Business Process Outsourcing (BPO) Market, by Service Type (Finance & Accounting, Human Resource, KPO, Procurement & Supply Chain, Customer Services, Others), End-use (BFSI, Healthcare, Manufacturing, IT & Telecommunications, Retail, Others), Outsourcing Type (Offshore, Nearshore, and Onshore), region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The Business Process Outsourcing (BPO) Market size was estimated at USD 285.86 billion in 2023 and is projected to reach USD 527.63 billion in 2030 at a CAGR of 9.15% during the forecast period 2023-2030.
Business process outsourcing (BPO) is a method of conducting business in which a company hires an outside service provider to carry out a crucial duty or activity. After identifying a procedure that, while important for its operations, is not part of its core value offering, an organization often contracts with another company for these services. Strong business process management and a thorough grasp of organizational processes are necessary for this level. Enterprise leaders frequently decide there is no benefit in having their own people do these commodity operations since they typically do not distinguish one firm from another. Companies estimate that outsourcing these procedures to an expert source might result in better outcomes. Payroll and accounting are two examples of procedures that are frequently considered to be ideal candidates for BPO by many firms.
The market for business process outsourcing (BPO) is expanding as a result of factors such as businesses' increasing emphasis on enhancing productivity and organizational agility, cutting costs, and accelerating key capabilities to survive the rapidly changing business dynamics. Additionally, a lot of businesses are concentrating on lowering their operating expenses so they can access global resources to satisfy the rising market needs. These factors have promoted the use of market services by a number of companies that concentrate on utilizing technical developments like cloud computing and Artificial Intelligence (AI) to increase corporate productivity.
In the projected term, security and intellectual property rights worries are anticipated to limit market expansion. The need to lower operating costs drives the outsourcer to locations without a legislative framework in place to guard against confidentiality breaches and infringement of intellectual property rights. Because even a tiny mistake can result in a permanent loss for the company's market position, outsourcing organizations are frequently concerned about how they outsource and handle the information supplied.
The effects of COVID-19 caused social and economic upheavals and complicated the process of outsourcing tasks. However, it is anticipated that these interruptions' effects on corporate operations would ultimately fuel the industry. By reorganizing their Business Continuity Plans (BCP) to a distributed workforce, BPO organizations have altered their business models. In order to create a more dependable business model that can withstand an unanticipated interruption like the COVID-19 pandemic, businesses have acknowledged the significance of continuous operations planning and disaster recovery. According to Accenture and Infosys Limited (Infosys BPM), two of the largest market suppliers, more than 80–90% of its workers were working remotely as of 2020 as a result of COVID-19.
The Business Process Outsourcing (BPO) Market is expected to grow during the forecast period. This growth can be attributed to several factors such as businesses' increasing emphasis on enhancing productivity and organizational agility, cutting costs, and accelerating key capabilities to survive the rapidly changing business dynamics. Moreover, one of the main factors promoting the use of BPO services is the rising popularity of cloud computing in business process outsourcing. However, concerns related to security and intellectual property rights are expected to restrain the growth of the market in the forecast period.
North America to Dominate the Market