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Business Process Outsourcing (BPO) - Global Market Trajectory & Analytics

  • ID: 347963
  • Report
  • February 2022
  • Region: Global
  • 776 Pages
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • Accenture Plc
  • Capgemini SE
  • CGI Group, Inc.
  • Genpact Limited
  • NTT DATA, Inc.
  • StarTek, Inc.

Global Business Process Outsourcing (BPO) Market to Reach $215.9 Billion by 2026


Business Process Outsourcing (BPO), a segment of outsourcing, is defined as a technique of delegating responsibility of a range of business processes to third-party service provider for a fixed consideration. Rapid increase in the size and scope of BPO industry is attributed to the growing desire of global businesses to rationalize costs and address issues such as shortage of skilled personnel. Various benefits offered by BPO including cost reduction, improved customer services, better focus on core businesses, competitive capabilities, and speed to market, have encouraged enterprises to adopt the outsourcing model. The BPO industry has been witnessing rise in smaller deals, hybrid offshoring, larger governance needs and reduced cost consultancy models. Concepts such as robotic process automation, SaaS, and cloud computing have transformed BPO practices, leading to better operational effectiveness and productivity.

Amid the COVID-19 crisis, the global market for Business Process Outsourcing (BPO) estimated at US$161.9 Billion in the year 2020, is projected to reach a revised size of US$215.9 Billion by 2026, growing at a CAGR of 5.2% over the analysis period. Customer Services, one of the segments analyzed in the report, is projected to record a 4.2% CAGR and reach US$69.4 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Human Resources segment is readjusted to a revised 4.5% CAGR for the next 7-year period. Customer services BPO includes outsourcing services aimed at offering support for client`s customer care operations as well as business processes pertaining to the customer contact center. This segment has now emerged as a major approach to deal with advanced, value-added functions that include customer care and analytics, consulting and implementation, and training and support. Human Resources (HR) BPO or HRO refers to the integrated operation and delivery of several HR processes, which are performed by a service provider on a contract basis. Common services covered as part of HRO contracts include employee benefits, payroll, recruitment, compliance, and training and development.



The U.S. Market is Estimated at $66 Billion in 2021, While China is Forecast to Reach $6.8 Billion by 2026


The Business Process Outsourcing (BPO) market in the U.S. is estimated at US$66 Billion in the year 2021. China, the world`s second largest economy, is forecast to reach a projected market size of US$6.8 Billion by the year 2026 trailing a CAGR of 6.1% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.5% and 3.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.4% CAGR. Like other commercial enterprise functions, outsourcing was first conceptualized and implemented in the developed nations, which continue to wield immense authority in the worldwide BPO industry, even after attaining significant maturity. Outsourcing model is widely deployed across various business functions including accountancy, HR, production, customer relations, logistics, and warehouse management etc., as a cost-, time- and resource-saving method. Currently, the US constitutes the largest consumer of BPO services. The presence of a large number of companies with geographically dispersed business operations/units and employees in Latin America and Asia would enhance the demand for outsourcing services. Financial services and telecom industries are expected to offer potential opportunities for service providers in these regions.

Finance & Accounting Segment to Record 5.8% CAGR


Finance and accounting BPO (or FAO) involves handing over the responsibility and management of finance and accounting business processes to third party experts. Clients seek outsourcing services for F&A operations primarily to cut costs, reduce complexity of operations for the F&A department, and to comply with regulatory specifications. In the Finance & Accounting segment, complex processes such as external reporting, budgeting, accounting, planning, and forecasting continue to be outsourced due to the growing standardization of these functions. In the global Finance & Accounting segment, USA, Canada, Japan, China and Europe will drive the 5.6% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$33.7 Billion in the year 2020 will reach a projected size of US$49.4 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$5 Billion by the year 2026, while Latin America will expand at a 5.1% CAGR through the analysis period.

