As the competition in the business world becomes fiercer, companies face increasing pressure to optimize costs, enhance efficiency, and focus on their core competencies. Courtesy of this, the business process outsourcing industry is taking center stage.
To capitalize on emerging opportunities and stay ahead of the competition, BPO providers, such as Accenture, HCL Technologies Limited, TTEC Holdings, Teleperformance SE, and Wipro Limited, are employing different organic and inorganic strategies. They are incorporating advanced technologies like AI and RPA into their BPO service offerings.
Many companies are launching new outsourcing services for industries like IT, BFSI, and manufacturing. Other prominent tactics employed by top BPO providers include new facility expansions, mergers and acquisitions, and partnerships.
In July 2023, NTT DATA, a leading digital business and IT services firm, launched MDR outsourcing service for security management. The new outsourcing is intended to prevent security incidents and minimize damage when incidents occur.
NTT DATA initially provided the new service in Japan in July 2023 and then expanded it worldwide in 2024. Through MDR service, advanced security engineers with deep experience will provide support to client companies. They will execute a comprehensive set of measures to identify the cause, implement emergency, and prevent recurrence.
Similarly, in February 2023, WNS (Holdings) Ltd., a prominent provider of global business process management (BPM) was recognized as the leader in insurance BPO services across Europe, the United States, and Australia by ISG. The company has been striving for a long time to accelerate digital transformation initiatives across industries like insurance.
According to a recent report published by Coherent Market Insights, the global business process outsourcing market value is forecast to increase from US$ 280.64 billion in 2023 to US$ 525.23 billion by 2030. Global demand for business process outsourcing will likely grow at a CAGR of 9.4% during the assessment period.
Rapid transition of businesses towards outsourcing services to improve productivity and reduce costs is a prominent factor propelling growth of the global business process outsourcing market. Moreover, rising popularity of cloud computing will likely benefit the industry in the coming years.
Today, businesses across the world are increasingly outsourcing their different non-core tasks to enhance efficiency and productivity, reduce costs, and completely focus on core competencies. This, in turn, is boosting the global BPO industry and the trend will likely continue through 2030.
“Growing adoption of advanced technologies like artificial intelligence (AI) and robotic process automation (RPA) is transforming BPO operations, making outsourcing more efficient, cost-effective, and attractive,” says a lead analyst at Coherent Market Insights.
Regionally, North America is expected to dominate the global BPO market during the forecast period. This is due to surging demand for business process outsourcing services from technology giants in nations like the United States. Similarly, increasing popularity of customized BPO services and cloud computing also supports market expansion in the region.
