Market Overview:
Business process outsourcing involves contracting external service providers to manage non-core but critical business functions. This allows companies to focus on their core operations and strategies. Key functions that are commonly outsourced include finance and accounting, human resources, customer relationship management, and procurement.
Market key trends:
One of the major trends in the business process outsourcing market is the increasing adoption of cloud-based solutions. Cloud platforms offer scalability, flexibility, and easy accessibility which helps companies to manage outsourced processes efficiently. This has prompted many BPO service providers to migrate their operations and infrastructure to the cloud to improve service delivery and optimize costs. For example, WNS partnered with AWS to launch WNS agileCloudTM which provides cloud-based solutions for digital transformation.
Segment Analysis
The global business process outsourcing market is segmented by process, industry vertical, and geography. Based on process, the market is divided into finance and accounting, customer services, human resource, KPO, and procurement and supply chain. Among these, the finance and accounting segment held the largest market share in 2022 owing to cost savings, scalability, and compliance with different regulatory requirements provided by BPO service providers.
Key Takeaways
The global business process outsourcing (BPO) market size is expected to reach US$ 261.89 billion in 2022, growing at a CAGR of 9.4% during the forecast period of 2023 to 2030. The increasing need to cut operational costs and focus on core competencies are driving the market growth.
Regionally, North America dominated the market in 2022 with a market share of over 35% due to increasing adoption of advanced technologies in the region. Asia Pacific is expected to witness the fastest growth over the forecast period attributed to strong presence of BPO vendors and availability of low-cost skilled workforce in developing countries such as India, the Philippines, and China.
Key players operating in the business process outsourcing market are Accenture, Teleperformance SE, Infosys Limited (Infosys BPM), WNS (Holdings) Ltd., HCL Technologies Limited, AMDOCS, CBRE Group Inc., Sodexo, NCR Corporation, TTEC Holdings, Inc., Wipro Limited, and Capgemini. Major players are focusing on partnerships, new service offerings, and mergers & acquisitions to gain a competitive advantage in the market. For instance, in 2022, Infosys completed the acquisition of consulting firm Germany-based Kaleidoscope Innovation to strengthen its product design and development capabilities.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
