Enjoy complimentary customisation on priority with our Enterprise License!
The business process outsourcing market share is expected to increase by USD 40.16 billion from 2020 to 2027, and the market's growth momentum will accelerate at a CAGR of 4%.
This business process outsourcing market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers business process outsourcing market segmentation by end-user (IT and telecommunication, BFSI, retail, healthcare, and others) and geography (North America, Europe, APAC, MEA, and South America). The business process outsourcing market report also offers information on several market vendors, including Accenture Plc, Automatic Data Processing Inc., Capgemini SE, Infosys Ltd., International Business Machines Corp., NEC Corp., NTT DATA Corp., Tata Consultancy Services Ltd., Wipro Ltd., and ZTE Corp. among others.
Download the Free Report Sample to Unlock the Business Process Outsourcing Market Size for the Forecast Period and Other Important Statistics
Based on our research output, there has been a neutral impact on the market growth during and post-COVID-19 era. The focus on reducing operational costs is notably driving the business process outsourcing market growth, although factors such as data breaches may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the business process outsourcing industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Business Process Outsourcing (BPO) Market Driver
One of the key factors driving growth in the business process outsourcing market is the focus on reducing operational costs. Operational costs refer to the cost involved in manufacturing goods and services, maintenance, and administration on a regular basis. BPO helps minimize operating costs and enhances business efficiency. BPO involves service aid for different business processes such as procurement, logistics, and customer care. Therefore, organizations have started outsourcing their business processes and operations to focus on and improve their core businesses. Organizations need BPO services to increase market share, expand their customer base, and improve customer relationships. It is estimated that logistics BPO outsourcing companies help reduce operational costs by up to 70%. Logistics companies use third-party BPO providers to fuel revenue growth and attain operational efficiency at a reduced cost. This will have a positive impact on business process outsourcing services.
Key Business Process Outsourcing (BPO) Market Trend
The rising emphasis on process automation is another factor supporting the business process outsourcing market share growth. There has been a huge emphasis on emerging technologies in the BPO market. Emerging technologies such as cloud computing, social media, artificial intelligence (AI), and process automation are extensively used by BPOs to reduce costs and accelerate growth.
AI software can perform the same process functions at a faster pace and maximize efficiency. Data storage on the cloud eliminates the need for unnecessary storage space, which reduces energy consumption. It is estimated that 83% of enterprise workloads will be stored on the cloud by 2020. With the help of cloud products and SaaS, companies can use the latest technologies for efficiency and cost savings, hence driving the business process outsourcing services market.
Key Business Process Outsourcing (BPO) Market Challenge
Data breaches will be a major challenge for the business process outsourcing market during the forecast period. For a firm, data theft refers to the illegal transfer of data, which can be confidential, financial, or personal. Such data is normally stored on electronic devices such as servers and computers and includes proprietary process-oriented information, technologies, software codes, and passwords. Data security and data privacy have always been key concerns for BPO companies. With increasing technological advances and the rising use of Internet services across the world, the safety of customer data is becoming crucial. Data breaches will be a major challenge for the global BPO market. A data breach can tarnish the reputation of individuals and organizations.
This business process outsourcing services market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global business process outsourcing market as a part of the global IT consulting and other services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the business process outsourcing services market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several business process outsourcing servicesmarket vendors, including:
This statistical study of the business process outsourcing market encompasses successful business strategies deployed by the key vendors. The business process outsourcing market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
Accenture Plc - It offers intelligent finance operations, marketing solutions, and other services. The services are availed by SynOps. It helps create a data-driven operating model that connects intelligent technologies, talent, and data and analytics to provide real-time, actionable insights.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The business process outsourcing market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the business process outsourcing market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chains is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the IT consulting and other services market. includes the following core components:
The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.
For more insights on the market share of various regions Request for a FREE sample now!
38% of the market's growth will originate from North America during the forecast period. The US is the key market for business process outsourcing in North America. Market growth in this region will be slower than the growth of the market in the South American, MEA, and APAC regions.
The rise in the adoption of advanced technologies such as cloud computing solutions, social media, AI, and RPA will facilitate the business process outsourcing market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The growing number of COVID-19 cases has led to economic recession and disruptions in supply chains across all end-user industries, which, in turn, will impede the growth of the market in focus in the region during the forecast period. However, the increasing prevalence of deadly infectious diseases in the region has heavily impacted the BPO market in North America. Currently, the novel coronavirus disease (COVID-19) outbreak has spread widely across North America, especially in the US. Moreover, the rising number of deaths from COVID-19 led to lockdowns in several countries, such as the US, Canada, and Mexico. Thus, the business process outsourcing services market growth was hampered in 2020 but is expected to recover during the forecast period.
To gain further insights on the market contribution of various segments Request for a FREE sample
The business process outsourcing market share growth in the IT and telecommunication segment will be significant during the forecast period. The growth of this segment can be attributed to technological advances, fast growth in data traffic, and growing demand for digital content and communication by consumers. The telecom services industry is expected to witness steady growth with the advent of the 5G spectrum.
This report provides an accurate prediction of the contribution of all the segments to the growth of the business process outsourcing market size and actionable market insights on the post-COVID-19 impact on each segment.
Business Process Outsourcing Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2020 |
Forecast period |
2021-2025 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4% |
Market growth 2021-2025 |
$ 40.16 billion |
Market structure |
Fragmented |
YoY growth (%) |
3.53 |
Regional analysis |
North America, Europe, APAC, MEA, and South America |
Performing market contribution |
North America at 38% |
Key consumer countries |
US, UK, Germany, China, and Japan |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Accenture Plc, Automatic Data Processing Inc., Capgemini SE, Infosys Ltd., International Business Machines Corp., NEC Corp., NTT DATA Corp., Tata Consultancy Services Ltd., Wipro Ltd., and ZTE Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.