Business Process Outsourcing Market (By Service Type: Customer Services, Finance & Accounting; By End-use: IT & Telecommunication, BFSI) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global business process outsourcing market was surpassed at USD 261.96 billion in 2022 and is expected to hit around USD 644.47 billion by 2032, growing at a CAGR of 9.42% from 2023 to 2032.

Key Pointers

• The customer services segment dominated the market in 2022 with a revenue share exceeding 30.02%.
• The finance and accounting segment is predicted to witness significant growth over the forecast period. 
• The IT & telecommunication segment held the largest revenue share in 2022, accounting for around 34.07% of the overall market.
• The BFSI segment is likely to witness the fastest growth by 2030 and a CAGR of over 10.1% in the forecast period.
• North America accounted for over 35.11% revenue share of the market in 2022 and is expected to grow steadily over the forecast period. 
• Asia Pacific is predicted to register the highest CAGR from 2023 to 2032.

BPO refers to the process of outsourcing operations and responsibilities of many business functions to external service providers. These services find prominent demand due to their benefits such as increased flexibility, reduced costs, and enhanced service quality. Moreover, the market allows businesses to refocus on their core business activities to deliver incremental value to their customers. Owing to these benefits, BPO services witness demand across end-use industries such as healthcare, BFSI, and IT & telecommunications. 

The factors such as the rising focus of enterprises on improving efficiency and organizations’ agility, reducing operating costs, and accelerating core competencies to survive the constantly changing business dynamics drive the growth of the business process outsourcing market. Moreover, many organizations are focusing on reducing the cost of conducting business to accessing worldwide resources to meet the increasing industry demands. These aspects have encouraged the adoption of market services across several organizations that focus on technological trends such as cloud computing and Artificial Intelligence (AI) for driving business efficiency. Additionally, the impact of COVID-19 raised the demand for standardized platform services which offer BPOs to resolve complex business processes, thereby generating avenues for business process outsourcing market growth.

The increasing popularity of cloud computing in business process outsourcing is one of the prominent factors influencing the adoption of BPO services. Cloud computing aids BPO operators in increasing the time to market, reducing costs, and improving the quality control process. Moreover, cloud computing in the market assures instant computing support and system access, universal access, and flexible provisioning whenever needed for required business purposes. These benefits are expected to positively impact the adoption of cloud computing in the BPO market during the forecast period.

Concerns related to security and intellectual property rights are expected to restrain the growth of the market in the forecast period. The urge to reduce operational price lands the outsourcer in countries that do not have an established regulatory framework that is responsible for protecting the outsourcer from breach of confidentiality and violation of intellectual property rights. As a result, outsourcing companies are often concerned with the way they outsource and handle the information shared and are observed to be reluctant as even a small error can result in a permanent setback with respect to the company’s market position. Additionally, the rising of government initiatives implemented to promote the adoption of cloud technology in the outsourcing sector is anticipated to the growth of the BPO market.

Business Process Outsourcing Market Segmentations: