The global business process outsourcing market will grow at an impressive 8.5% CAGR to touch the US$ 620 Bn mark through 2032. North America is likely to capture a lion’s share in the overall BPO market.
Organizations are increasingly looking for specialized companies that provide the much-needed support services to business processes that can be outsourced without the direct investment of dedicated time and human resources. Hence, the demand for BPO services experienced a spike in the past half-decade and reached US$ 232.3 Bn in 2021, growing at a 7% CAGR throughout the historic period.
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The advance of e-commerce and health industries combined with the pre-existing IT industries has led to generating a high demand for BPOs.
With remote working becoming a possibility, BPOs are likely to benefit a lot. First bigger organizations will rely on them and secondly, they will be open to hiring the best employees from across the country or globe. The COVID-induced pandemic has introduced new normal and opened boundaries for BPOs.
The BPO market is anticipated to benefit from the swelling focus of organizations on enhancing business agility, surviving the constant changes in business dynamics. Also, organizations are increasingly looking for specialized companies that provide much-needed support services to business processes that can be outsourced without any direct investment of dedicated time and human resources.
What are the reasons for the growth in the demand for business process outsourcing?
Demand for business process outsourcing is growing as monopolistic company practises are being replaced by business cultures that value shared workloads and enhanced outcomes.
BPOs stand to gain significantly from the option of remote work. First, larger firms will depend on them, and second, they will be willing to hire the top workers from all over the nation or the world. A new normal and new boundaries for BPOs have been established by the COVID-induced pandemic.
Varied firms including Facebook have indicated that “if remote working continues, they will revise salaries, hire more capable personnel available in less expensive economies”.
Key Takeaways:
- North America dominates the BPO market to hold with a market share of over 3/5th of the overall market value.
- Europe is the second largest with a market share of more than 1/4th of the global market share.
- By end-use, IT & Telecommunications account for over 57% of the total business process outsourcing (BPO) market value.
- By services, demand for transparency and increased regulations are driving companies to standardize their F&A (Finance and Accounting) BPO activities.
Growth Drivers:
- Demand in adoption of robotic process automation has resulted in growth of the BPO industry.
- The shift in emphasis from monopolistic company strategies to a shared workload culture is driving demand for business process outsourcing in order to achieve better results and maintain profitability.
Competitive Landscape:
The competitive landscape of the business process outsourcing market focuses on offering various ground-breaking marketing tactics, technological advancements, mergers, and acquisitions to expand their market ground
- In December 2021, Accenture (NYSE: ACN) has completed the acquisition of Tambourine, an e-commerce customer experience agency with award-winning capabilities in cloud-based technologies in Japan.
- In January 2022, Genpact Ltd, the business process outsourcing (BPO) company listed on the New York Stock Exchange (NYSE), bought Milpitas, California-based data analytics firm Enquero Inc. in the 14th acquisition
Key Companies Profiled by Fact.MR
- Accenture Plc.
- IBM Corporation
- Cognizant
- Concentrix
- Wipro Limited
- Genpact
- ADP Data Processing Inc.
- EXL Service
- Invensis Technologies Pvt. Ltd.
- SunTec India