The business process outsourcing market is expected to grow by USD 40.16 bn from 2020 to 2025. The growth momentum of the market is projected to accelerate at a CAGR of 4% during the forecast period.
Business Process Outsourcing Market: Driver
The focus on reducing operational costs is driving the growth of the business process outsourcing market is. Operational costs refer to the cost involved in manufacturing goods and services, maintenance, and administration on a regular basis. BPOs help minimize operating costs and enhance business efficiency. They involve service aid for different business processes such as procurement, logistics, and customer care. Thus, organizations have started outsourcing their business processes and operations to focus on their core businesses. They need BPO services to increase market share, expand their customer base, and improve customer relationships. Logistics BPO outsourcing companies can help reduce operational costs by up to 70%. Logistics companies use third-party BPO providers to fuel revenue growth and attain operational efficiency at a reduced cost. These factors will have a positive impact on the global BPO market.
Get lifetime access to our Technavio Insights. Subscribe now to our most popular “Lite Plan” billed annually at USD 3000. View 3 reports monthly and Download 3 Reports Annually!
Business Process Outsourcing Market: Segmentation Analysis
By end-user, the business process outsourcing market has been segmented into IT and telecommunication, BFSI, retail, healthcare, and others. The IT and telecommunication segment will have significant market share growth during the forecast period. The growth of this segment is driven by technological advances, fast growth in data traffic, and growing demand for digital content and communication by consumers.
By geography, the business process outsourcing market has been segmented into North America, Europe, APAC, MEA, and South America. North America will account for 38% of the market’s growth during the forecast period. The US is the key country for business process outsourcing in North America. Market growth in this region will be slower than the growth of the market in South America, MEA, and APAC. The rise in the adoption of advanced technologies such as cloud computing solutions, social media, AI, and RPA will drive the business process outsourcing market growth in North America during the forecast period.
Know more about the contribution of each segment. Download Free Sample Report
Business Process Outsourcing Market: Vendor Analysis
The business process outsourcing market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market. The report also offers information on several market vendors, including Accenture Plc, Automatic Data Processing Inc., Capgemini SE, Infosys Ltd., International Business Machines Corp., NEC Corp., NTT DATA Corp., Tata Consultancy Services Ltd., Wipro Ltd., and ZTE Corp. among others. The key offerings of some of these vendors are listed below:
- Accenture Plc – It offers intelligent finance operations, marketing solutions and other services. The services are availed by SynOps. It helps create a data-driven operating model that connects intelligent technologies, talent, and data and analytics to provide real-time, actionable insights.
- Automatic Data Processing Inc. – The company offers payroll outsourcing, small business payroll and other services.
- Capgemini SE – The company offers supply chain management solutions. It includes a range of services integrating supply chain master data with planning, execution, and analytics. It offers finance and accounting solutions and other services.
Software Testing Services Market in ANZ by Product and End-user – Forecast and Analysis 2021-2025
Customer Engagement Solutions Market by Component and Geography – Forecast and Analysis 2022-2026
Business Process Outsourcing Market Scope
|Growth momentum & CAGR||Accelerate at a CAGR of 4%|
|Market growth 2021-2025||USD 40.16 billion|
|YoY growth (%)||3.53|
|Regional analysis||North America, Europe, APAC, MEA, and South America|
|Performing market contribution||North America at 38%|
|Key consumer countries||US, UK, Germany, China, and Japan|
|Competitive landscape||Leading companies, Competitive strategies, Consumer engagement scope|
|Key companies profiled||Accenture Plc, Automatic Data Processing Inc., Capgemini SE, Infosys Ltd., International Business Machines Corp., NEC Corp., NTT DATA Corp., Tata Consultancy Services Ltd., Wipro Ltd., and ZTE Corp.|
|Market dynamics||Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period|
|Customization purview||If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.|
Table of Contents
- Market ecosystem
- Value chain analysis
- Market definition
- Market segment analysis
- Market size 2020
- Market outlook: Forecast for 2020 – 2025
Five Forces Analysis
- Five forces summary
- Bargaining power of buyers
- Bargaining power of suppliers
- Threat of new entrants
- Threat of substitutes
- Threat of rivalry
- Market condition
Market Segmentation by End-user
- Market segments
- Comparison by End user
- IT and telecommunication – Market size and forecast 2020-2025
- BFSI – Market size and forecast 2020-2025
- Retail – Market size and forecast 2020-2025
- Healthcare – Market size and forecast 2020-2025
- Others – Market size and forecast 2020-2025
- Market opportunity by End user
- Customer landscape
- Geographic segmentation
- Geographic comparison
- North America – Market size and forecast 2020-2025
- Europe – Market size and forecast 2020-2025
- APAC – Market size and forecast 2020-2025
- MEA – Market size and forecast 2020-2025
- South America – Market size and forecast 2020-2025
- Key leading countries
- Market opportunity by geography
- Market drivers
- Market challenges
- Market trends
- Landscape disruption
- Vendors covered
- Market positioning of vendors
- Accenture Plc
- Automatic Data Processing Inc.
- Capgemini SE
- Infosys Ltd.
- International Business Machines Corp.
- NEC Corp.
- NTT DATA Corp.
- Tata Consultancy Services Ltd.
- Wipro Ltd.
- ZTE Corp.
- Scope of the report
- Currency conversion rates for US$
- Research methodology
- List of abbreviations
For more such updates and perspectives around Digital Innovation, IoT, Data Infrastructure, AI & Cybersecurity, go to AI-Techpark.com.