New York, United States, July 13, 2022 (GLOBE NEWSWIRE) -- Business Process Outsourcing (BPO) is a crucial component of the worldwide outsourcing industry. Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) are two types of outsourcing (BPO). On the other hand, Business Process Outsourcing is fast gaining traction in various industries, including banking, financial services, and insurance (BFSI), healthcare, manufacturing, information technology and telecommunications (IT&T), retail, and others.
Due to increased demand for minimal non-core operational costs and a greater concentration on core capabilities across various end-use verticals, the market is expanding. Increased use of SaaS-based solutions, improvements in cloud-based infrastructure, and the rapid adoption of process automation in business processes contribute to market growth.
Rising Inclination Toward Outsourcing Drives the Market Swiftly
An organization's business activities are divided into core activities, critical activities, and non-core activities. Core activities are an organization's primary competencies that give it a strategic edge. Essential actions necessitate a unique skill set. Non-core activities, on the other hand, are the activities that support core activities and are primarily concerned with managing consumer-product relationships. It's crucial to categorize the above activities so that resources may be allocated effectively and services can be delivered on time. Furthermore, to maintain their market presence and extend their client base, corporations have begun to concentrate a more significant emphasis on core activities, resulting in the outsourcing of non-essential tasks.
Businesses that use business process outsourcing can opt to outsource specific services or business operations based on their unique needs. Payroll, IT, logistics, and legal services are just a few of the services available. Some of the potential benefits of outsourcing include lowering labor expenses and lowering and eliminating overheads related to human resources and equipment, leading to market growth.
Furthermore, different market players are integrating cloud computing into their business process outsourcing service portfolio to improve the outsourced process. Similarly, increased government attempts to encourage the adoption of cloud technology is one of the reasons propelling the market forward. The government's increased investment in cloud computing promotes overall market growth, increasing demand for business process outsourcing.
Emergence of Next Generation Services to Create New Opportunities for the Global Business Process Outsourcing Market
The rise and growth of the business process outsourcing (BPO) industry are fueled by innovation, global rivalry, and new technologies. BPO has given firms the ability to enhance earnings while reducing costs. The advantages gained through modern technologies such as process automation, cloud computing, social media, and so on also boost businesses. BPOs can improve the efficiency of their services even more with the rising effect of these technologies. Global outsourcing service providers are also expected to employ new technological breakthroughs to effectively manage talent shortages, improve product and service offerings, and respond to market difficulties while keeping operating costs low.
In the BPO arena, the increasing sophistication and ensuring process automation use results in an expanded virtual workforce. The robotic process automation is expected to boost the capacity to execute work while also lowering costs and improving accuracy. Labor-intensive back-office processes are likely to be taken over by rapidly increasing robotic process automation technology as a result of this. Furthermore, RPA does not necessitate costly and sophisticated integration, and it has no risk of unforeseen technology repercussions. Therefore its use in BPO is expected to grow during the projection period.
North America dominates the market over other regions. It is estimated to reach an expected value of USD 178 billion by 2030 at a CAGR of 7.9%. The increased usage of cloud enablement and digital-related services, which necessitates frequent help and maintenance for corporate operations, is attributed to the expansion.
Asia-Pacific is the fastest-growing market and is estimated to reach an expected value of USD 148 billion by 2030 at a CAGR of 10.3%. Leading vendors such as HCL Technologies Ltd, Infosys Ltd, Accenture, and Wipro are driving market expansion by increasing demand for talented workers, lowering labor costs, and making significant digital investments.
- The global business process outsourcing market was valued at USD 246 billion in 2021 and is expected to reach USD 513 billion by 2030, growing at a CAGR of 8.5% during the forecast period (2022-2030).
- The services segment has been categorized into Finance and Accounting, Knowledge Process Outsourcing (KPO), Human Resources, Customer Services, Procurement, Supply Chain, etc. The customer service segment holds the largest share in the global business process outsourcing market. It is estimated to reach an expected value of USD 178 billion by 2030 at a CAGR of 9.5%. Growing establishment of service centers that necessitate online and offline technical support has fueled the segment growth.
- By end-user, the global business process outsourcing market is divided into Banking and Financial Services Insurance (BFSI), Healthcare, Manufacturing, IT and Telecommunications, and Retail. IT and Telecommunications hold the largest share in the market. It is estimated to reach an expected USD 181 billion by 2030 at a CAGR of 8.8%. It includes various software development companies and telecommunication service providers.
- Region-wise, the global business process outsourcing market is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America and Asia-Pacific hold commanding positions in the market.
List of Top Business Process Outsourcing Market Companies
- Infosys Limited
- HCL Technologies Limited
- CBRE Group Inc.
- Wipro Limited
- TTEC Holdings, Inc.
- NCR Corporation
Global Business Process Outsourcing Market: Segmentation
- Finance and Accounting
- Human Resources
- Procurement and Supply Chain
- Customer Services
- Banking and Financial Services and Insurance (BFSI)
- IT and Telecommunications
- North America
- Latin America
- The Middle East and Africa