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Business Process Outsourcing Market by End-user and Geography - Forecast and Analysis 2021-2025

  • Published: Apr 2021
  • Pages: 120
  • SKU: IRTNTR44588
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The business process outsourcing market share is expected to increase by USD 40.16 billion from 2020 to 2025, 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.

What will the Business Process Outsourcing Market Size be During the Forecast Period?

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Business Process Outsourcing Market: Key Drivers, Trends, and Challenges

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 the 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 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 the global BPO market.

Key Business Process Outsourcing 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 BPO market.

Key Business Process Outsourcing Market Challenge

The 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 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.

Parent Market Analysis

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 market during the forecast period.

Who are the Major Business Process Outsourcing Market Vendors?

The report analyzes the market’s competitive landscape and 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.
  • ZTE Corp.

 

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.

Product Insights and News

  • 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 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.

Business Process Outsourcing Market Value Chain Analysis

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:

  • Inputs
  • Operations
  • Marketing and sales
  • Service
  • Support activities
  • Innovation

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for Business Process Outsourcing Market?

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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 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 lockdown in several countries, such as the US, Canada, and Mexico. Thus, the BPO market growth was hampered in 2020 but is expected to recover during the forecast period.

What are the Revenue-generating End-user Segments in the Business Process Outsourcing Market?

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The business process outsourcing market share growth by 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 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, Market condition analysis for the forecast period

Customization purview

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What are the Key Data Covered in this Business Process Outsourcing Market Report?

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will drive business process outsourcing market growth during the next five years
  • Precise estimation of the business process outsourcing market size and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the business process outsourcing industry across North America, Europe, APAC, MEA, and South America
  • A thorough analysis of the market’s competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of business process outsourcing market vendors

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Executive Summary

Market Landscape

  • Market ecosystem
  • Value chain analysis

Market Sizing

  • Market definition
  • Market segment analysis
  • Market size 2020
  • Market outlook: Forecast for 2020 - 2025

Five Forces Analysis

  • Five forces summary
  • Bargaining power of buyers
  • Bargaining power of suppliers
  • Threat of new entrants
  • Threat of substitutes
  • Threat of rivalry
  • Market condition

Market Segmentation by End-user

  • Market segments
  • Comparison by End user
  • IT and telecommunication - Market size and forecast 2020-2025
  • BFSI - Market size and forecast 2020-2025
  • Retail - Market size and forecast 2020-2025
  • Healthcare - Market size and forecast 2020-2025
  • Others - Market size and forecast 2020-2025
  • Market opportunity by End user

Customer landscape

  • Customer landscape

Geographic Landscape

  • Geographic segmentation
  • Geographic comparison
  • North America - Market size and forecast 2020-2025
  • Europe - Market size and forecast 2020-2025
  • APAC - Market size and forecast 2020-2025
  • MEA - Market size and forecast 2020-2025
  • South America - Market size and forecast 2020-2025
  • Key leading countries
  • Market opportunity by geography
  • Market drivers
  • Market challenges
  • Market trends

Vendor Landscape

  • Overview
  • Landscape disruption

Vendor Analysis

  • Vendors covered
  • Market positioning of vendors
  • 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.
  • ZTE Corp.

Appendix

  • Scope of the report
  • Currency conversion rates for US$
  • Research methodology
  • List of abbreviations

Research Framework

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

TechnavioINFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases
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TechnavioDATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts
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TechnavioREPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape
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The business process outsourcing market market growth will increase by $$ 40.16 bn during 2022-2025.
The business process outsourcing market market is expected to grow at a CAGR of 4% during 2022-2025.
Technavio has segmented the business process outsourcing market market by end-user (IT and telecommunication, BFSI, Retail, Healthcare, and Others) ,geography (North America, Europe, APAC, MEA, and South America) , and geographic (North America, Europe, APAC, MEA, and South America).
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., ZTE Corp. are a few of the key vendors in the business process outsourcing market market.
North America will register the highest growth rate of 38% among the other regions. Therefore, the business process outsourcing market market in North America is expected to garner significant business opportunities for the vendors during the forecast period.
The key factors driving the business process outsourcing market market growth are:
  • focus on reducing operational costs
  • rising emphasis on process automation
The business process outsourcing market market vendors should focus on grabbing business opportunities from the it and telecommunication segment as it accounted for the largest market share in the base year.
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