Business Process Outsourcing Market Size, Share, and Trends 2026 to 2035

Revenue, 2025

USD 347.95 Bn

Forecast Year, 2035

USD 906.27 Bn

CAGR, 2026 - 2035

10.05%

Report Coverage

Global

What is the Business Process Outsourcing Market Size?

The global business process outsourcing market size was calculated at USD 347.95 billion in 2025 and is predicted to increase from USD 384.14 billion in 2026 to approximately USD 906.27 billion by 2035, expanding at a CAGR of 10.05% from 2026 to 2035. The growing acceptance of BPO services in telecommunication and IT services is raising the demand in the market.

Business Process Outsourcing Market Key Takeaways

• North America dominated the global market with the largest market share of 36% in 2025.
• Asia Pacific is projected to expand at a notable CAGR during the forecast period.
• By service type, the customer services segment held the largest market share in 2025.
• By service type, the human resource services segment is estimated to be the fastest-growing segment during the forecast period.
• By end use, the IT and telecommunications segment captured the biggest market share in 2025.
• By end use, the BFSI segment is expected to grow at a significant CAGR from 2026 to 2035.

Role of AI in the Business Process Outsourcing Market

With features such as optimization and automation, artificial intelligence enhances several business operations, resulting in improved efficiency, enhanced customer experience, and decreased charges. It has tools like robotic process automation that help with repetitive tasks and automate routines such as customer queries, data entry, and invoice processing. It decreases the possibility of human error, which helps accelerate the process. By introducing virtual assistants and chatbots to this market, AI can provide support at any time to resolve customers' inquiries.

Business Process Outsourcing Market Growth Factors

• Many organizations don't have enough resources to fulfill their tasks and projects. So, they hire third parties who accomplish assigned tasks in a given period. This is known as business process outsourcing.
• Business process outsourcing is based on contracts for a specific period. There are varieties of business processes that can be outsourced. Those business processes are defined as marketing, human resources, accounting, supply chain management, and customer support and service.
• Small-scale organizations have started outsourcing their processes. This is creating prospects for the growth of the global business process outsourcing market.
• The increased growth of the business process outsourcing market will be driven by increasing competitiveness from new outsourcing sites, as well as pressure on businesses to run more cost-effectively.
• The low-wage occupations in the business process outsourcing market will continue to be threatened by automation.
• Technological advancements and innovation are helping organizations to carry out their business effectively and efficiently.
• Robotics technology is becoming one of the prominent technologies in the global business process outsourcing market. Robotics technology helps improve quality and performance and also helps save money.
• The countries where work costs are low are the major contributors to the expansion of the business process outsourcing market. The fact is that low-cost countries have cheaper rates of work and readily available resources.

Market Scope

The cost control is one of the main advantages of business process outsourcing. In most cases, third party business process outsourcing services are less expensive than hiring individuals to perform it in-house. There are also a variety of cost-cutting opportunities in terms of international tax methods and the cost of establishing services in a particular country. Another advantage is that in-house staff may concentrate on core operations rather than having to handle all human resources and payroll work, or whatever else is outsourced.

The security of business process outsourcing is a major problem for the growth of the business process outsourcing market. Many businesses process outsourcing arrangements need the organization handing over essential or sensitive data to the supplier to a great extent. As the supplier has access to a portion of their data supply chain, they must trust the vendor to a degree. The compliance with national or industry standards is also an issue that comes up from time to time.

Another issue with the business process outsourcing is the amount of control clients must hand over the third-party providers. The cost barriers, where third party service businesses abruptly boost the cost of services owing to some benchmark, are a source of concern.

When businesses refer to business process outsourcing firms, they frequently speak to the kind of business functions and tasks that will be outsourced. The business process outsourcing services are classified into two categories based on the demands of the firm. Those two categories are back-office outsourcing and front office outsourcing.

The back-office outsourcing is a type of outsourcing that focuses on in-house business functions such as data collection, internet research, data entry, order processing, data analysis, quality assurance, payment processing, billing, and information technology services. The front office business process outsourcing refers to the outsourcing of customer facing tasks like sales, marketing, customer service, technical support, and grievance redressal.

Segment Insights

Service Type Insights

In 2025, the customer services segment accounted revenue share of 33%. The growing number of service centers throughout the world that requires both online and offline technical help is responsible for the customer services segment's strong market share.

The human resource services segment, on the other hand, is predicted to develop at the quickest rate in the future years. The increasing demand for resources across several sub-segments such as recruiting and relocation, payment processing, and administration is projected to help the segment grow.

End Use Insights

The IT and telecommunications segment accounted revenue share of 36% in 2025. The rise in the number of IT companies and the rising industrialization are both contributing to the segment's growth. Several telecommunications procedures are being outsourced by telecom firms around the globe in order to lower their overall expenses. Various business tasks are outsourced by telecom enterprises.

The BFSI segment is fastest growing segment of the business process outsourcing market in 2025. Business process outsourcing has long been a reliable tool for improving the cost efficiency of financial institutions' operations, the quality of their services, and the flexibility of their business processes.

Regional Insights

U.S.Business Process Outsourcing Market Size 2026 to 2035

The U.S. business process outsourcing market was exhibited at USD 347.95 billion in 2025 and is projected to be worth around USD 906.27 billion by 2035, growing at a CAGR of 10.05% from 2026 to 2035.

North America region accounted market share of 36% in 2025. The increased adoption of cloud enablement and digital services, which necessitate frequent assistance and maintenance for corporate operations, was related to the increase in growth.

U.S. Market Trends

The U.S. business process outsourcing market is growing due to widespread adoption of technologies like AI, cloud computing, and automation, which enable more efficient and data-driven operations. Companies are increasingly outsourcing to focus on strategic, revenue-generating activities rather than routine tasks. Additionally, rising demand for BPO providers with domain expertise in sectors such as finance, healthcare, and IT is expanding services to include complex problem-solving and high-value solutions.

What Makes Asia Pacific the Fastest-Growing Region in the Business Process Outsourcing Market?

Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the forecast period. The government entities are likely to make major expenditures in infrastructure development, which will assist to improve the region's existing business process outsourcing ecosystems.

India Market Trends

India dominates the market in Asia Pacific. This is mainly due to its vast skilled workforce and robust tech infrastructure. Moreover, it is evolving from basic call centers to strategic partners, providing complex services such as Finance, HR, and IT, with AI or automation. Additionally, global companies are increasingly outsourcing complex and high-value processes to India to leverage efficiency, scalability, and innovation.

What Potentiates the European Business Process Outsourcing Market?

The market within Europe is expected to grow at a significant rate during the forecast period. This growth is driven by the increasing demand for cost optimization, operational efficiency, and digital transformation across enterprises. Companies across the region are outsourcing specialized functions such as finance, HR, IT, and customer support to focus on strategic priorities. Additionally, the adoption of advanced technologies like AI, automation, and cloud-based solutions is enhancing service capabilities and expanding opportunities for BPO providers across the region.

Italy Market Trends

Italian businesses, ranging from large corporations to SMEs, are heavily utilizing BPO to decrease labor costs and streamline operations, allowing them to concentrate on their core competencies. Additionally, the integration of digital technologies, such as AI, automation, and cloud platforms, is enhancing service efficiency and driving further market growth.

How is the Opportunistic Rise of Latin America in the Market?

Latin America is expected to grow at a notable rate in the business process outsourcing market during the forecast period. This is mainly due to a large pool of skilled, usually multilingual talent, such as Spanish, Portuguese, and even English. Companies from North America and Europe are increasingly outsourcing functions like customer service, IT, and finance to the region to achieve nearshoring benefits and operational efficiency. Additionally, investments in digital infrastructure, government support for IT initiatives, and the adoption of advanced technologies like AI and automation are further boosting BPO growth across Latin America.

What Drives the Business Process Outsourcing Market within the Middle East & Africa?

The market in the Middle East & Africa (MEA) is driven by rising adoption of advanced technologies like AI, cloud, and the demand for efficient customer experience solutions, which are driving the need for tech-enabled BPO. Companies are leveraging BPO to focus on core business activities while accessing skilled labor and specialized expertise. Additionally, investments in digital infrastructure, adoption of cloud and automation technologies, and government initiatives to promote economic diversification are accelerating BPO growth in the region.

Business Process Outsourcing Market Companies

• Tech Mahindra Limited
• HCL Technologies Limited
• Tata Consultancy Services Limited
• IBM Corporation
• Wipro Limited
• NCR Corporation
• Infosys Limited
• Invensis Technologies Pvt. Ltd
• Unity Communications
• Plaxonic Technologies

Segments Covered in the Report

By Service Type

• Finance & Accounting
• Human Resource
• KPO
• Procurement
• Customer Services
• Others

By End Use

• BFSI
• Healthcare
• Manufacturing
• IT & Telecommunications
• Retail
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa