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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%. The 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. A primary driver behind the expansion of the market is the emphasis on lowering operational expenditures. Operational costs encompass expenses associated with producing goods and services, as well as ongoing maintenance and administrative tasks. BPO plays a crucial role in reducing these costs and boosting operational effectiveness. It entails obtaining assistance for various business processes like procurement, logistics, and customer support. Consequently, businesses are increasingly turning to outsourcing to streamline operations and enhance their core activities. BPO services are sought after by organizations aiming to grow their market presence, broaden their clientele, and enhance customer relations.
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The report analyzes the market's competitive landscape and offers information on several business process outsourcing servicesmarket vendors, including:
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.
Our report provides extensive information on the value chain analysis for the 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.
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38% of the market's growth will originate from North America during the forecast period. The US is the key market 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 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.
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The 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.
The market is flourishing across various sectors including healthcare, BFSI (Banking, Financial Services, and Insurance), and IT & telecommunications. With the advent of cloud computing and Artificial Intelligence (AI), BPO providers are delivering enhanced services while ensuring security and adhering to intellectual property rights. In sectors like BFSI, Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance are crucial, driving the need for BPO support. Human resource and recruitment outsourcing aids in efficient talent acquisition, while data warehousing and analytics solutions optimize operations. BPO serves both large enterprises and small- and medium-sized enterprises, offering solutions tailored to their needs. Verticals such as retail & consumer goods, transportation & logistics, and energy & power benefit from BPO's expertise, supported by AI technologies and power transmission solutions.
The market is experiencing significant growth, driven by various sectors including healthcare, BFSI (Banking, Financial Services, and Insurance), IT & telecommunications, and energy & power. Organizations are increasingly focusing on reducing operational costs, which is a key driver for the market. BPO services aid in minimizing operating costs and enhancing business efficiency across various processes such as know your customer (KYC), anti-money laundering (AML), and telemarketing. By outsourcing functions like human resource and recruitment, data warehousing and analytics, and customer care, enterprises can concentrate on core activities, thus improving market share and customer relationships. BPO providers leverage cloud computing, AI technologies, and robust security measures to deliver efficient services while ensuring compliance with intellectual property rights and regulatory requirements. As organizations seek to optimize resources and achieve operational excellence, the demand for BPO services is expected to continue rising across verticals.
The rising emphasis on process automation is another factor supporting the 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 market.
Data breaches will be a major challenge for the 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 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.
The market is witnessing significant growth across various sectors including Healthcare, BFSI (Banking, Financial Services, and Insurance), and IT & Telecommunications. With a focus on cost-effectiveness and efficiency, enterprises are increasingly leveraging BPO services to streamline operations and enhance productivity. Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations are driving demand for BPO solutions, particularly in the financial services sector. The IT and telecommunications industry benefit from BPO offerings like software development and IT support, while healthcare organizations outsource functions such as finance and accounting and customer support. Advanced technologies like Robotic Process Automation (RPA) and AI are further enhancing BPO capabilities, ensuring seamless operations and improved business continuity plans. With a focus on vertical-specific solutions and skilled workforce, the BPO market continues to expand across various industries.
Moreover, the market is thriving, especially in sectors like IT and telecommunication, retail & consumer goods, transportation & logistics, and energy & power. Small- and medium-sized enterprises are increasingly outsourcing functions like finance and accounting, marketing & sales, customer support, training & development, and human resource management to streamline operations and focus on core competencies. With the advancement of AI technologies and the Internet of Things (IoT), BPO providers are enhancing services like social media marketing, telemarketing, and data warehousing and analytics solutions. This trend is supported by virtual storage, robust data centers, and mobility solutions. BPO also aids in business continuity through Business Continuity Plans (BCP), managing attrition rates, and providing talent and HR services.
Additionally, the market continues to evolve, particularly in the IT and telecommunication sector, fueled by the need for streamlined operations and cost efficiency. Companies are increasingly outsourcing functions such as finance and accounting, marketing & sales, customer support, and human resource management to specialized providers. This trend is supported by advancements in technology, including data warehousing and analytics solutions, CRM, and ERP systems, optimizing business processes. BPO providers offer comprehensive services across various verticals like power transmission, sales & marketing, and data recording, catering to diverse industry needs. Additionally, BPO solutions encompass business process services (BPS) and business process as a service (BPaaS), offering flexibility and scalability. As companies navigate challenges like attrition rates, BPO remains a strategic solution for enhancing efficiency and maintaining competitiveness.
Investments in office space and infrastructure are pivotal for businesses aiming to expand their operations. Hardware investments ensure that employees have the necessary tools to perform their tasks efficiently. However, with the advancement of technology, there's a growing trend towards outsourcing various functions such as finance and accounting, marketing and sales, customer support, training and development, and data warehousing and analytics solutions.
This outsourcing trend allows businesses to focus on their core competencies while leveraging the expertise of specialized service providers. It's particularly prevalent in verticals such as IT & telecommunication, where technological advancements occur rapidly. However, managing attrition rates within outsourced functions remains a challenge, requiring strategic approaches to maintain continuity and quality of service.
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 |
USD 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 forecasting, 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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Business Segment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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