Knowledge Process Outsourcing Market Size & Share Analysis, 2025-2030

Name: Knowledge Process Outsourcing Market Size & Share Analysis, 2025-2030
Creator: Mordor Intelligence
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Knowledge Process Outsourcing (KPO) Market Size and Share

Market Overview

Study Period	2019 - 2030
Market Size (2025)	USD 87.98 Billion
Market Size (2030)	USD 211.07 Billion
Growth Rate (2025 - 2030)	19.10% CAGR
Fastest Growing Market	Asia Pacific
Largest Market	North America
Market Concentration	Medium
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Knowledge Process Outsourcing (KPO) Market Summary — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Knowledge Process Outsourcing (KPO) Market Analysis by Mordor Intelligence

The knowledge process outsourcing market size reached USD 87.98 billion in 2025 and is forecast to advance to USD 211.07 billion by 2030, reflecting a 19.1% CAGR. Surging demand for high-value analytics, heightened regulatory scrutiny, and the need to bridge global talent gaps are shifting outsourcing from a cost-savings tactic to a strategic partnership model. Enterprises now insist on domain expertise and real-time insight generation, encouraging providers to combine data science, industry knowledge, and regulatory fluency. Technology adoption—especially generative AI, robotic process automation, and low-code orchestration—raises service speed and breadth, while geopolitical risk and data-sovereignty rules push clients toward more diversified delivery footprints within the knowledge process outsourcing market. Competitive differentiation hinges on proprietary AI tools, outcome-based pricing, and the ability to safeguard sensitive data in complex regulatory environments.

Key Report Takeaways

By service type, Data Analytics and Market Intelligence held 29.0% of the knowledge process outsourcing market share in 2024, whereas Supply-Chain and Operations Analytics is projected to expand at a 19.5% CAGR through 2030.
By end-user industry, BFSI commanded 32.5% of the knowledge process outsourcing market share in 2024, while Manufacturing and Industrial applications are set to grow the fastest at a 19.8% CAGR to 2030.
By delivery model, offshore centers retained 72.0% revenue share in 2024; nearshore operations record the strongest momentum with a 20.2% CAGR expected through 2030.
By organization size, large enterprises captured 61.3% of 2024 revenues, yet SME adoption is expanding at a 20.4% CAGR to 2030, supported by AI-enabled service platforms.

Global Knowledge Process Outsourcing (KPO) Market Trends and Insights

Drivers Impact Analysis

Driver	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Growing demand for data-driven decision-making	+4.2%	Global, centered in North America and Europe	Medium term (2-4 years)
Cost optimisation via offshore specialised talent	+3.8%	Global, with APAC delivery hubs	Short term (≤ 2 years)
Digital transformation and AI/RPA enablement	+3.5%	Global, led by developed markets	Medium term (2-4 years)
Regulatory-driven outsourcing (ESG, AML, Basel IV)	+2.9%	North America and Europe, spreading to APAC	Long term (≥ 4 years)
Talent shortages in niche domains in OECD	+2.4%	OECD markets	Long term (≥ 4 years)
Rise of decentralised gig-based knowledge platforms	+1.8%	Global tech-forward economies	Medium term (2-4 years)
Source: Mordor Intelligence

Growing Demand for Data-Driven Decision-Making

Enterprises see advanced analytics as vital to competitive positioning, driving sustained expansion of the knowledge process outsourcing market. Internal teams often lack capacity to manage streaming IoT feeds, social-media sentiment, and unstructured enterprise content. KPO partners now supply predictive modelling, algorithm governance, and scenario planning expertise, meeting rising oversight expectations from regulators that require data-backed risk assessments^{[1]Central Bank of Ireland, “Regulatory & Supervisory Outlook Report 2025,” centralbank.ie}. Generative AI supplements, rather than replaces, human analysts, who are needed to validate models, fine-tune prompts, and curate training data.

Cost Optimisation via Offshore Specialised Talent

Labor-arbitrage remains relevant, yet has evolved to emphasize access to hard-to-find talent in quantitative finance, actuarial science, and advanced analytics. Mature hubs in India and the Philippines provide large pools of credentialed professionals, while emerging Eastern European centers add language proximity for EU clients. Value is now proven through solution quality and speed, not merely wage gaps, prompting hybrid pricing that rewards outcome delivery^{[2]Asia Business Council, “India’s Path Forward,” asiabusinesscouncil.org}.

Digital Transformation and AI/RPA Enablement

Generative AI, natural-language search, and task-orchestrating bots allow providers to process larger datasets while freeing analysts for interpretive work. New service lines include model-prompt engineering, bias detection, and AI governance audits. Leaders embed proprietary co-pilot tools into workflows to lift analyst productivity while maintaining human oversight.

Regulatory-Driven Outsourcing (ESG, AML, Basel IV)

Heightened enforcement and expanding disclosure mandates encourage banks, insurers, and corporates to seek domain specialists who can capture, cleanse, and interpret granular risk and ESG data. ESG attestation, AML network analytics, and Basel IV capital modelling create sticky, high-margin engagements that anchor long-term provider revenues.

Restraints Impact Analysis

Restraint	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Data security and IP-protection concerns	-2.8%	Global, acute in regulated sectors	Short term (≤ 2 years)
Margin pressure from intense competition	-2.1%	Global, in commoditised tasks	Medium term (2-4 years)
On-shoring push due to data-sovereignty laws	-1.9%	Europe and North America	Long term (≥ 4 years)
Automation cannibalising low-end KPO revenues	-1.6%	Global	Medium term (2-4 years)
Source: Mordor Intelligence

Data Security and IP-Protection Concerns

High-profile breaches elevate board-level scrutiny of third-party analytics partners. GDPR, CCPA, and emerging localisation statutes add contractual complexity and require on-premises or private-cloud deployment models. Providers invest in zero-trust architectures and industry-specific certifications to reassure clients.

Margin Pressure from Intense Competition

Commoditisation in basic research and reporting squeezes pricing. AI-native start-ups push rapid-turnaround offerings, forcing incumbents to reposition around deeper domain expertise and outcome-linked contracts that protect margins.

Segment Analysis

By Service: Analytics Dominance Shifts Toward Operations Intelligence

Supply-chain visibility demands and omnichannel fulfilment complexity are driving the fastest growth in operations analytics, which is projected to rise at a 19.5% CAGR and thereby expand its weight within the knowledge process outsourcing market. Data Analytics and Market Intelligence remains the largest slice at 29.0% of 2024 revenue, reflecting entrenched enterprise dependence on external market sensing and BI platforms.

Providers are layering generative AI onto existing research workflows to speed insight generation while pushing up the value curve to simulation, digital-twin modelling, and prescriptive optimisation. Engineering design services also gain traction as manufacturers co-create products with globally distributed research and development hubs. Meanwhile, content outsourcing faces low-end displacement from automated text generators, reinforcing a pivot toward specialised editorial and thought-leadership roles that require nuanced domain interpretation within the knowledge process outsourcing market.

Knowledge Process Outsourcing (KPO) Market — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

By End-User Industry: Manufacturing Acceleration Challenges BFSI Leadership

BFSI leads with 32.5% of 2024 revenue, anchored by risk analytics and regulatory reporting that clients seldom bring fully in-house. Yet manufacturing-sector engagements are expanding at a 19.8% CAGR as factories digitise production, adopt predictive maintenance, and pursue resilient sourcing. This momentum increases the sector’s contribution to the knowledge process outsourcing market size while balancing industry concentration.

Retailers and e-commerce firms outsource customer-journey analytics and demand forecasting to refine merchandising and reduce stockouts. Healthcare and life-sciences companies rely on specialist providers for pharmacovigilance and real-world-evidence studies that inform value-based care models. Collectively, these verticals diversify the knowledge process outsourcing industry and lessen dependence on financial-services spending.

By Delivery Model: Nearshore Momentum Challenges Offshore Dominance

Although offshore hubs still captured 72.0% of 2024 spend, nearshore locations in Latin America and Eastern Europe are growing at 20.2% CAGR as clients seek time-zone overlap and improved data-sovereignty alignment. Hybrid models mix offshore cost advantages with nearshore collaboration and onshore oversight, letting clients assign workloads by sensitivity and required responsiveness.

Providers continue upgrading physical and cyber-security controls across multi-shore campuses, ensuring that proximity benefits do not undermine the cost-efficiency that historically defined the knowledge process outsourcing market. Those capable of orchestrating seamless multi-site delivery earn premium positioning with highly regulated clients.

By Organization Size: SME Adoption Accelerates Through AI-Enabled Platforms

Large enterprises contributed 61.3% of 2024 revenue, but AI-driven, self-service portals are lowering entry thresholds, allowing SMEs to tap modular analytics and compliance services at a 20.4% CAGR. Flexible subscription terms and outcome-based pricing resonate with mid-market CFOs looking to convert fixed analytics headcount into variable costs within the knowledge process outsourcing market.

Providers that productise repeatable service modules, such as sales-pipeline diagnostics or ESG data reconciliation, secure scale without excessive customisation. This evolution expands addressable demand and underscores how automation democratises sophisticated knowledge work beyond the enterprise tier of the knowledge process outsourcing industry.

Geography Analysis

North America held 41.2% of worldwide revenue in 2024, with United States banks, insurers, and healthcare networks relying on third-party specialists for model risk management, clinical analytics, and real-time fraud detection. Canada complements demand with energy-sector outsourcing for asset-integrity assessment and carbon accounting. Mexico rises as a nearshore delivery hub, benefiting from USMCA provisions and cultural affinity.

Asia-Pacific is the fastest-growing region at a 20.1% CAGR, underpinned by India’s mature talent pools and policy support for AI-enabled services. The region not only supplies cost-efficient capacity but also generates rising domestic demand from Chinese conglomerates and ASEAN manufacturers pursuing sophisticated analytics. Governments in Vietnam and Malaysia invest in STEM training and 5G infrastructure, further propelling the knowledge process outsourcing market.

Europe expands steadily as GDPR compliance, ESG reporting, and Basel IV readiness steer clients toward regional providers. Germany and the United Kingdom generate sizeable engagements, while Poland and Romania scale delivery centres for actuarial and multi-lingual analytics. In the Middle East, UAE and Saudi Arabia channel sovereign funds into AI research zones that double as regional KPO hubs, whereas South Africa frames itself as a springboard for Anglophone Africa, adding geographic diversity to the knowledge process outsourcing market.

Competitive Landscape

The knowledge process outsourcing market shows moderate concentration. Global IT-services majors such as Accenture, TCS, and Infosys accelerate deal activity, acquiring AI boutiques that boost domain depth in climate-risk modelling, drug discovery analytics, and marketing science. Private-equity interest rises as recurring, compliance-driven revenue streams promise stable cash flows; there were 857 KPO-related merger and acquisition transactions worth USD 32.2 billion in 2024^{[3]Siemens AG, “Siemens Expands U.S. Manufacturing Footprint with USD 10 Billion Investment,” siemens.com}.

Strategic differentiation rests on proprietary AI co-pilots, sector-specific data models, and value-sharing contracts that link provider income to business outcomes. Smaller specialists defend niches through deep expertise—for example, ESG scoring frameworks or anti-fraud graph analytics—often partnering with cloud hyperscalers for scale.

Investment priorities include zero-trust security, prompt-engineering academies, and certifications covering AML, pharmacovigilance, and aerospace compliance. As automation absorbs routine tasks, human analysts focus on storytelling, causal inference, and regulator engagement, reinforcing the symbiotic AI-plus-expertise model that defines leadership in the knowledge process outsourcing market.

Knowledge Process Outsourcing (KPO) Industry Leaders

WNS Global Services
Genpact Limited
International Business Machines Corporation
Wipro Limited
Infosys Limited
*Disclaimer: Major Players sorted in no particular order

Knowledge Process Outsourcing (KPO) Market Concentration — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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Recent Industry Developments

May 2025: Siemens announced USD 10 billion of US manufacturing investments to expand AI-powered design and simulation services following its Altair acquisition.
May 2025: Siemens introduced Industrial Copilot AI agents that demonstrated 50% productivity gains across automation tasks.
March 2025: India’s TCS, Infosys, Wipro, and HCLTech disclosed plans to hire 70,000 graduates in FY26 to meet escalating AI and digital-transformation demand.
February 2025: The Central Bank of Ireland’s Supervisory Outlook underscored stricter oversight of AI use and third-party dependencies in financial services.
January 2025: Baker McKenzie outlined 2025 compliance milestones, including the Designated Activities Regime and tighter third-party risk governance that affect KPO contracts.

Table of Contents for Knowledge Process Outsourcing (KPO) Industry Report

1. INTRODUCTION

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Growing demand for data-driven decision-making
- 4.2.2 Cost optimisation via offshore specialised talent
- 4.2.3 Digital transformation and AI/RPA enablement
- 4.2.4 Regulatory-driven outsourcing (ESG, AML, Basel IV)
- 4.2.5 Talent shortages in niche domains in OECD
- 4.2.6 Rise of decentralised gig-based knowledge platforms
4.3 Market Restraints
- 4.3.1 Data security and IP-protection concerns
- 4.3.2 Margin pressure from intense competition
- 4.3.3 On-shoring push due to data-sovereignty laws
- 4.3.4 Automation cannibalising low-end KPO revenues
4.4 Value / Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces Analysis
- 4.7.1 Threat of New Entrants
- 4.7.2 Bargaining Power of Suppliers
- 4.7.3 Bargaining Power of Buyers
- 4.7.4 Threat of Substitutes
- 4.7.5 Competitive Rivalry
4.8 Assessment of the Impact of Macroeconomic Trends on the Market

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Service
- 5.1.1 Data Analytics and Market Intelligence
- 5.1.2 Supply-Chain and Operations Analytics
- 5.1.3 Engineering and Product Design
- 5.1.4 Equity, Investment and Risk Research
- 5.1.5 Content and Publishing Outsourcing
- 5.1.6 Research and Development Outsourcing
- 5.1.7 Other Niche Services (IP, Legal, Actuarial)
5.2 By End-user Industry
- 5.2.1 IT and Telecom
- 5.2.2 BFSI
- 5.2.3 Retail and E-commerce
- 5.2.4 Manufacturing and Industrial
- 5.2.5 Healthcare and Life Sciences
- 5.2.6 Others (Energy, Media, Education)
5.3 By Delivery Model
- 5.3.1 Offshore
- 5.3.2 Nearshore
- 5.3.3 Onshore
- 5.3.4 Hybrid
5.4 By Organization Size
- 5.4.1 Large Enterprises
- 5.4.2 Small and Medium-Sized Enterprises (SMEs)
5.5 By Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 Europe
- 5.5.2.1 Germany
- 5.5.2.2 United Kingdom
- 5.5.2.3 France
- 5.5.2.4 Italy
- 5.5.2.5 Spain
- 5.5.2.6 Russia
- 5.5.2.7 Rest of Europe
- 5.5.3 Asia-Pacific
- 5.5.3.1 China
- 5.5.3.2 India
- 5.5.3.3 Japan
- 5.5.3.4 South Korea
- 5.5.3.5 ASEAN
- 5.5.3.6 Rest of Asia-Pacific
- 5.5.4 South America
- 5.5.4.1 Brazil
- 5.5.4.2 Argentina
- 5.5.4.3 Rest of South America
- 5.5.5 Middle East and Africa
- 5.5.5.1 Middle East
- 5.5.5.1.1 United Arab Emirates
- 5.5.5.1.2 Saudi Arabia
- 5.5.5.1.3 Turkey
- 5.5.5.1.4 Rest of Middle East
- 5.5.5.2 Africa
- 5.5.5.2.1 South Africa
- 5.5.5.2.2 Nigeria
- 5.5.5.2.3 Rest of Africa

6. COMPETITIVE LANDSCAPE

6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
- 6.4.1 Accenture plc
- 6.4.2 WNS Global Services
- 6.4.3 Genpact Ltd
- 6.4.4 Tata Consultancy Services
- 6.4.5 Infosys Ltd
- 6.4.6 Wipro Ltd
- 6.4.7 Cognizant Technology Solutions
- 6.4.8 International Business Machines (IBM)
- 6.4.9 EXL Service Holdings
- 6.4.10 HCLTech
- 6.4.11 Capgemini SE
- 6.4.12 Moody's Analytics
- 6.4.13 Evalueserve
- 6.4.14 Mu Sigma
- 6.4.15 Sutherland Global
- 6.4.16 Aptara Inc
- 6.4.17 Concentrix Corporation
- 6.4.18 Magellan Solutions
- 6.4.19 Corpshore Solutions
- 6.4.20 Ugam (A Merkle Company)

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

7.1 White-Space and Unmet-Need Assessment

***In the final report, Asia, Australia, and New Zealand will be studied together as 'Asia Pacific'

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Global Knowledge Process Outsourcing (KPO) Market Report Scope

Knowledge process outsourcing (KPO) is the outsourcing of core, information-related business activities. KPO involves contracting out work to individuals who typically have advanced degrees and expertise in a specialized area.

The knowledge process outsourcing (KPO) market is segmented by service (analytics & market research, operations & supply analytics, engineering & design, financial process outsourcing, publishing outsourcing, research & development outsourcing, other services), by end-users (IT and telecom, BFSI, retail, manufacturing, healthcare, other end-users), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Service	Data Analytics and Market Intelligence
	Supply-Chain and Operations Analytics
	Engineering and Product Design
	Equity, Investment and Risk Research
	Content and Publishing Outsourcing
	Research and Development Outsourcing
	Other Niche Services (IP, Legal, Actuarial)
By End-user Industry	IT and Telecom
	BFSI
	Retail and E-commerce
	Manufacturing and Industrial
	Healthcare and Life Sciences
	Others (Energy, Media, Education)
By Delivery Model	Offshore
	Nearshore
	Onshore
	Hybrid
By Organization Size	Large Enterprises
	Small and Medium-Sized Enterprises (SMEs)

By Geography	North America	United States
		Canada
		Mexico

	Europe	Germany
		United Kingdom
		France
		Italy
		Spain
		Russia
		Rest of Europe

	Asia-Pacific	China
		India
		Japan
		South Korea
		ASEAN
		Rest of Asia-Pacific

	South America	Brazil
		Argentina
		Rest of South America

	Middle East and Africa	Middle East	United Arab Emirates
			Saudi Arabia
			Turkey
			Rest of Middle East

		Africa	South Africa
			Nigeria
			Rest of Africa

By Service

Data Analytics and Market Intelligence

Supply-Chain and Operations Analytics

Engineering and Product Design

Equity, Investment and Risk Research

Content and Publishing Outsourcing

Research and Development Outsourcing

Other Niche Services (IP, Legal, Actuarial)

By End-user Industry

IT and Telecom

BFSI

Retail and E-commerce

Manufacturing and Industrial

Healthcare and Life Sciences

Others (Energy, Media, Education)

By Delivery Model

Offshore

Nearshore

Onshore

Hybrid

By Organization Size

Large Enterprises

Small and Medium-Sized Enterprises (SMEs)

By Geography

North America	United States
	Canada
	Mexico
Europe	Germany
	United Kingdom
	France
	Italy
	Spain
	Russia
	Rest of Europe
Asia-Pacific	China
	India
	Japan
	South Korea
	ASEAN
	Rest of Asia-Pacific
South America	Brazil
	Argentina
	Rest of South America

Middle East and Africa	Middle East	United Arab Emirates
		Saudi Arabia
		Turkey
		Rest of Middle East

	Africa	South Africa
		Nigeria
		Rest of Africa

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Key Questions Answered in the Report

What is the current size of the knowledge process outsourcing market?

The knowledge process outsourcing market size reached USD 87.98 billion in 2025 and is projected to hit USD 211.07 billion by 2030.

Which service segment is growing the fastest?

Supply-Chain and Operations Analytics is the fastest-growing service line, expected to expand at a 19.5% CAGR through 2030.

Why is nearshore delivery gaining traction?

Nearshoring offers time-zone alignment, stronger data-sovereignty compliance, and geopolitical risk mitigation while retaining many cost benefits of traditional offshore models.

How is AI affecting KPO providers?

Generative AI and RPA automate low-complexity tasks, boost analyst productivity, and create new service categories such as model governance and prompt engineering.

Which industries contribute most to KPO demand?

BFSI leads with 32.5% of 2024 revenue, followed by fast-rising Manufacturing & Industrial clients that require supply-chain and operational analytics.

What security measures do top KPO providers adopt?

Market leaders implement zero-trust architectures, secure private-cloud environments, and obtain sector-specific certifications to meet stringent data-protection requirements.

Page last updated on: June 12, 2025