IT Business Process Outsourcing (BPO) Market by Type and Geography - Forecast and Analysis 2022-2026

The IT business process outsourcing (BPO) market share is expected to increase by USD 281.25 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 8.12%.

This IT business process outsourcing (BPO) market research report provides valuable insights into the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the IT business process outsourcing (BPO) market segmentation by type (IT-related BPO, contact centers BPO, and others) and geography (North America, Europe, APAC, South America, and the Middle East and Africa). The information technology BPO market report also offers information on several market vendors, including Accenture Plc, Acora Ltd, Atos SE, Capgemini Service SAS, Cognizant Technology Solutions Corp., Concentrix Corp., Dofort Technologies Pvt. Ltd., HCL Technologies Ltd., Helpware Inc., Infosys Ltd., International Business Machines Corp., ITC Ltd., Outsource Accelerator Ventures OPC, Solutions Connected LLC, Tag eServices Pvt. Ltd., Tata Consultancy Services Ltd., Unisys Corp., Unity Communications LLC, Wipro Ltd., and CGI Inc. among others.

What will the IT Business Process Outsourcing (BPO) Market Size be During the Forecast Period?

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IT Business Process Outsourcing (BPO) Market: Key Drivers, Trends, and Challenges

The need to focus on core competencies and improve efficiency is notably driving the information technology BPO market's growth, although factors such as data privacy and security risks involved in cloud-based services may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic's impact on the IT business process outsourcing (BPO) industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key IT Business Process Outsourcing Market Driver

One of the key factors driving the information technology BPO market growth is the need for companies to focus on core competencies and improve efficiency. Companies are adopting IT BPO services to improve their core business operations and outsource IT-related requirements such as application and infrastructure management to IT BPO service providers. This is enabling companies to achieve their corporate vision and mission objectives by putting their resources and people skills into their core business activities. Several companies have saved a substantial amount of money in the past by implementing IT BPO services, as vendors help them plan their business strategies related to IT, such as software development, IT procurement, and data center outsourcing, at a minimal cost. Cost savings can be achieved by allocating the resources saved from these operations to other functions such as marketing, finance, and CRM. Such factors will drive the demand for IT BPO services leading to the growth of the global information technology BPO market.

Key IT Business Process Outsourcing Market Trend

The rise of emerging economies as call center destinations is an information technology BPO market trend that is expected to have a positive impact on market growth in the coming years. Outsourcing enables organizations to align their processes better and improve their operational efficiencies. It helps them enhance customer experience and reduce operational costs. Call center organizations have established their operations in India and the Philippines, among other countries, owing to the low operating costs. These organizations, however, are facing challenges such as poor quality, inflation in wage rates, high attrition rates, and remote management complexities while operating in these countries. Therefore, they are focusing on expanding their businesses in other countries also to increase the diversity of skills, gain competitive advantages, and expand their presence. A key reason for investments from call center organizations in emerging markets is local government initiatives. The establishment of call centers in developing countries will help organizations in various industries, including finance and healthcare, to outsource their customer services operations to these call center organizations, thus boosting the global information technology BPO market growth.

Key IT Business Process Outsourcing Market Challenge

Data privacy and security risks in cloud-based services will be a major challenge for the information technology BPO market's growth during the forecast period. Data privacy and security risks are critical barriers to the adoption of cloud-based IT BPO services in organizations, especially in the public cloud. Cloud security management is a challenging task for vendors, especially with regard to protecting online data. Online digital files need to be secured from unauthorized access in the cloud-based IT infrastructure. Cyber attackers can easily gain access to cloud-based data storage systems as cloud-based IT infrastructure is based on open architecture and shared resources. The ease of procuring and accessing cloud services can also give hackers and cybercriminals the ability to scan, identify, and exploit loopholes and vulnerabilities in a system. Hackers are targeting outsourced applications by gaining access to corporate networks, resulting in the leakage of customer information. Such cyber-attacks raise doubts about the security aspects of IT BPO services and can hamper the growth prospects of these services. Hence, data security concerns are becoming a great challenge for vendors that outsource IT activities and are expected to hamper the growth of the global information technology BPO market.

This IT business process outsourcing (BPO) 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 2022-2026.

Parent Market Analysis

Technavio categorizes the global IT business process outsourcing (BPO) market as a part of the global information technology (IT) spending 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 IT business process outsourcing (BPO) market during the forecast period.

Who are the Major IT Business Process Outsourcing Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

• Accenture Plc
• Acora Ltd
• Atos SE
• Capgemini Service SAS
• Cognizant Technology Solutions Corp.
• Concentrix Corp.
• Dofort Technologies Pvt. Ltd.
• HCL Technologies Ltd.
• Helpware Inc.
• Infosys Ltd.
• International Business Machines Corp.
• ITC Ltd.
• Outsource Accelerator Ventures OPC
• Solutions Connected LLC
• Tag eServices Pvt. Ltd.
• Tata Consultancy Services Ltd.
• Unisys Corp.
• Unity Communications LLC
• Wipro Ltd.
• CGI Inc.

This statistical study of the IT business process outsourcing market encompasses successful business strategies deployed by the key vendors. The IT business process outsourcing (BPO) market is fragmented, and the vendors are deploying organic and inorganic growth strategies to compete in the market.

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 IT business process outsourcing (BPO) 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.

IT Business Process Outsourcing (BPO) Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the information technology BPO market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain 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.

Which are the Key Regions for IT Business Process Outsourcing Market?

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37% of the market’s growth will stem from North America during the forecast period. The US is the key market for IT business process outsourcing (BPO) in North America. Market growth in this region will be faster than the growth of the market in MEA.

The strong presence and penetration of top vendors will facilitate the IT 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-19 Impact and Recovery Analysis

In 2020, the COVID-19 pandemic positively impacted the growth of the IT business process outsourcing market in North America. As a result of the pandemic, several governments, including the US, Canada, and Mexico, imposed lockdowns in 2020, forcing people to stay at home to contain the spread of the disease. Therefore, the pandemic increased the demand for the digitalization of processes and created new opportunities for cloud services in end-user industries, such as BFSI, healthcare, and retail. 

What are the Revenue-generating Type Segments in the IT Business Process Outsourcing Market?

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The IT business process outsourcing (BPO) market share growth in the IT-related BPO segment will be significant during the forecast period. The major driver aiding the growth of this segment is the readily available access to local talent and advanced technologies that enable a client to maintain a lean workforce. Also, through the adoption of IT-related BPO, client firms can develop an economical cost structure because they do not have to invest in extra office space, equipment, specialist training, or in-house staff training.

This report provides an accurate prediction of the contribution of all the segments to the growth of the information technology BPO market size and actionable market insights on the post-COVID-19 impact on each segment.

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

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive IT business process outsourcing (BPO) market growth during the next five years
• Precise estimation of the IT business process outsourcing (BPO) market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the IT business process outsourcing (BPO) industry across North America, Europe, APAC, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of IT business process outsourcing (BPO) market vendors

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