Select Competitors (Total 206 Featured) -

  • Accenture Plc
  • Alight Solutions LLC
  • American Data Exchange (AMDATEX)
  • Atos SE
  • Automatic Data Processing, Inc.
  • Capgemini SE
  • Capita Plc
  • Ceridian HCM, Inc.
  • CGI Group, Inc.
  • Cognizant Technology Solutions Corporation
  • DXC Technology Co.
  • EXLService Holdings, Inc.
  • Genpact Limited
  • Infosys BPM Limited
  • International Business Machines Corp.
  • KARVY Global Services Limited
  • NGA Human Resources
  • NTT DATA, Inc.
  • Randstad Holding NV
  • Sopra Steria Group
  • StarTek, Inc.
  • Tata Consultancy Services Limited
  • TriNet Group, Inc.
  • Wipro Limited
  • WNS Global Services Ltd.
Frequently Asked Questions about the Global Market for Business Process Outsourcing (BPO)

What is the estimated value of the Global Market for Business Process Outsourcing (BPO)?

The Global Market for Business Process Outsourcing (BPO) was estimated to be valued at $161.9 Billion in 2020.

What is the growth rate of the Global Market for Business Process Outsourcing (BPO)?

The growth rate of the Global Market for Business Process Outsourcing (BPO) is 4.9%, with an estimated value of $215.9 Billion by 2026.

What is the forecasted size of the Global Market for Business Process Outsourcing (BPO)?

The Global Market for Business Process Outsourcing (BPO) is estimated to be worth $215.9 Billion by 2026.

Who are the key companies in the Global Market for Business Process Outsourcing (BPO)?

Key companies in the Global Market for Business Process Outsourcing (BPO) include Accenture Plc, Alight Solutions LLC, American Data Exchange (AMDATEX), Atos SE, Automatic Data Processing, Inc., Capgemini SE, Capita Plc, Ceridian HCM, Inc. and Cognizant Technology Solutions Corporation.
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Accenture Plc
  • Capgemini SE
  • CGI Group, Inc.
  • Genpact Limited
  • NTT DATA, Inc.
  • StarTek, Inc.

I. METHODOLOGY


II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

  • Influencer Market Insights
  • World Market Trajectories
  • COVID-19 Pandemic to Dent Market Prospects in the Immediate Term
  • Reshoring to Gather Steam in Post COVID-19 Environment: Top Reasons for Reshoring (% of Client Companies Ascribing to Each Reason)
  • COVID-19 Induced Recession to Curtail Commercial Enterprise Activity, While Inducing Weakness into BPO Sector
  • World Economic Growth Projections (Real GDP, annual % Change) for 2019, 2020 & 2021
  • An Introduction to Business Process Outsourcing (BPO)
  • Vertical BPO Vs. Horizontal BPO
  • Onsite BPO Vs. Offsite BPO Vs. Offshore BPO
  • BPO Business Models
  • Salient Features of Transactional, Niche & Comprehensive BPO Models
  • Common Services Offered by BPO Providers
  • Business Process Outsourcing (BPO): Current Market Scenario and Outlook
  • A Sneak Peak into Key Trends Observed by the BPO Industry
  • Developed Regions to Remain Primary Revenue Contributors
  • World BPO Market by Region (2020 & 2027): Percentage Breakdown of Revenues for Developed and Developing Regions
  • Robust Growth Opportunities in Developing Regions
  • The Asian BPO Phenomenon: Enabled by `Triple Convergence’
  • Latin America Emerges as a Global Delivery Location
  • Global BPO Market - Geographic Regions Ranked by Value CAGR for 2020-2027
  • A Brief Overview of Major Outsourcing Destinations
  • Competitive Landscape
  • Major Vendors of Finance & Accounting BPO Services
  • Leading Players in the Global F&A BPO Market (2019): Percentage Breakdown of Revenues
  • Procurement BPO Services: Dominant Players
  • ADP Holds Edge in HR BPO
  • Genpact: Prime Vendor of Banking BPO Services
  • Service Providers Focus on Innovative Offerings to Move Up Value Chain
  • M&A Activity Intensifies
  • Recent Market Activity
  • Business Process Outsourcing (BPO) - Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

