China Business Process Outsourcing Market Report 2022: A $38.38 Billion Market by 2030 - Analysis by Service (HR, KPO, Customer Services), & End Use (BFSI, Manufacturing, IT & Telecommunication) - ResearchAndMarkets.com
The China business process outsourcing market size is projected to reach USD 38.38 billion by 2030, growing at a CAGR of 11.3%
The China business process outsourcing market size is projected to reach USD 38.38 billion by 2030, growing at a CAGR of 11.3%
The market has been driven by several factors including international trade agreement, an increase in job opportunities by providing BPO-specific education to graduates, and the growing demand for outsourcing in BFSI, IT & telecommunication, and human resource domains.
Despite the lack of English proficiency in China, the country has developed strong educational reforms to create millions of outsourcing jobs. Investments by educational institutions to train students for the BPO industry have provided growth opportunities.
For instance, M&Y Global Services, an outsourcing company in China, in collaboration with educational institutes Shanghai Zhanjiang Institute for Education and Beijing Jade Bird Information Technology Training Centre, is training students with BPO skill sets. Such initiatives by key companies are expected to pave way for the market growth over the forecast period.
Furthermore, BPO involves contracting operations and responsibilities for a specific business function from an external service provider. As a result, a rise in demand for BPO services owing to benefits like reduced costs, increased flexibility, and enhanced service quality are expected to offer growth prospects for the market.
Moreover, BPO allows organizations to refocus on their core business competencies to deliver incremental value to their customers, which drives the demand from various end-use industries, such as BFSI, healthcare, manufacturing, and IT & telecommunications. For instance, financial institutions have collaborated with several BPO service providers for improved cost efficiency and ease of customer management across China.
Also, BPO is an integral part of the BFSI business model catering to various domains of the financial sector, including asset management, phone banking, customer service, and investment management, among others. The outbreak of the COVID-19 pandemic has adversely affected several industries in China in H1 of 2020.
The lockdown and travel restrictions across the globe significantly led to supply chain disruptions, impelling enterprises to work remotely. The pandemic also created challenges in outsourcing functions. BPO companies changed their business models by restructuring their Business Continuity Plans (BCPs) to a distributed workforce.
This distributed workforce model helped companies to hire a high-skilled workforce at a low cost and survive during the pandemic, as this allows companies to have employees' different options and ways of working. This may include remote working teams, small in-house teams, or a mix of both. However, the lack of infrastructure equipment and data security risks are the major concerns that led to a decrease in work efficiency and delays in meeting project deadlines.
China Business Process Outsourcing Market Report Highlights
- The customer service segment is expected to grow at a significant CAGR during the forecast period.
- The growing establishment of customer service centers that necessitate online and offline technical support is expected to drive the demand for BPO services in China.
- IT & telecommunication was the dominant end-use segment in 2021. The segment is anticipated to retain its leading position in the market throughout the forecast period.
- Infrastructure and service delivery costs are anticipated to increase; thus, outsourcing of non-core and critical business functions remains vital.
- This enables telecom companies to focus on innovation, improve business efficiency, and offer enhanced customer experiences.