Business Process Outsourcing Market (By Service Type: Finance & Accounting, Human Resource, KPO, Procurement, Customer Services, and Others; and By End Use: BFSI, Healthcare, Manufacturing, IT & Telecommunications, Retail, and Others; By Outsourcing Type; By Deployment Model; By Organization Size; By Ownership) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023 – 2032
The global business process outsourcing market was estimated at US$ 260 billion in 2022 and is expected to surpass around US$ 708.84 billion by 2032, poised to grow at a CAGR of 10.60% during the forecast period 2023 to 2032.
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The U.S. business process outsourcing market was valued at US$ 107.64 billion in 2022 and is predicted to grow around US$ 296.12 billion by 2032, at a CAGR of 10.70% between 2023 to 2032.
North America region accounted market share of 36% in 2022. 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.
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.
Many of the organizations don’t have enough resources to fulfill their tasks and projects. So, they hire third party who accomplish assigned tasks in a given period of time. This is known as business process outsourcing. The business process outsourcing is on the basis of contract for specific time period. There are varieties of business processes which can be outsourced. Those business processes are defined as marketing, human resource, accounting, supply chain management, and customer support and service. Nowadays, even small-scale organizations have started outsourcing their processes. This is creating future 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 be continued to be threatened by automation.
The technological advancements and innovation are helping organizations to carry out their business effectively and efficiently. The robotics technology is becoming one of the prominent technologies in the global business process outsourcing market. The robotics technology helps in improving quality and performance, and also helps in cost savings. The countries were work cost is low, are the major contributors to the expansion of the business process outsourcing market. The fact is that the low-cost countries have cheaper rates of work and resources are readily available. All these factors is driving the growth of the market.
Report Coverage | Details |
Market Size by 2032 | USD 708.84 Billion |
Growth Rate from 2023 to 2032 |
CAGR of 10.60% |
North America Market Share in 2022 | 36% |
IT and telecommunications Market Share in 2022 | 34% |
Customer Services Market Share in 2022 | 31% |
Forecast Period | 2023 to 2032 |
Segments Covered | Service Type, End Use, Outsourcing Type, Deployment Model, Organization Size, Ownership, Geography |
Companies Mentioned | 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 |
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.
In 2022, 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.
The IT and telecommunications segment accounted revenue share of 36% in 2022. 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 2022. The 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.
Key Developments
The mergers and acquisitions, partnerships, new product development, business expansions, collaborations, supply contracts, agreements, and contracts are some of the important marketing strategies used by the major market players to maintain their market position. These market players act as third-party firms for the organizations who outsource business processes from them.
Segments Covered in the Report
By Service Type
By End Use
By Outsourcing Type
By Deployment Model
By Organization Size
By Ownership
By Geography
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Ownership Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Business Process Outsourcing Market
5.1. COVID-19 Landscape: Business Process Outsourcing Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Business Process Outsourcing Market, By Service Type
8.1. Business Process Outsourcing Market, by Service Type, 2023-2032
8.1.1. Finance & Accounting
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Human Resource
8.1.2.1. Market Revenue and Forecast (2020-2032)
8.1.3. KPO
8.1.3.1. Market Revenue and Forecast (2020-2032)
8.1.4. Procurement
8.1.4.1. Market Revenue and Forecast (2020-2032)
8.1.5. Customer Services
8.1.5.1. Market Revenue and Forecast (2020-2032)
8.1.6. Others
8.1.6.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Business Process Outsourcing Market, By End Use Type
9.1. Business Process Outsourcing Market, by End Use Type, 2023-2032
9.1.1. BFSI
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Healthcare
9.1.2.1. Market Revenue and Forecast (2020-2032)
9.1.3. Manufacturing
9.1.3.1. Market Revenue and Forecast (2020-2032)
9.1.4. IT & Telecommunications
9.1.4.1. Market Revenue and Forecast (2020-2032)
9.1.5. Retail
9.1.5.1. Market Revenue and Forecast (2020-2032)
9.1.6. Others
9.1.6.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Business Process Outsourcing Market, By Outsourcing Type
10.1. Business Process Outsourcing Market, by Outsourcing Type, 2023-2032
10.1.1. Offsource
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. Nearshore Onshore
10.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 11. Global Business Process Outsourcing Market, By Deployment Type
11.1. Business Process Outsourcing Market, by Deployment Type, 2023-2032
11.1.1. Cloud
11.1.1.1. Market Revenue and Forecast (2020-2032)
11.1.2. On Premise
11.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 12. Global Business Process Outsourcing Market, By Organization
12.1. Business Process Outsourcing Market, by Organization, 2023-2032
12.1.1. Large Enterprises
12.1.1.1. Market Revenue and Forecast (2020-2032)
12.1.2. SMEs
12.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 13. Global Business Process Outsourcing Market, By Ownership
13.1. Business Process Outsourcing Market, by End Use Type, 2023-2032
13.1.1. Captive
13.1.1.1. Market Revenue and Forecast (2020-2032)
13.1.2. Third Party
13.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 14. Global Business Process Outsourcing Market, Regional Estimates and Trend Forecast
14.1. North America
14.1.1. Market Revenue and Forecast, by Service (2020-2032)
14.1.2. Market Revenue and Forecast, by End Use (2020-2032)
14.1.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.1.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.1.5. Market Revenue and Forecast, by Organization (2020-2032)
14.1.6. Market Revenue and Forecast, by Ownership (2020-2032)
14.1.7. U.S.
14.1.7.1. Market Revenue and Forecast, by Service (2020-2032)
14.1.7.2. Market Revenue and Forecast, by End Use (2020-2032)
14.1.7.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.1.7.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.1.8. Market Revenue and Forecast, by Organization (2020-2032)
14.1.8.1. Market Revenue and Forecast, by Ownership (2020-2032)
14.1.9. Rest of North America
14.1.9.1. Market Revenue and Forecast, by Service (2020-2032)
14.1.9.2. Market Revenue and Forecast, by End Use (2020-2032)
14.1.9.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.1.9.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.1.10. Market Revenue and Forecast, by Organization (2020-2032)
14.1.11. Market Revenue and Forecast, by Ownership (2020-2032)
14.1.11.1.
14.2. Europe
14.2.1. Market Revenue and Forecast, by Service (2020-2032)
14.2.2. Market Revenue and Forecast, by End Use (2020-2032)
14.2.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.2.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.2.5. Market Revenue and Forecast, by Organization (2020-2032)
14.2.6. Market Revenue and Forecast, by Ownership (2020-2032)
14.2.7.
14.2.8. UK
14.2.8.1. Market Revenue and Forecast, by Service (2020-2032)
14.2.8.2. Market Revenue and Forecast, by End Use (2020-2032)
14.2.8.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.2.9. Market Revenue and Forecast, by Deployment (2020-2032)
14.2.10. Market Revenue and Forecast, by Organization (2020-2032)
14.2.10.1. Market Revenue and Forecast, by Ownership (2020-2032)
14.2.11. Germany
14.2.11.1. Market Revenue and Forecast, by Service (2020-2032)
14.2.11.2. Market Revenue and Forecast, by End Use (2020-2032)
14.2.11.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.2.12. Market Revenue and Forecast, by Deployment (2020-2032)
14.2.13. Market Revenue and Forecast, by Organization (2020-2032)
14.2.14. Market Revenue and Forecast, by Ownership (2020-2032)
14.2.14.1.
14.2.15. France
14.2.15.1. Market Revenue and Forecast, by Service (2020-2032)
14.2.15.2. Market Revenue and Forecast, by End Use (2020-2032)
14.2.15.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.2.15.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.2.16. Market Revenue and Forecast, by Organization (2020-2032)
14.2.16.1. Market Revenue and Forecast, by Ownership (2020-2032)
14.2.17. Rest of Europe
14.2.17.1. Market Revenue and Forecast, by Service (2020-2032)
14.2.17.2. Market Revenue and Forecast, by End Use (2020-2032)
14.2.17.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.2.17.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.2.18. Market Revenue and Forecast, by Organization (2020-2032)
14.2.18.1. Market Revenue and Forecast, by Ownership (2020-2032)
14.3. APAC
14.3.1. Market Revenue and Forecast, by Service (2020-2032)
14.3.2. Market Revenue and Forecast, by End Use (2020-2032)
14.3.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.3.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.3.5. Market Revenue and Forecast, by Organization (2020-2032)
14.3.6. Market Revenue and Forecast, by Ownership (2020-2032)
14.3.7. India
14.3.7.1. Market Revenue and Forecast, by Service (2020-2032)
14.3.7.2. Market Revenue and Forecast, by End Use (2020-2032)
14.3.7.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.3.7.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.3.8. Market Revenue and Forecast, by Organization (2020-2032)
14.3.9. Market Revenue and Forecast, by Ownership (2020-2032)
14.3.10. China
14.3.10.1. Market Revenue and Forecast, by Service (2020-2032)
14.3.10.2. Market Revenue and Forecast, by End Use (2020-2032)
14.3.10.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.3.10.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.3.11. Market Revenue and Forecast, by Organization (2020-2032)
14.3.11.1. Market Revenue and Forecast, by Ownership (2020-2032)
14.3.12. Japan
14.3.12.1. Market Revenue and Forecast, by Service (2020-2032)
14.3.12.2. Market Revenue and Forecast, by End Use (2020-2032)
14.3.12.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.3.12.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.3.12.5. Market Revenue and Forecast, by Organization (2020-2032)
14.3.12.6. Market Revenue and Forecast, by Ownership (2020-2032)
14.3.13. Rest of APAC
14.3.13.1. Market Revenue and Forecast, by Service (2020-2032)
14.3.13.2. Market Revenue and Forecast, by End Use (2020-2032)
14.3.13.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.3.13.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.3.13.5. Market Revenue and Forecast, by Organization (2020-2032)
14.3.13.6. Market Revenue and Forecast, by Ownership (2020-2032)
14.4. MEA
14.4.1. Market Revenue and Forecast, by Service (2020-2032)
14.4.2. Market Revenue and Forecast, by End Use (2020-2032)
14.4.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.4.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.4.5. Market Revenue and Forecast, by Organization (2020-2032)
14.4.6. Market Revenue and Forecast, by Ownership (2020-2032)
14.4.7. GCC
14.4.7.1. Market Revenue and Forecast, by Service (2020-2032)
14.4.7.2. Market Revenue and Forecast, by End Use (2020-2032)
14.4.7.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.4.7.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.4.8. Market Revenue and Forecast, by Organization (2020-2032)
14.4.9. Market Revenue and Forecast, by Ownership (2020-2032)
14.4.10. North Africa
14.4.10.1. Market Revenue and Forecast, by Service (2020-2032)
14.4.10.2. Market Revenue and Forecast, by End Use (2020-2032)
14.4.10.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.4.10.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.4.11. Market Revenue and Forecast, by Organization (2020-2032)
14.4.12. Market Revenue and Forecast, by Ownership (2020-2032)
14.4.13. South Africa
14.4.13.1. Market Revenue and Forecast, by Service (2020-2032)
14.4.13.2. Market Revenue and Forecast, by End Use (2020-2032)
14.4.13.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.4.13.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.4.13.5. Market Revenue and Forecast, by Organization (2020-2032)
14.4.13.6. Market Revenue and Forecast, by Ownership (2020-2032)
14.4.14. Rest of MEA
14.4.14.1. Market Revenue and Forecast, by Service (2020-2032)
14.4.14.2. Market Revenue and Forecast, by End Use (2020-2032)
14.4.14.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.4.14.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.4.14.5. Market Revenue and Forecast, by Organization (2020-2032)
14.4.14.6. Market Revenue and Forecast, by Ownership (2020-2032)
14.5. Latin America
14.5.1. Market Revenue and Forecast, by Service (2020-2032)
14.5.2. Market Revenue and Forecast, by End Use (2020-2032)
14.5.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.5.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.5.5. Market Revenue and Forecast, by Organization (2020-2032)
14.5.6. Market Revenue and Forecast, by Ownership (2020-2032)
14.5.7. Brazil
14.5.7.1. Market Revenue and Forecast, by Service (2020-2032)
14.5.7.2. Market Revenue and Forecast, by End Use (2020-2032)
14.5.7.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.5.7.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.5.8. Market Revenue and Forecast, by Organization (2020-2032)
14.5.8.1. Market Revenue and Forecast, by Ownership (2020-2032)
14.5.9. Rest of LATAM
14.5.9.1. Market Revenue and Forecast, by Service (2020-2032)
14.5.9.2. Market Revenue and Forecast, by End Use (2020-2032)
14.5.9.3. Market Revenue and Forecast, by Outsourcing (2020-2032)
14.5.9.4. Market Revenue and Forecast, by Deployment (2020-2032)
14.5.9.5. Market Revenue and Forecast, by Organization (2020-2032)
14.5.9.6. Market Revenue and Forecast, by Ownership (2020-2032)
Chapter 15. Company Profiles
15.1. Tech Mahindra Limited
15.1.1. Company Overview
15.1.2. Product Offerings
15.1.3. Financial Performance
15.1.4. Recent Initiatives
15.2. HCL Technologies Limited
15.2.1. Company Overview
15.2.2. Product Offerings
15.2.3. Financial Performance
15.2.4. Recent Initiatives
15.3. Tata Consultancy Services Limited
15.3.1. Company Overview
15.3.2. Product Offerings
15.3.3. Financial Performance
15.3.4. Recent Initiatives
15.4. IBM Corporation
15.4.1. Company Overview
15.4.2. Product Offerings
15.4.3. Financial Performance
15.4.4. Recent Initiatives
15.5. Wipro Limited
15.5.1. Company Overview
15.5.2. Product Offerings
15.5.3. Financial Performance
15.5.4. Recent Initiatives
15.6. NCR Corporation
15.6.1. Company Overview
15.6.2. Product Offerings
15.6.3. Financial Performance
15.6.4. Recent Initiatives
15.7. Infosys Limited
15.7.1. Company Overview
15.7.2. Product Offerings
15.7.3. Financial Performance
15.7.4. Recent Initiatives
15.8. Invensis Technologies Pvt. Ltd
15.8.1. Company Overview
15.8.2. Product Offerings
15.8.3. Financial Performance
15.8.4. Recent Initiatives
15.9. Unity Communications
15.9.1. Company Overview
15.9.2. Product Offerings
15.9.3. Financial Performance
15.9.4. Recent Initiatives
15.10. Plaxonic Technologies
15.10.1. Company Overview
15.10.2. Product Offerings
15.10.3. Financial Performance
15.10.4. Recent Initiatives
Chapter 16. Research Methodology
16.1. Primary Research
16.2. Secondary Research
16.3. Assumptions
Chapter 17. Appendix
17.1. About Us
17.2. Glossary of Terms
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