  • Established Role in Business Process Implementation Across Diverse Sectors to Sustain Long-Term Growth
  • BPO: A Robust Tool for Enabling Global Expansion
  • For Creating Truly Global Products
  • To Drive Satisfaction Levels Among Customers Worldwide
  • Higher Awareness about Outsourcing Benefits: Another Major Factor Favoring Long-Term Growth
  • Advanced Technologies Strengthen Capabilities of BPO Model
  • Internet of Things (IoT) for Effective Delivery of BPO Services
  • Robotic Automation & Artificial Intelligence (AI) Seek Bigger Role in BPO Operations
  • Social Media Networking Trend Transforms Business Strategies
  • Growing Popularity of Cloud Computing
  • Growing Use of Mobile Based Customer Service Applications
  • Voice Biometrics: Growing Role in Customer Verification
  • Big Data Remains in Contention to Streamline Operations
  • BPO Providers Warm up to Green Computing
  • Strategic Innovations Take Center Stage in BPO Industry
  • Select Latest Innovations in the BPO Market
  • Commoditization, and Rise of Industry-Specific BPO, MSM & Bundled IT-BPO Services to Reshape the BPO Market
  • Platform BPO Seeks Opportunities
  • Platform BPO Vs Traditional BPO
  • Advantages of Platform BPO
  • Challenges for Platform BPO
  • Sourcing Strategy: Means to Achieve Business Process
  • Sole Sourcing: A Model for Increasing Operational Efficiency
  • Multi-Source Approach Gathers Steam
  • The Importance of Impact Sourcing
  • Offshore BPO Remains Highly Relevant Offering Cost Economies
  • Nearshoring Finds Favor among Businesses
  • Trade-off between Quality & Cost Warrants Revamp of the Global BPO Industry
  • Emphasis on Business Process Improvement to Extend Opportunities
  • Small and Mid-Size Businesses (SMBs): Expanding Clientele
  • Novel Opportunities for BPO in New Business Areas
  • An Insight into Major Horizontal Segments
  • Customer Services BPO: Largest Product Category
  • Human Resources BPO (HRO) Remains a High-Profile Segment
  • Finance and Accounting BPO (FAO): A Thriving Market
  • Knowledge Process Outsourcing (KPO): A Small yet Growing Market
  • Procurement BPO: An Overview
  • Review of Select End-Use Markets
  • Manufacturing: Noteworthy End-Use Sector
  • COVID-19 Impact on Manufacturing Sector to Curtail Short-Term Prospects for BPO Services
  • Telecommunications & Technology
  • Banking, Insurance & Finance Services
  • Banking Sector
  • Insurance
  • Retail Sector
  • Other End-Use Sectors
  • Issues & Challenges
  • Protectionist Policies Niggle Offshore BPOs
  • Uncertainties in Politico-Economic Policies Challenge BPO Sector
  • Re-shoring Strategies Highlight Salary Disparities in Different Regions
  • Alternate Offshore Locations Challenge Dominance of Traditional Centers
  • Data Security Issues

4. GLOBAL MARKET PERSPECTIVE


III. MARKET ANALYSIS

UNITED STATES

  • Business Process Outsourcing (BPO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
  • The United States: Prime BPO Market
  • Percentage (%) Share of the US in the World BPO Revenues (2020E & 2027P)
  • Outsourcing Strategy Evolution in the US - A Review
  • American Enterprises Rely on Offshoring to Save Costs
  • Nearshore Strategy Gains Strength
  • A Review of BPO in Key Application Segments
  • Win-Win for US Outsourcing Companies
  • Indian BPOs Set Up Onshore Service Centers in US
  • Impact of Protectionist Policies

CANADA

  • HR Outsourcing: On an Upswing

JAPAN

  • Business Process Outsourcing (BPO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)

CHINA

  • Business Process Outsourcing (BPO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)
  • Market Overview
  • Emphasis on ‘China-to-China’ Outsourcing
  • Back Office Outsourcing
  • HR Outsourcing in China

EUROPE

  • Business Process Outsourcing (BPO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)
  • BPO Sector in Europe - An Overview
  • Trends & Opportunities

FRANCE

  • Business Process Outsourcing (BPO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)

GERMANY

  • Business Process Outsourcing (BPO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)
  • Germany - A Key Consumer of BPO & SSC Services

ITALY

UNITED KINGDOM

  • Business Process Outsourcing (BPO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)
  • Major BPO Destination in Europe
  • Competitive Landscape
  • Leading Players in UK BPO Services Market (2019E): Percentage Breakdown of Market Share
  • Domestic Vendors Eye Overseas Markets

SPAIN

RUSSIA

  • Market Overview

REST OF EUROPE

  • Central & Eastern Europe (CEE) Emerges as Outsourcing Hub
  • Focus on Nordic Region Outsourcing Market - A Complementary Review

ASIA-PACIFIC

  • Business Process Outsourcing (BPO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)
  • Asia-Pacific - The Rapidly Growing BPO Market

AUSTRALIA

  • Business Process Outsourcing (BPO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Australia for 2022 (E)
  • Brief Market Overview

INDIA

  • Business Process Outsourcing (BPO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in India for 2022 (E)
  • India’s Formidable BPO Industry Leads the Way
  • Outsourcers from India Set to Gain from Consolidation of Technology Engagements by Clients amidst COVID-19 Crisis
  • Vast Pool of Skilled Workforce, Low Cost Operations & Overall Competencies Steer Indian BPO Sector
  • The Changing Role of Indian BPOs
  • Role of Captive BPOs
  • BPO Industry Focuses on Inorganic Growth Strategy
  • KPO Industry Gains Efficiency
  • Reverse Outsourcing: New Trend in Outsourcing
  • Financial Services Market - A Vital BPO Vertical
  • HR Outsourcing in India
  • Rural BPO Concept Strengthens
  • SMEs: Potential for Growth
  • Tier-II and Tier III Cities to Gain Prominence
  • Long Term Prospects Remain Favorable
  • Challenges Confronting Indian BPO Industry
  • The Dampeners
  • BPO Vendor Landscape in India
  • India Centric BPO Providers - Breakdown by Vertical Industry
  • India-Centric BPO Providers: Breakdown by Product/Service Offerings

SOUTH KOREA

REST OF ASIA-PACIFIC

  • Malaysia
  • Philippines - A Favorable Destination for BPO Sector
  • Key Factors Responsible for Philippines’ Success in BPO Sector
  • Demand for Value-Added Services Drives Development of KPO
  • Philippines BPO Industry by End-Use Sector (2020E): Percentage Breakdown of Revenues for Call Center, IT, Transcription, and Others
  • Challenges for the BPO Industry
  • Next Wave Cities to Spur Growth Post COVID-19 Downturn
  • Progressive Forecasts for Philippine BPO Sector
  • Singapore
  • Sri Lanka
  • Thailand
  • Vietnam

LATIN AMERICA

  • Business Process Outsourcing (BPO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Latin America for 2022 (E)
  • Attractive Outsourcing Destination
  • Market Snapshots
  • BPO Industry Shift Up the Value Chain

ARGENTINA

  • Brief Overview

BRAZIL

  • A Favored Nearshoring Destination
  • Increasing Demand for Contact Center Outsourcing

MEXICO

  • Market Overview

REST OF LATIN AMERICA

  • Chile
  • Colombia
  • Costa Rica
  • Peru
  • Uruguay

MIDDLE EAST

  • Business Process Outsourcing (BPO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Middle East for 2022 (E)

IRAN


ISRAEL


SAUDI ARABIA


UNITED ARAB EMIRATES


REST OF MIDDLE EAST

AFRICA

  • Business Process Outsourcing (BPO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Africa for 2022 (E)
  • Market Overview
  • Egypt: An Emerging Market
  • Kenyan BPO Sector
  • South Africa
  • Tanzania: An Emerging Outsourcing Destination in East Africa

IV. COMPETITION

  • Total Companies Profiled: 206
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • Accenture Plc
  • Alight Solutions LLC
  • American Data Exchange (AMDATEX)
  • Atos SE
  • Automatic Data Processing, Inc.
  • Capgemini SE
  • Capita Plc
  • Ceridian HCM, Inc.
  • CGI Group, Inc.
  • Cognizant Technology Solutions Corporation
  • DXC Technology Co.
  • EXLService Holdings, Inc.
  • Genpact Limited
  • Infosys BPM Limited
  • International Business Machines Corp.
  • KARVY Global Services Limited
  • NGA Human Resources
  • NTT DATA, Inc.
  • Randstad Holding NV
  • Sopra Steria Group
  • StarTek, Inc.
  • Tata Consultancy Services Limited
  • TriNet Group, Inc.
  • Wipro Limited
  • WNS Global Services Ltd.
Note: Product cover images may vary from those shown