Most companies are now considering business process outsourcing as part of their business strategy, which helps them focus on their core competencies and ultimately increase their profitability. According to a report from Grand View Research, the global business process outsourcing (BPO) market size valued at USD 195.2 billion in 2017 is expected to reach USD 343.2 billion by 2025, growing at a CAGR of 7.4%.
The key factors that fuel this market growth are the need to reduce operational costs, emergence of next-generation services such as big data analytics, cloud services, and robotic process automation. However, rising budgetary pressures and lack of effective framework to ensure quality of service are among the key factors hindering market growth.
The report divides this global BPO market on the basis of service, end-users, geography and key players.
Key highlights of the report include:
Based on service, the market is divided into Finance & Accounting, Human Resources, Knowledge Process Outsourcing, Procurement & Supply Chain, Customer Services and Others.
- Customer services segment that held the largest share of more than 30.0% in 2017 is predicted to register the highest growth rate over the forecast period 2018-2025. A major factor that has been fueling this segment is the growing establishment of service centers that require online and offline technical support.
- The finance and accounting segment is predicted to grow at a significant rate, owing to increasing presence of banking facilities and stringent regulatory requirements in the banking sector, which has resulted in the need for outsourcing services.
- The human resources service segment is expected to exceed a CAGR of 7.0%, due to growing need for resources across various sub-segments such as administration, recruitment & relocation, payment processing, and other employee benefit services.
End-use industries that benefit from BPO services include BFSI, healthcare, manufacturing, IT and telecommunications, retail, and others.
- The BFSI segment has a market share of just below 30.0% in the global market in 2017 and is anticipated to grow at the highest rate by 2025.
- Owing to the growth of IT companies and rapid industrialization across the globe, the IT and telecommunications sector is expected to register the second highest CAGR of over 7.0%.
Region-wise, the market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East and Africa.
- The Europe BPO market accounted for more than 25.0% of the global revenue in 2017. This growth is attributed to flexibility and customization of service offerings to better meet individual customer needs, coupled with the increasing demand for cloud computing technology.
- The Latin America market is expected to exhibit a CAGR exceeding 5.0% over the forecast period, due to rapid expansion of the manufacturing and consumer packaged goods (CPG) industries in this region.
Key players in this include Accenture, Infosys Limited, Wipro, and HCL. These players focus on partnerships and collaborations with the objective of consolidating their market presence.
For any business to grow, value-added support is necessary. Reliable services like data entry outsourcing and back office support provided by experienced BPO companies can help businesses improve their workflow and thus increase productivity.