The Global Business Process Outsourcing Market Size accounted for USD 241.7 Billion in 2021 and is estimated to achieve a market size of USD 512.4 Billion by 2030 growing at a CAGR of 8.9% from 2022 to 2030. An increasingly competitive environment from new outsourcing sites, along with the emphasis on firms running more cost-effectively, will fuel the business process outsourcing market growth. Furthermore, the business process outsourcing market value is being propelled by aspects such as businesses' increased attention on enhancing efficiency and business agility, lowering operational costs, and stressing core capabilities in order to withstand the continuously shifting business dynamics.

Business Process Outsourcing Market Report Key Highlights

• Global business process outsourcing market revenue is estimated to expand by USD 512.4 billion by 2030, with a 8.9% CAGR from 2022 to 2030.
• North America business process outsourcing market share accounted for over 35.9% shares in 2021
• Asia-Pacific business process outsourcing market growth will observe fastest CAGR from 2022 to 2030
• Based on service, customer services segment accounted for over 30% of the overall market share in 2021
• Among end-user, IT and telecom sector engaged more than 36% of the total market share
• Rising global penetration of new competitors, drives the business process outsourcing market size

Business process outsourcing (BPO) is a way to offer a third-party service provider control over a range of business functions in return for a fixed payment. The fast expansion of the BPO industry's scope and size is linked to multinational firms' greater need to lower costs and deal with issues such as skilled labor scarcity. The multiple benefits offered by BPO, including cost reductions, increased customer satisfaction, better concentration on core markets, competitive capacity, and rapid time to market, have motivated operations to embrace the outsourcing model.

Global Business Process Outsourcing Market Trends

Market Drivers

• Increased emphasis on improving business agility by businesses
• The growing use of cloud computing
• Increased demand for standardized technology platforms
• Focusing attention on the IT and telecommunications industries

Market Restraints

• Increased concerns about confidentiality and intellectual property
• Risks related to cybercrime

Market Opportunities

• Continually changing business dynamics
• Rising global penetration of new competitors

Business Process Outsourcing Market Report Coverage

BPO is rapidly gaining momentum across an array of verticals such as banking, financial services, and insurance (BFSI), healthcare, manufacturing, IT & telecommunications, retail, and others, which is driving the BPO market value. Demand to decrease operational costs is a main factor expected to boost the BPO market size. Any further expenditure spent on a device or business that is not among the major capabilities of a company is called operational costs. A growing numeral of businesses has been outsourcing these operations, allowing them to emphasize core capabilities and improve their business. This results is shown in cost competence and real-time as well as resource management.

Business activities of any association are characterized into basic, critical, core, and non-core activities. Core exercises are an organization's essential capabilities that give it a key favorable position, while basic tasks require a specific range of abilities. Non-core activities are supporting tasks that to a great extent include relationships with the executives among shoppers and items. Grouping these exercises is essential so as to distribute assets fittingly to guarantee opportune conveyance administrations. These days, organizations have started putting more noteworthy accentuation on core activities with a view to keeping up their market nearness and growing their client base. This has brought about higher redistributing of non-core activities.

Business Process Outsourcing Market Segmentation  

The worldwide business process outsourcing market segmentation is based on the service, end-user, and geography.

Business Process Outsourcing Market By Service

• Finance & Accounting
• Knowledge Process Outsourcing
• Human Resources
• Customer Services
• Procurement & Supply Chain
• Others

According to a business process outsourcing industry analysis, the customer services segment can lead the global market in 2021 and is predicted to grow significantly in the coming years. The segment's dominance can be due to the growing number of service centers throughout the world that require both online and offline technical help. Client service-based BPO firms specialize in addressing customer requests and inquiries via email, chatrooms, social media platforms, phone calls, as well as other channels.

Business Process Outsourcing Market By End-User

• Banking, Financial Services, and Insurance (BFSI)
• Retail
• Healthcare
• IT & Telecommunication
• Manufacturing
• Others

According to the business process outsourcing market forecast, the BFSI segment would continue growing in the market over the next few years. Financial organizations have traditionally viewed BPO as a tool for increasing cost efficiency. To improve their customer service, BFSI firms are choosing for outsourcing activities in numerous fields of the BFSI sector, particularly asset management as well as investment management.

Business Process Outsourcing Market Regional Outlook