The 'Business Process Outsourcing Market Size, Share & Trends Analysis Report by Service Type (Customer Services, Finance & Accounting), by End-Use (IT & Telecommunication, BFSI), by Region, and Segment Forecasts, 2022-2030' report has been added to ResearchAndMarkets.com's offering.
The global business process outsourcing market is anticipated to reach USD 525.2 billion by 2030, registering a CAGR of 9.1% from 2022 to 2030. Factors such as the growing demand for outsourcing services across BFSI, IT & telecommunication, and human resource industries and the rising inclination of organizations to focus on their core competencies are expected to drive the market.
Furthermore, the emergence of next-generation services, such as smart self-service and personalized consumer experience, and increasing consumer demand for multi-channel communication are expected to create opportunities for the BPO market during the forecast period.
Over the last decade, the business process outsourcing industry has experienced tremendous growth, owing to benefits offered by BPO services, such as cost savings and increased flexibility. The global service industry has witnessed a dynamic shift with the advancement of the information and communication technology industry. Outsourcing business processes enables organizations to cut costs by shifting operations to nearshore or offshore locations, leveraging a low-cost and dynamic talent pool to meet business requirements.
Additionally, the rising adoption of cloud-based services, artificial intelligence, and robotic process automation in the BPO sector is expected to promote market growth during the forecast period. Online interactions, cross-channel campaigns, and omnichannel communications are also expected to play a pivotal role in improving customer engagement processes.
The COVID-19 pandemic adversely affected the BPO industry. Varying degrees of lockdowns and travel restrictions significantly led to disruptions in the supply chain, forcing many enterprises to work remotely. BPO companies faced challenges, such as data security and lowered productivity, due to either the lack of supervision or inadequate infrastructure at employees' homes. Other issues included difficulties encountered while recording calls from remote work locations and the exposure of employee data to clients.
Business Process Outsourcing Market Report Highlights
- Based on service type, the customer service segment dominated the market in 2021. The segment is also expected to dominate the market during the forecast period owing to the increasing demand for service centers across the globe that need both online and offline technical support.
- With the steady growth of the global IT & telecommunication sector, the segment captured a sizeable revenue share in 2021. The segment is expected to expand at a steady pace during the forecast period due to a rise in the number of IT companies and rapid industrialization worldwide.
- Asia Pacific regional market is anticipated to expand at a positive CAGR during the forecast period. This growth can be attributed to the significant investments in infrastructure development by the governments of developing countries, such as India.
- Key players operating in the market and third-party service providers are struggling to cope with changing work conditions due to the COVID-19 pandemic. Moreover, the shift of BPO organizations from single-function operations to multi-functional operations, to minimize the risk impact at any single location, is also expected to impact the growth prospects of the market in the near future.