Market Size of Business Processing Outsourcing Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 8.50 % |
| Fastest Growing Market | South East Asia |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Business Process Outsourcing Market Analysis
Business process outsourcing has become incredibly popular with companies ranging from Fortune 500s to startups over the last two decades. Businesses in every industry can now outsource non-core processes while applying more resources to core business functions. Business process outsourcing is a subset of outsourcing that involves contracting third-party service providers for various business-related operations and responsibilities. While manufacturers initially used BPO, pretty much every industry you can think of around the world now uses it as part of their business models. Businesses across all industries have adopted BPO because business process outsourcing solutions provide an array of opportunities for cost reduction and business growth. Business process outsourcing services (including payroll, accounting, data analytics outsourcing) make it easier for businesses to dedicate their time and resources to core business and office operations. BPO also enables businesses to react faster to changing market dynamics by adapting their processes as the market changes.
Global BPO firms are increasingly benefiting from growing complexities in the supply chains, which create a trend wherein companies are looking toward third-party firms for outsourcing their operations. Automation will continue to be a significant threat to low skilled jobs in the BPO sector. Many of the major outsourcing companies intend to make major investments into robotic automation in the coming years. APAC continues to be a vibrant market for the business process outsourcing (BPO) space. The market is primarily driven by the increasing number of global companies expanding their base in the region and partnering with agile business partners to provide them with the required services.
The North America business process outsourcing market accounted for a significant portion of the global market. Growth in the regional market is accredited to flexibility and customization of service offerings in order to better meet individual needs, coupled with an increasing demand for cloud computing technology. However, some of the Asian countries like India and Philippines have shown strong growth in the recent years.
Growing competitiveness from new outsourcing destinations, coupled with the pressure on businesses to run cost-efficiently, will be the driving forces behind the accelerated growth in the BPO industry. Automation will continue to be a significant threat to low skilled jobs in the BPO sector. Many of the major outsourcing companies intend to make major investments in robotic automation in the coming years. The advantages of BPO include cost-efficiency, higher flexibility, better quality and performance, competitive advantage, etc. Outsourced service providers can complete business processes at lower costs because of economies of scale, specialized processes, low-cost countries, etc. Outsourcing non-critical functions allow organizations to use their internal resources for core competencies and essential business functions. BPO also enables businesses to react faster to changing market dynamics by adapting their processes as the market changes.
