USD 314.4 billion
Report ID:
SQMIG45B2086 |
Region:
Global |
Published Date: May, 2025
Pages:
165
|Tables:
118
|Figures:
78
Global Business Process Outsourcing Market size was valued at USD 314.4 billion in 2023 and is poised to grow from USD 332.01 billion in 2024 to USD 513.4 billion by 2032, growing at a CAGR of 5.6% during the forecast period (2025-2032).
The Business Process Outsourcing market is fueled by elements including the growing emphasis placed by businesses on enhancing productivity and adaptability, reducing operating expenses, and emphasizing core competencies to survive the ever-changing business dynamics. Several organizations are also concentrating more on lowering the cost of doing business to access global resources to fulfill the expanding Business Process Outsourcing industry demands. These factors have promoted the adoption of business process outsourcing (BPO) services across several firms that concentrate on technological advancements like AI and cloud computing for enhancing organizational efficiency. The COVID-19 pandemic's effects in 2019 also increased demand for standardized platform services, which give BPOs the ability to handle complicated business procedures and open up new opportunities for Business Process Outsourcing market expansion. BPO is the practice of assigning duties and operations for several business functions to outside service providers. Due to their advantages, including lower prices, more flexibility, and higher service quality, BPO services are in high demand. Additionally, BPO enables businesses to emphasize their core business operations so that they can provide customers with additional value. Due to its advantages, BPO services are in demand throughout end-use industries, including IT & telecommunication, BFSI, and healthcare.
One of the key factors driving the expansion of business process outsourcing is the rising popularity of cloud computing. Increased time to market, enhanced quality control and cost savings are all made possible by cloud computing for BPO providers. Additionally, cloud computing in BPO ensures immediate access to systems and support for computing, flexible provisioning, and all-access whenever necessary to meet business needs. During the forecast period, it is expected that these advantages will have a positive influence on the adoption of cloud computing in the business process outsourcing market. The growth prospects of the Business Process Outsourcing market are, however, expected to be constrained during the forecast period by concerns about confidentiality and intellectual property rights. The need to cut operational costs frequently forces the outsourcer to operate in nations without a well-established legal system to safeguard it against confidentiality and intellectual property rights violations. Due to the possibility that even a small mistake could permanently harm the outsourcing company's position in the market, outsourcing companies frequently worry about how the outsources handle the information shared. Additionally, Business Process Outsourcing market growth is expected to benefit from the growing number of government initiatives being carried out to encourage the use of cloud computing in the Business Process Outsourcing industry.
Beginning in 2019, there were social and economic disruptions brought on by the sharp rise in COVID-19 cases, and outsourcing tasks became more difficult. However, it is expected that the modifications made to business operations as a result of these disruptions will ultimately fuel the Business Process Outsourcing market. Business Continuity Plans (BCP) have been restructured by BPO companies to accommodate distributed workforces, which has altered their business models. Businesses now understand the value of disaster recovery and continuous operations planning for creating more dependable business models that can withstand unforeseeable disruptions like the COVID-19 pandemic. For instance, the major Business Process Outsourcing market players, such as Accenture and Infosys Limited (Infosys BPM), claimed that more than 80–90% of their staff members were working from remote locations as a result of the COVID-19 pandemic in 2019. The subsequent disruption to the workforce management process resulted in a lack of infrastructure equipment and increased data security risks, which in turn caused decreased work efficiency and delays in project completion in the Business Process Outsourcing market.
US Business Process Outsourcing Market is poised to grow at a sustainable CAGR for the next forcast year.
Market snapshot - 2025-2032
Global Market Size
USD 314.4 billion
Largest Segment
BFSI
Fastest Growth
BFSI
Growth Rate
5.6% CAGR
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Global Business Process Outsourcing Market is segmented by Outsourcing Type, Service, Application, Deployment Mode, Organization Size, Ownership, Outsourcing Approach, End-User and region. Based on Outsourcing Type, the market is segmented into Offshore, Onshore and Nearshore. Based on Service, the market is segmented into Voice Processing, Telemarketing Services, Image Editing Services, Virtual Staffing Services, 3d Visualization Services and Others. Based on Application, the market is segmented into Finance & Accounting, Human Resource, KPO, Procurement & Supply Chain, Customer Services, Sales & Marketing, Logistics, Others. Based on Deployment Mode, the market is segmented into Cloud and On Premise. Based on Organization Size, the market is segmented into Large Enterprises and SMEs. Based on Ownership, the market is segmented into Captive and Third Party. Based on Outsourcing Approach, the market is segmented into Contract Based, Bundled Services, Best-Shore and Fee For Service. Based on End-User, the market is segmented into IT and Telecommunication, Manufacturing, BFSI, Government & Defense, Transportation and Logistics, Retail & E-Commerce, Travel and Hospitality, Healthcare, Energy and Utilities, Education and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
In 2021, the Business Process Outsourcing market was dominated by the customer services segment, which had a revenue share of over 30%. The Business Process Outsourcing market is expected to continue to lead, with the fastest CAGR during the forecast period. The overwhelming Business Process Outsourcing market share can be attributed to the rising number of service centers around the world that require both online and offline technical support. BPO companies with a focus on customer service are experts at handling requests and questions from customers that come in through various channels, including emails, phone calls, chats, social media, and other channels. Most of them also offer self-service assistance, ensuring that clients can find solutions to their questions whenever they need them.
During the forecast period, it is expected that the finance and accounting segment will expand significantly. This can be attributed to the growing number of banking facilities and strict regulatory requirements in the banking industry, which have led to the requirement for outsourcing services that can significantly lower operation costs. In addition, it is expected that the human resource services segment will expand significantly throughout the forecast period due to the increased demand for resources in a variety of fields, including payment processing, recruitment and relocation, administration, and other employee benefits services.
The IT & telecommunications sector, which accounted for about 34.0% of the Business Process Outsourcing market as a whole, had the highest revenue share in 2021. One of the main factors driving the demand for BPO services across IT and telecommunication companies is the increase in the number of IT companies and the rapid industrialization of the world. IT and telecom BPO services meet the rising demand for connectivity, deal with security concerns, and develop fresh products for the newest gadgets and technological advancements. Call center outsourcing, billing operations, finance, and accounting are just a few of the business tasks that telecom companies outsource. By outsourcing, telecom companies can lower their capital expenditures, develop flexible customer acquisition and retention strategies, gain access to specialized resources, maximize their current investments, and control cost pressures.
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Over 36% of the Business Process Outsourcing market's revenue was generated in North America in 2021, and this region is expected to continue expanding throughout the forecast period. As more tech giants require BPO services, it is expected that the region would continue to dominate. Regional expansion is also expected to be supported by the customization of service offerings to better fit individual demands and the rising demand for cloud computing. Similar to the American Business Process Outsourcing industry, the European Business Process Outsourcing market is expected to grow strongly due to the availability of a competent labor force as well as the high quality of services and operational effectiveness.
Due to the rising need for skilled workers, falling labor costs, and major investments in digital technology by top vendors like HCL Technologies Limited, Infosys Ltd., Accenture, and Wipro, the Asia Pacific market is expected to grow at the fastest CAGR between 2022 and 2028. For instance, HCL Technologies Limited began operations in Vietnam in December 2021. The company's ability to hire highly qualified professionals and provide improved IT solutions across the nation was made possible by the business expansion. It additionally enabled the business to increase its Business Process Outsourcing market share in the Asia Pacific.
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Accenture, Amdocs, Infosys Limited, HCL Technologies Limited, CBRE Group Inc., Wipro Limited, and Capgemini are some of the major market participants that will control the world Business Process Outsourcing market in 2021. To survive in the fiercely competitive market, businesses employ inorganic growth tactics like mergers and acquisitions, collaborations, and global expansion. Amdocs and VEON Ltd., a connectivity and internet service provider, entered a seven-year collaboration in October 2021 to provide cutting-edge digital services to VEON's consumers in Uzbekistan and Kazakhstan.
