BUSINESS PROCESS OUTSOURCING MARKET ANALYSIS

Business Process Outsourcing MarketSize and Trends

The global business process outsourcing market size was valued at US$ 261.89 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 9.4% from 2023 to 2030.  The market is fueled by the growing focus of organizations on enhancing business agility and surviving the continuously changing business dynamics. In addition, increased efficiency and productivity of the firms, reduced time to market for new products, and the need to lower costs are also driving the Business Process Outsourcing market. Further, the increasing use of SaaS-based solutions and the rapid adoption of process automation are accelerating the business process outsourcing market growth.

Global Business Process Outsourcing Market Segmentation:

The global business process outsourcing market report is segmented into Service Type and End-Use.

Based on Service Type, the market is segmented into Finance & Accounting, Human Resource, Knowledge Process Outsourcing, Procurement & Supply Chain, Customer Services, and Others. Out of which, Customer Services is expected to dominate the global market over the forecast period and this is attributed to the rise in number of service centers requiring offline as well as online technical support all over the world. Thus, the adoption of customer service outsourcing is increasing across various sectors, which in turn is driving growth of this segment.

Finance & Accounting segment is also expected to witness significant growth in the near future and this is owing to the increasing number of banking facilities and stringent regulatory needs in banking sector, leading to rise in demand for outsourcing services. As this service offers significant cost reduction in operation costs, the demand for these services is increasing, further driving growth of this segment.

Based on End-Use, the market is segmented into BFSI, Healthcare, Manufacturing, IT & Telecommunication, Retail, and Others. Out of which, IT & Telecommunication is expected to dominate the global market over the forecast period and this is attributed to the rise in industrialization around the world and increasing IT businesses. Telecom companies are increasingly outsourcing business functions from call-center outsourcing to billing operations for accounting and finance.

BFSI segment is also expected to witness significant growth in the near future and this is owing to the increasing adoption of BPO in financial institutions as an instrument for improving the cost efficiency. Moreover, with increasing digitalization, the need for business process outsourcing is increasing in BFSI sector, which is likely to boost growth of this segment.

Global Business Process Outsourcing Market Trends:

Adoption of inorganic growth strategies by market players is a major growth

Major players in the global business process outsourcing market are engaging in inorganic growth strategies such as partnerships, mergers & acquisitions, and regional expansion. For instance, in September 2022, Capgemini completed acquisition of Aodigy Asia Pacific, which allows Sales force consumer engagement solutions such as cloud migration, customer interaction, sales optimization, and business process automation through its operations in Singapore and Vietnam. Such inorganic growth strategies by market players are likely to continue in the market.

Emergence of innovative technologies is also trending in the market

Business process outsourcing service providers offer various services with cost-effective solutions in conventional way. With emergence of novel advanced technologies such as Artificial Intelligence, BPO services are changing process by accelerating growth and reducing costs. Increasing number of companies are investing in these novel technologies for reducing cost of infrastructure and office space. This trend is likely to continue in the global business process outsourcing market over the forecast period.