Management (CRM) BPO
- Finance and Accounting BPO
- Human Resources BPO
- Knowledge Process Outsourcing (KPO)
- Procurement and Supply-Chain BPO
- Vertical-specific BPO
- Others
Business Process Outsourcing (BPO) Market by Vertical Outlook (Revenue; $ Million, 2019-2027)
- Construction
- Government
- Healthcare
- Information Technology
- Insurance
- Manufacturing
- Retail
- Retail Banking
- Transport and Logistics
- Others
Business Process Outsourcing (BPO) Market by Enterprise Size Outlook (Revenue; $ Million, 2019-2027)
- Micro (Less than 50)
- Small (51-250)
- Medium (251-1,000)
- Large (1,001-4,999)
- Very Large (5,000+)
Business Process Outsourcing (BPO) Market Regional Outlook (Revenue; $ Million, 2019-2027)
- North America
- US
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Netherlands
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Singapore
- Australia
- Rest of Asia Pacific
- South & Central America
- Brazil
- Argentina
- Colombia
- Rest of South & Central America
- Middle East & Africa
- Saudi Arabia
- South Africa
- UAE
- Rest of Middle East & Africa
Scope
The market intelligence report provides an in-depth analysis of the following –
- Business Process Outsourcing (BPO) market outlook: analysis as well as historical figures and forecasts of volume and revenue opportunities from service, vertical, enterprise size, and regional segments
- The competitive landscape: an examination of the positioning of leading players in the business process outsourcing (BPO) market
- Company Analysis: analysis of the market position of leading providers in the business process outsourcing (BPO) market
- Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.
Key Highlights
The global business process outsourcing (BPO) market demand in terms of revenue valued at $350.2 Billion in 2023 , growing at a compound annual growth rate (CAGR) of 5.1% from 2022 to 2027.
Reasons to Buy
- This market intelligence report offers a thorough, forward-looking analysis of the global business process outsourcing (BPO) market by service, vertical, enterprise size, and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
- Accompanying GlobalData’s Forecast products, the report examines the assumptions, drivers, deals, strategic initiatives, and trend analysis in Business Process Outsourcing (BPO) markets.
- Detailed segmentation by service – customer relationship management (CRM) BPO, finance and accounting BPO, human resources BPO, knowledge process outsourcing (KPO), procurement and supply-chain BPO, vertical-specific BPO. The second level of segmentation includes at vertical level – construction, government, healthcare, information technology, insurance, manufacturing, retail, retail banking, transport and logistics, others. The last one is enterprise size – micro (Less than 50), small (51-250), medium (251-1,000), large (1,001- 4,999), and very large (5,000+)
- The report includes 150+ figures and tables providing in-depth analysis of the market size, forecast, and supporting factors which are tailor-made for an executive-level audience, with enhanced presentation quality.
- The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in business process outsourcing (BPO) market.
- The report evaluates the entire value chain of the business process outsourcing (BPO) market space while highlighting the key functions of the industry.
- The report offers a dedicated list of key vendors and their regional market shares under competitive landscape.
Key Players
Accenture PlcAon Plc
Automatic Data Processing Inc
Capita Plc
Concentrix Corp
Conduent Inc
Genpact Ltd
Randstad NV
Capgemini SE
Sitel Worldwide Corp
Tata Consultancy Services Ltd
Teleperformance SE
Table of Contents
Table
Figures
Frequently asked questions
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What was the business process outsourcing (BPO) market size in 2023?
The business process outsourcing (BPO) market size was estimated at $350.2 billion in 2023.
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What will the business process outsourcing (BPO) market growth rate be during 2022-2027?
The business process outsourcing (BPO) market will grow at a CAGR of more than 5% over the forecast period.
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What are the key business process outsourcing (BPO) market drivers?
The growing significance of outsourcing non-core business processes to increase focus on more important business tasks is likely to drive business process outsourcing (BPO) market growth over the forecast period.
-
Which was the leading segment in the BPO market in 2023?
Vertical-specific BPO was the leading segment in the BPO market in 2023.
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Which was the dominating vertical in the BPO market in 2023?
Manufacturing vertical dominated the BPO market in 2023.
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Which was the prominent enterprise size in the BPO market in 2023?
Very Large (5,000+) enterprises was the leading enterprise size in the BPO market in 2023.
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Which are the leading Business Process Outsourcing (BPO) market companies?
The key vendors in the business process outsourcing (BPO) market are Accenture Plc, Aon Plc, Automatic Data Processing Inc., Capita Plc, and Concentrix Corp, among others.
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