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
According to the analysis, the customer services segment dominated the global Business Process Outsourcing (BPO) Market in 2021 and is expected to maintain its dominance throughout the forecast period. In 2021, North America dominated the global Business Process Outsourcing (BPO) Market owing to the region's highly aware and economically stable population.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 314.4 billion |
Market size value in 2032 | USD 513.4 billion |
Growth Rate | 5.6% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Business Process Outsourcing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Business Process Outsourcing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Business Process Outsourcing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Business Process Outsourcing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Business Process Outsourcing Market size was valued at USD 372.7 Trillion in 2023 and is poised to grow from USD 390.1 Trillion in 2024 to USD 562.02 Trillion by 2032, growing at a CAGR of 0.0467 during the forecast period (2025-2032).
Accenture, Amdocs, Infosys Limited, HCL Technologies Limited, CBRE Group Inc., Wipro Limited, and Capgemini are some of the major market participants that will control the world Business Process Outsourcing market in 2021. To survive in the fiercely competitive market, businesses employ inorganic growth tactics like mergers and acquisitions, collaborations, and global expansion. Amdocs and VEON Ltd., a connectivity and internet service provider, entered a seven-year collaboration in October 2021 to provide cutting-edge digital services to VEON's consumers in Uzbekistan and Kazakhstan. 'Accenture ', ' ', ' ', ' ', 'IBM Corporation ', 'Infosys Limited ', 'Tata Consultancy Services (TCS) ', 'Wipro Limited ', 'Capgemini ', 'Genpact ', 'ADP ', 'Conduent ', 'NTT DATA ', 'HCL Technologies ', 'Cognizant Technology Solutions ', 'WNS Global Services ', 'EXL Service ', 'Sutherland Global Services ', 'Xerox Corporation ', 'CGI Group ', 'Tech Mahindra ', 'Teleperformance ', 'Serco Group ', 'Alorica ', 'Sitel Group ', 'Arvato ', 'Transcom'
The main driver of business process outsourcing services is the growing use of BPO services in the IT and telecommunications industries. The Business Process Outsourcing market is being strengthened by the BPO services' adaptability to a variety of end-use sectors, such as banking, financial services, healthcare, and manufacturing. The use of BPO services is increasing due to decreased operating expenses and enhanced efficiency of support and customer service tasks. BPO services can provide consistent, pertinent, and round-the-clock support for crucial business activities because of their interconnection to organizations. Focusing on shared workloads will help businesses succeed going forward by increasing the demand for business process outsourcing. Businesses are putting more money into BPO, which is fueling Business Process Outsourcing market expansion.
The business process outsourcing market is most prevalent in the Americas. Compared to Europe, the Middle East, and Africa combined, North America had the largest Business Process Outsourcing market. Robotic process automation (RPA), one of the new technologies that emerged in recent years, has started to affect the BPO sector. Using bots and artificial intelligence on a user interface, robotic process automation (RPA) completes tasks more quickly and affordably. RPA, with its cost savings, speed, and efficiency benefits is slowly making its way into all industries and all types of business processes. Although many BPO service providers face obstacles in this endeavor, the leading companies in the sector are already making efforts to incorporate robotic process automation into their standard client service offerings.
Over 36% of the Business Process Outsourcing market's revenue was generated in North America in 2021, and this region is expected to continue expanding throughout the forecast period. As more tech giants require BPO services, it is expected that the region would continue to dominate. Regional expansion is also expected to be supported by the customization of service offerings to better fit individual demands and the rising demand for cloud computing. Similar to the American Business Process Outsourcing industry, the European Business Process Outsourcing market is expected to grow strongly due to the availability of a competent labor force as well as the high quality of services and operational effectiveness.
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