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

The U.S. business process outsourcing market was surpassed at USD 70.69 billion in 2022 and is expected to hit around USD 169.51 billion by 2032, growing at a CAGR of 9.14% from 2023 to 2032.

Key Pointers

• The finance & accounting segment of the U.S. business process outsourcing occupied more than 20.06% of the revenue share in 2022. 
• The HR segment is projected to witness a CAGR of more than 9.03% over the forecast period. 
• By end-use, the IT & telecommunication segment occupied the largest share in the U.S. business process outsourcing market with more than 30.08% in 2022.
• The BFSI segment is projected to witness the highest CAGR from 2023 to 2032.

Report Scope of the U.S. Business Process Outsourcing Market

The Business Process Outsourcing (BPO) industry is expanding due to innovations, increasing global competitive rivalry, and advanced technologies. BPO has provided companies with the capabilities to increase profits effectively and reduce costs. The advantages of cutting-edge technology, such as process automation, cloud computing, and social networking, encourage businesses to adopt new technologies. BPOs can further increase the efficiency of the services offered by businesses by leveraging the benefits of the growing adoption of these technologies.

The U.S. outsourcing service providers are expected to use technological advancements effectively to manage talent shortages, improve products and services, and resolve market issues while maintaining low operating costs. New technologies such as robotic process automation (RPA) have significantly impacted the BPO sector. RPA rapidly penetrates all corporate processes and industries owing to its benefits, such as increased cost savings, speed, and efficiency. In the management sector, robotic process automation has emerged as a BPO trend with the fastest growth rate, providing the higher generation with accelerated time-to-value and sizable cost reductions.

The customer service industry depended on websites and Interactive Voice Responses (IVR) to pass calls to the appropriate representative. However, most people have at least one social media account, which has led to a significant change in consumer behavior. Most people identify social media browsing as the third-most-popular online activity. Businesses are becoming aware of the popularity of social media, which offers consumer data and inputs that can improve a company's capacity for trend analysis and innovation.

Organizations have different types of processes across various business operations. These processes may primarily need a system-to-system exchange, human interaction, alteration of information, and creation of documents, or necessitate arrival at a significant decision. Additionally, processes can be categorized as simple or complex based on a limited or considerable number of transactions. Sales campaigns are time-consuming and may take several months, or years, whereas other processes might take less than a second to complete.

Processes may also be categorized as highly structured with repetitive tasks or unstructured, where the workflow can be identified during execution. The diversity of these processes has conventionally compelled enterprises to utilize multiple process management systems, which focus on handling a subgroup of these process types. This consequently increases the complexity of the system. However, efficiency may be achieved in a few processes, but complete efficiency and agility still need to be challenged due to the barriers imposed by a point process solution.

Services Insights

The finance & accounting segment of the U.S. business process outsourcing occupied more than 20.06% of the revenue share in 2022. The growth can be attributed to finance & accounting outsourcing trends such as automation & AI, cloud technology, and remote work. Accounting professionals can minimize additional time by using AI and automation to automate time-consuming, manual tasks. This will allow them to focus on more valuable tasks such as analyzing data trends, building relationships with clients and other departments, and in 2021, assisting businesses with reporting compliance.

The HR segment is projected to witness a CAGR of more than 9.03% over the forecast period. The growth of the segment can be attributed to cost savings, reduced legal complexities, and prevent overworking of employees. Furthermore, many organizations focus on outsourcing specific human resources activities, such as recruitment, salary surveys, job evaluation, and tax administration and payroll. Moreover, top companies such as Genpact, and IBM Corporation, offering HR outsourcing services have also contributed to the wider adoption of HR outsourcing services, driving this growth.

End-use Insights

By end-use, the IT & telecommunication segment occupied the largest share in the U.S. business process outsourcing market with more than 30.08% in 2022. Moreover, the IT & Telecommunication segment is projected to witness a growth rate of more than 9% over the forecast period. The increase in the number of IT businesses and rapid industrialization globally are factors boosting the demand for business process services across IT and telecommunication companies. IT & telecom BPO services cater to the increasing demand for connectivity, address security issues, and innovate new offerings for the latest devices and technology standards.

Telecom companies outsource business functions, ranging from call-center outsourcing to billing operations to finance and accounting. Outsourcing enables telecom companies to reduce their capital expenses, access specialized resources, optimize current investments, create a flexible strategy for acquiring and retaining more customers, and manage cost pressures.

The BFSI segment is projected to witness the highest CAGR from 2023 to 2032. The growth of the BFSI segment can be attributed to the initiatives taken by BFSI institutions to improve their cost efficiency. BFSI institutions opt for outsourcing processes for various BFSI domains, including investment and asset management, to stay ahead in market competition.

Moreover, major financial institutions, such as JPMorgan Chase & Co., Morgan Stanley, and American Bank, N.A., along with the presence of top companies in the U.S., the business process outsourcing market, which includes Genpact, IBM Corporation, and Helpware, has also contributed to the growth of the BFSI segment.

U.S. Business Process Outsourcing Market Segmentations:

By Service 

• Finance & Accounting
  • Order-to-Cash
  • Procure-to-Pay
  • Record-to-Report
  • Source-to-Pay
  • Multi Processed
• HR
  • Payroll
  • HR Consulting
  • Administrative Services Organization (ASO)
  • Recruitment
  • Performance Management
  • Others
• KPO
• Procurement & Supply Chain
• Customer Services
• Fund Administration Business
• Others

By End-use 

• BFSI
• Healthcare
• Manufacturing
• IT & Telecommunications
• Retail
• Others