Global Business Process Outsourcing Market Size, Share & Trends Analysis Report By Deployment (Traditional, and Business Process-as-a-Service), By Type (Offshore, Nearshore, and Onshore), By End-use, By Service Type, By Regional Outlook and Forecast, 2023

Global Business Process Outsourcing Market Size, Share & Trends Analysis Report By Deployment (Traditional, and Business Process-as-a-Service), By Type (Offshore, Nearshore, and Onshore), By End-use, By Service Type, By Regional Outlook and Forecast, 2023 - 2030

The Global Business Process Outsourcing Market size is expected to reach $467.1 billion by 2030, rising at a market growth of 9.0% CAGR during the forecast period.

BPO providers play a crucial role in enhancing the customer experience for BFSI organizations by delivering responsive, efficient, and personalized services. Thus, the BFSI segment acquired $38,685.9 million revenue in 2022. Outsourcing customer support, account servicing, and inquiries to specialized BPO firms ensures round-the-clock availability, and consistent delivery of high-quality service, leading to increased customer satisfaction and loyalty.

The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In September 2023, Amdocs Limited came into partnership with Amdocs Limited. Through this partnership, Amdocs Limited facilitates the communications and media industry's transition to the cloud. Additionally, In May 2023, Wipro Limited came into partnership with ServiceNow. Through this partnership, Wipro Limited introduces fresh products to the market, enabling clients to spearhead business transformation, surmount challenges, and deliver increased value.

Based on the Analysis presented in the KBV Cardinal matrix; Accenture PLC is the forerunners in the Business Process Outsourcing Market. In November 2023, Accenture PLC came into partnership with Vodafone Group Plc, to provide its top-notch technology and transformation services, including digital solutions and platforms, along with extensive expertise in artificial intelligence to Vodafone Group Plc to consistently develop fresh training programs and career trajectories for its workforce. Companies such as Amdocs Limited, Cognizant Technology Solutions Corporation, and HCL Technologies Ltd. are some of the key innovators in Business Process Outsourcing Market.

Market Growth Factors

One significant advantage of outsourcing is the capacity to delegate specific risks to the service provider, who frequently possesses superior capabilities to manage them. Thus, the demand for outsourcing services is likely to continue growing as businesses seek to manage risks more effectively in an increasingly complex and uncertain business environment.

Additionally, customers have higher expectations regarding service quality, responsiveness, and personalized experiences in a competitive business landscape. Businesses must deliver seamless, convenient, and memorable experiences across multiple touchpoints to meet and exceed customer expectations. Hence, the rising demand for customer experience enhancement drives the market’s growth.

Market Restraining Factors

Business process outsourcing providers often handle sensitive and confidential data on behalf of their clients, including personal information, financial records, intellectual property, and proprietary business data. The outsourcing company and its clients may face serious monetary, legal, and reputational repercussions from any security lapse or unauthorized utilization of sensitive data. Thus, increasing data security and privacy concerns hamper the market’s growth.

By Deployment Analysis

Based on deployment, the market is categorized into traditional and business process-as-a-service. The business process-as-a-service segment witnessed 38% revenue share in the market in 2022. The demand for business process-as-a-service (BPaaS) is driven by its ability to provide cost-effective, scalable, and technologically advanced solutions. By outsourcing to BPaaS providers, businesses can mitigate risks such as technology obsolescence, regulatory changes, and market fluctuations.

By Type Analysis

On the basis of type, the market is segmented into onshore, nearshore, and offshore. The offshore segment recorded 50% revenue share in the market in 2022. Offshore locations such as India, the Philippines, and Eastern Europe have well-educated, English-speaking talent pools with expertise in various industries and functions, making them attractive for outsourcing. Therefore, more businesses are opting for these services, leading to the growth of the segment.

By End-use Analysis

By end-use, the market is divided into BFSI, healthcare, manufacturing, IT & telecommunication, retail, government & defense, and others. In 2022, the retail segment attained a promising 14.3% revenue in the market. BPO providers with expertise in digital technologies, omnichannel integration, and e-commerce platforms help retailers accelerate their digital journey by offering solutions that enhance online shopping experiences, optimize inventory management, and drive sales growth across multiple channels.

By Service Type Analysis

Based on service type, the market is divided into finance & accounting human resource, KPO, procurement & supply chain, customer services, sales & marketing, logistics, training & development outsourcing, and others. In 2022, the customer services segment garnered 27.9% revenue share in the market. Outsourcing customer services to BPO providers is often more cost-effective than maintaining in-house customer support teams.

By Regional Analysis

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 34.5% revenue share in the market in 2022. North American companies can leverage the domain knowledge and experience of BPO firms to improve efficiency, streamline processes, and drive innovation in various areas such as customer service, IT support, finance, and human resources.

Business Process Outsourcing Market Report Coverage:

Report Attribute Details

Market size value in 2022 USD 237.2 Billion

Market size forecast in 2030 USD 467.1 Billion

Base Year 2022

Historical period 2019 to 2021

Forecast Period 2023 to 2030

Revenue Growth Rate CAGR of 9.0% from 2023 to 2030

Number of Pages 355

Tables 522

Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives

Segments Covered Deployment, Type, Service Type, End-use, Region

Country Scope

North America (US, Canada, Mexico, and Rest of North America)

• Europe (Germany, UK, France, Russia, Spain, Italy, and Rest of Europe)
• Asia Pacific (China, Japan, India, South Korea, Singapore, Malaysia, and Rest of Asia Pacific)
• LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA)

Companies Included Accenture PLC, Amdocs Limited, Capgemini SE, Cognizant Technology Solutions Corporation, HCL Technologies Ltd. (HCL Enterprises), Infosys Limited, IBM Corporation, Wipro Limited, Teleperformance SE, NCR Corporation

Recent Strategies Deployed in the Market

• Dec-2023: Capgemini SE came into partnership with InPost Group, a Poland-based public logistics limited company. Through this partnership, Capgemini SE would overhaul its operational procedures across various European markets and enhance business processes.
• Nov-2023: Accenture PLC came into partnership with Vodafone Group Plc, a British multinational telecommunications company. Through this partnership, Accenture PLC would provide its top-notch technology and transformation services, including digital solutions and platforms, along with extensive expertise in artificial intelligence to Vodafone Group Plc to consistently develop fresh training programs and career trajectories for its workforce.
• Nov-2023: Amdocs Limited came into partnership with VodafoneZiggo, a mobile digital communication company. Through this partnership, Amdocs Limited would manage the business systems operations for VodafoneZiggo, enhancing the experience for both fixed-line and mobile customers. This would result in a more cohesive user journey across all business lines.
• Sep-2023: Amdocs Limited came into partnership with Amdocs Limited, an American multinational computer technology company. Through this partnership, Amdocs Limited facilitates the communications and media industry's transition to the cloud. Additionally, Amdocs would empower service providers to migrate their classic applications to OCI (Oracle Cloud Infrastructure).
• Jun-2023: Teleperformance SE came into partnership with Microsoft Corporation, an American multinational technology corporation. Through this partnership, Teleperformance SE would Introduce TP GenAI, a Generative AI platform designed to enhance efficiency and foster a human-centric approach in enterprises.

List of Key Companies Profiled

• Accenture PLC
• Amdocs Limited
• Capgemini SE
• Cognizant Technology Solutions Corporation
• HCL Technologies Ltd. (HCL Enterprises)
• Infosys Limited
• IBM Corporation
• Wipro Limited
• Teleperformance SE
• NCR Corporation

Global Business Process Outsourcing Market Report Segmentation

By Deployment

• Traditional
• Business Process-as-a-Service

By Type

• Offshore
• Nearshore
• Onshore

By End-use

• IT & Telecommunication
• Healthcare
• Manufacturing
• BFSI
• Retail & Others
• Government & Defense

By Service Type

• Customer Services
• Human Resource
• KPO
• Sales & Marketing
• Procurement & Supply Chain
• Training and Development Outsourcing
• Finance & Accounting
• Logistics
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA