Business Process Outsourcing Market Size, Share, Trends, Growth and Forecast 2032

Business Process Outsourcing Industry Prospective:

The global business process outsourcing market size was evaluated at $344 billion in 2023 and is slated to hit $740 billion by the end of 2032 with a CAGR of nearly 9% between 2024 and 2032.

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Business Process Outsourcing Market: Overview

Business process outsourcing is referred to as the practice of contracting functions and responsibilities of a particular business process to a vendor. It involves outsourcing key business tasks to an external firm. For the record, business process outsourcing, also referred to as BPO, includes a range of functions such as IT solutions, customer service, human resources, finance & accounting, and legal services. Firms outsource their business with a focus on reducing employee costs, highlighting core competencies, enhancing operational efficiency, and increasing the flexibility & scalability of their key operations.

Key Insights

• As per the analysis shared by our research analyst, the global business process outsourcing market is projected to expand annually at the annual growth rate of around 9% over the forecast timespan (2024-2032)
• In terms of revenue, the global business process outsourcing market size was evaluated at nearly $344 billion in 2023 and is expected to reach $740 billion by 2032.
• The global business process outsourcing market is anticipated to grow rapidly over the forecast timeline owing to technological innovations and the need to enhance operational proficiency.
• In terms of service type, the information technology is slated to register the highest CAGR over the forecast period.
• Based on deployment mode, the offshore segment is predicted to contribute majorly towards global industry surge in the ensuing years.
• On the basis of end-user, the BFSI segment is likely to maintain segmental domination in the forthcoming years.
• Region-wise, the Latin American business process outsourcing industry is projected to register the fastest CAGR during the assessment timespan.

Business Process Outsourcing Market: Growth Factors

Technological breakthroughs and a preference for improving operating efficacy will prop up the global market expansion by 2032

Technological innovations and the need to enhance operational proficiency are expected to drive the global business process outsourcing market surge in the years ahead. Moreover, the integration of AI, cloud computing, and robotic process automation will spearhead the expansion of the global market.

Furthermore, the escalating demand for cloud-based solutions and globalization of business operations to effectively handle complexities of the operations will impel the global market space in the years ahead. Apparently, a large number of firms prefer flexible workforce solutions, which is slated to propel the market expansion across the globe.

Business Process Outsourcing Market: Restraints

Surging data security issues to retard the expansion of the global industry over forecast period

Growing data security concerns and communication issues can deter the expansion of the global business process outsourcing industry. Moreover, a huge employee attrition rate, along with cultural issues, can obstruct the growth of the industry across the globe. Budgetary constraints and tight deadlines set by clients leading to deteriorating service quality can hamper the global industry expansion.

Business Process Outsourcing Market: Opportunities

Rapid adoption of new digital systems will craft new growth opportunities for the global market

Swift acceptance of digital technologies, along with flourishing e-commerce, healthcare, and finance sectors, will open new growth avenues for the global business process outsourcing market. Surging complicatedness of these sectors needs special outsourcing that offers expertise in data management, compliance, and consumer engagement, which can multiply the global market expansion.

Business Process Outsourcing Market: Challenges

Fluctuating services in BPO procedures to challenge the global industry surge over forecast timeline

Quality control issues and loss of control over particular business processes are projected to challenge the global business process outsourcing industry surge in the coming years. Service disruption in BPO processes can damage the credibility of both the outsourcer as well as the firm to which the process is outsourced. This, in turn, can challenge the expansion of the global industry.

Business Process Outsourcing Market: Report Scope

Business Process Outsourcing Market: Segmentation

The global business process outsourcing market is divided into service type, deployment mode, end-user, and region.         

In terms of service type, the business process outsourcing market across the globe is segmented into customer relationship management, human resources, finance & accounting, information technology, legal services, and supply chain management segments. Apparently, the information technology segment, which accrued nearly 50% of the global market earnings in 2023, is anticipated to register the fastest CAGR in the next couple of years as a result of swift technological breakthroughs, effectively managing cloud computing, cyber-security, and data analytics issues.  

Based on the deployment mode, the global business process outsourcing industry is sectored into on-site, offshore, and off-site segments. Furthermore, the offshore segment is likely to contribute notably towards the global industry expansion over 2024-2032. This can be due to the cost benefits offered by offshore BPO, which includes a skilled workforce in countries such as the Philippines and India as well as the Eastern part of Europe.

On the basis of end-user, the global business process outsourcing market is segregated into BFSI, telecommunications, healthcare, retail, IT & ITES, and manufacturing segments. Moreover, the BFSI segment, which led the segmental expansion in 2023, is projected to retain segmental leadership in the forecasting timeline owing to the need for efficiently handling complex & repetitive functions such as customer onboarding, loan processing, and risk management. Reportedly, BPO service providers offer strong security for data protection, thereby driving the segmental surge.   

Business Process Outsourcing Market: Regional Insights

Asia-Pacific is projected to maintain leading position in the global market over the projected time-interval

Asia-Pacific, which accounted for nearly 75% of the global business process outsourcing market size in 2023, is expected to maintain a number one position in the global market during the assessment timeline. Additionally, the regional market expansion in the next few years can be credited to supportive government policies promoting ITES activities in countries such as India.

Moreover, the availability of strong infrastructure in the country will proliferate the size of the market in the region. Presence of key players in India and the Philippines will drive the regional market trends. Huge focus on innovations and the launch of new technologies will contribute humungously towards the market growth in APAC.  

The Latin American business process outsourcing industry is set to record the highest CAGR in the predicted timeline. The swift elevation of the industry in the region can be credited to the easy availability of a workforce at lesser wages and access to skilled professionals in countries such as Mexico and Brazil. Furthermore, a surge in the fund allocation in telecommunications and a focus on developing specialized solutions to fulfill customer requirements will embellish the expansion of the regional industry.

Business Process Outsourcing Market: Competitive Space

The global business process outsourcing market profiles key players such as:

• HCL Technologies
• Accenture plc
• Concentrix
• Intetics
• TCS
• WNS
• Cognizant Technologies
• Genpact
• Unity Communications
• ADP
• Teleperformance
• Wipro Private Limited
• Capgemini
• Infosys Limited
• Rely Services Inc
• EXL Service

The global business process outsourcing market is segmented as follows:

By Service Type

• Customer Relationship Management
• Human Resources
• Finance & Accounting Services
• Information Technology
• Legal Services
• Supply Chain Management

By Deployment Mode

• On-Site
• Offshore
• Off-Site

By End-User

• BFSI
• Telecommunications
• Healthcare
• Retail
• IT & ITES
• Manufacturing

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa