According to a study conducted by FACT.MR, the Business Process Outsourcing market is expected to grow at a CAGR of 7.5% over the forecast period 2019-2029. Cost savings is the major factor that stimulates companies to outsource their business activities to a reliable business process outsourcing company. BPO is a method of contracting the operations and responsibilities of a specific business task to third party vendors. The services are provided for IT, finance & accounting, back-office process, ecommerce and support, human resource & recruitment process. Resolving consumer complaints is one of those key processes outsourced to different companies.
The cut-throat competition in the market has forced businesses to outsource their specific business tasks in order to maintain focus on their core activities such as accounting, human resources, IT services, payment processing etc. Outsourcing also helps in increasing operational efficiency, improving customer service, and bringing innovation and flexibility. Numerous organizations are considering outsourcing their tasks to specialized business process outsourcing companies as a solution to meet their back-office requirements. This provides them with advantages such as increased productivity, flexibility, long-term relationships, and also helps speed up business processes and workload management.
Key Findings of the Business Process Outsourcing Market Study
- IT and Telecommunications will secure the leading market share on account of rapidly evolving IT infrastructure.
- Knowledge process outsourcing will see an impressive growth rate within the forecast period.
- Remarkable market growth contributed by Banking, Financial Services, and Insurance.
- North America leads the global business process outsourcing market for more than 60%.
- The retail segment will show an impressive growth rate of over 8.6% through 2029.
- Asia Pacific will make remunerative opportunities for key players in the business process outsourcing market.
Business Process Outsourcing Market Segmentation
The BPO market can be segmented by service type:
- CRM BPO
- HRO BPO
- F & A BPO
- Other BPO services
According to thebusinessresearchcompany.com, in 2018 CRM BPO was the largest segment of BPO services market by service type at 33.8%. The F & A BPO services are expected to the fastest-growing segment going forward at a CAGR of 11.7%.
The BPO market can be segmented by end-use industry:
- Financial Services
- IT
- Wholesale & Retail
- Manufacturing
- Healthcare
- Others
According to thebusinessresearchcompany.com, in 2018 the BPO service market for financial services was the largest segment of the BPO services market by end use industry at 36.2%.
The BPO market can be segmented by automation type:
- Automated BPO services
- Manual BPO services
In 2018, the largest segment of the BPO services market was the manual BPO services by automation type at 81.4% and the automated BPO services market is expected to be the fastest-growing segment going forward at a CAGR 40.7%.
The BPO market can be segmented by service provider’s location:
- North America
- Asia Pacific
- Western & Eastern Europe
- Rest of the World
In 2018, the BPO services market in North America was the largest segment of the BPO services market by service provider’s location at 54.7%.
Market Segmentation by Geography
- North America – USA
- Asia Pacific- China, Japan, India, Australia
- Western Europe – UK, Germany, France, Spain, Italy
- Eastern Europe – Russia
- South America – Brazil
- Middle East
- Africa
According to thebusinessresearchcompany.com, in 2018, accounting for 38.1% of the global market, western Europe was the largest market segment for BPO. It was followed by North America, Asia-Pacific, and other regions. Going forward, the fastest-growing regions in the BPO services market will be Africa and the Middle East.
Key Players Include the Following
- Automatic Data Processing, Inc. (ADP)
- LLC
- Accenture PLC
- WNS (holdings)
- Capgemini
- Conduent Inc.
- Infosys BPM Limited
- TCS
- TTEC Holdings
- HCL
Key Driving factors of the Business Process Outsourcing Market
- The demand for cost-effective outsourcing boosts the BPO market growth.
- Due to the rapid growth of digital economy the BPO market growth is getting stronger in Asia Pacific.
- On account of innovative financial technologies, the market growth of Banking, Financial Services and Insurance (BFSI) sector is getting stronger.
- The prevalence of lean business models (the business that maximizes value while minimizing waste) is complementing the significant market growth in Europe.
Major Market Restraints
- Confidential data should be secured, so the risk associated with it is restraining the BPO market growth.
- Strict government regulations concerning offshoring and outsourcing activities limits the growth of BPO market.
A reliable business process outsourcing company enables other organizations from which the task is assigned to maintain focus on their core activities thus helping to enhance their business activities by increasing efficiency in operations and reducing operational costs. This is the major factor that influences the growth of the business process outsourcing market worldwide.
