BPO Market Size, Trends & Forecast | 2031 (2024)

Global BPO Market size was valued at USD 53.61 billion in 2019 and is poised to grow from USD 57.67 billion in 2023 to USD 110.74 billion by 2031, growing at a CAGR of 9.1% in the forecast period (2024-2031).

BPO is a contracted business support activity with an external service provider. Services offered by BPOs include human resources, payroll, and call centers. Companies are increasingly turning to business outsourcing, as they realize that the partnership is a long-term, cost-effective strategy. Many countries view BPO as an opportunity to create jobs. The market is predicted to benefit from the increasing focus of organizations on improving business agility, in order to survive the changing dynamics of business, as well as ways of increasing efficiency while decreasing operating costs and emphasizing core competencies.

Several end-use industries, including banking, financial services, healthcare, and manufacturing employ BPO services in some capacity, which in return strengthens market growth. Outsourcing business operations offers benefits like reducing operational costs and increasing efficiency in support functions like customer service. A BPO service not only offers increased interconnection for businesses, but it also provides reliable, relevant, and round-the-clock support for essential business processes. Changing business strategies from monopolistic to shared workload cultures is fuelling growth in demand for business process outsourcing.

US BPO Market is poised to grow at a sustainable CAGR for the next forcast year.

Market Snapshot - 2024-2031

BPO market is segmented based on service type, end user, location, and region. based on service type BPO market is categorized into: finance & accounting, human resource, KPO, procurement & supply chain, customer services, others. based on end user BPO market is categorized into: BFSI, healthcare, manufacturing, it & telecommunication, retail, others.

Based on location BPO market is categorized into: onsite, offsite, offshore. Based on region BPO Market is categorized into: North America, Europe, Asia-Pacific, South America, and MEA.

BPO Market Analysis by Service

Finance and accounting BPO (or FAO) is expected to dominate the market over the forecast period which involve entrusting third-party professionals with the oversight and administration of finance and accounting business processes. Clients choose outsourcing services for F&A operations largely to save money, simplify operations for the F&A department, and meet regulatory requirements. Due to the increased standardization of these operations, complicated processes such as external reporting, budgeting, accounting, planning, and forecasting continue to be outsourced in the finance & accounting domain.

BPO Market Analysis by End-User

With a revenue share of more than 45% in 2022, the IT & telecommunications segment dominated the market. During the forecast period, the segment is expected to grow at a significant rate. The rise in the number of IT companies and the rising digitalization is both contributing to the segment's growth. Several telecommunications procedures are being outsourced by telecom firms around the world to lower their overall capital expenditure. Various business tasks, including call center outsourcing, billing operations, finance and accounting, are outsourced by telecom businesses.

Outsourcing allows telecom firms to build a flexible strategy for attracting and retaining more consumers, optimizing current investments, leveraging specialized skills and controlling cost constraints, in addition to lowering capital expenses.

BPO Market Driver

Long-term Benefits in the Outsourcing Industry to Create Market Opportunities

• For many company leaders, digital technologies are creating profitable prospects. Long-standing operations and business process outsourcing (BPO) paradigms are being revitalized by more intelligent workflows that use cloud, AI, automation, and the Internet of Things (IoT). Businesses are required to constantly adapt to fully organized and intelligent processes that include employees, consumers, business partners, and suppliers alike to grow and remain relevant.
• Demand for lower operating costs associated with non-core operations and a greater concentration on core skills across a variety of end-use verticals, are driving the market expansion. Furthermore, the market is likely to be driven by new-age businesses' with a greater preference for managing key business tasks in-house and outsourcing support functions to third-party vendors for better growth chances.

BPO Market Restraint

Leaks in Data Security and Confidentiality to Create Market Challenges

• The market is expected to grow rapidly over the next several years, but organizations are concerned about their excessive dependence on external outsourcing service providers, which could represent a security risk to user data confidentiality and integrity.
• Protecting and preserving the security and integrity of customer data is a critical concern for all companies. In addition, the lack of strong frameworks to ensure service quality and increased budgetary pressures are the two major problems limiting the market growth.

The global markets are characterized by a fragmented landscape and fierce competition among industry participants. The players have focused their efforts on bolstering their market position through mergers and acquisitions, alliances, and global development. These techniques assist businesses in expanding their geographic reach and improving their service offerings in both domestic and foreign markets. Accenture, for example, teamed with Inversis in December 2020 to develop outsourced solutions for financial institutions across Europe. The collaboration also allows the former to update the latter's technology platform.

BPO Market Top Players Company Profiles

• Accenture
• IBM Corporation
• Wipro Limited
• Genpact Limited
• Tata Consultancy Services Limited
• Capgemini SE
• Cognizant Technology Solutions Corporation
• Infosys Limited
• EXL Service Holdings, Inc.
• HCL Technologies Limited
• NTT DATA Corporation
• DXC Technology Company
• Concentrix Corporation
• Sykes Enterprises, Incorporated
• Teleperformance SE
• WNS (Holdings) Limited
• Sitel Group
• Alorica Inc.
• Serco Group plc
• Sutherland Global Services Inc.

BPO Market Recent Developments

• In May 2022, Capgemini opens new centres specialized in Cybersecurity and Cloud services in Malaga, Spain
• In April 2022, TTEC Completes Acquisition of Public Sector and Smart City Assets
• In March 2022, CBRE launches specialized healthcare real estate services in India

• Artificial Intelligence and Robotics to Handle Business Processes: The use of artificial intelligence and robotic process automation has been the core process of BPO companies since the blended approach is the most effective solution. With the use of AI and RPA along with human intervention, these companies can produce great results. Advances in areas such as robotic process automation, artificial intelligence, machine learning, social media browsing, and big data analytics bode well for the market's future.
• Pandemic Driven Changes: The post-pandemic service industry has undergone huge changes owing to alterations in consumer demand for customer service and other facilities. Mainly, the airline and banking processes have adopted to automation and robotic processes to comply with customer needs.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research has identified that the market is expected to benefit from organizations' increased focus on improving business agility to survive the constantly changing business dynamics, as well as ways to improve efficiency while lowering operating costs and emphasizing core competencies. Furthermore, to meet the growing industry demands, organizations are increasingly focusing on lowering the cost of doing business to gain access to global resources. As a result, many organizations around the world are taking advantage of the benefits of business process outsourcing (BPO) services and focusing on core competencies, thereby creating opportunities for market growth.

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