Business Process Outsourcing (BPO) Market Size Worth $316.43 Billion in 2021 with the Highest Contribution from the BFSI Vertical

Business Process Outsourcing (BPO) Market Size Worth $316.43 Billion in 2021 with the Highest Contribution from the BFSI Vertical - GlobalData Plc

iCrowd Newswire
21 Mar 2023, 00:02 GMT+10

The global business process outsourcing (BPO) market size reached $316.43 billion in 2021, according to a new report by GlobalData Plc. The BPO market is driven by the increasing demand for outsourcing various business functions, including human resources, IT services, finance and accounting, customer services, supply chain, market research, data conversion, data entry, marketing, and sales, among others. Outsourcing of front and back-office functions enables businesses to focus on core competencies while also improving business agility and minimizing operational costs. This helps in streamlining business operations and enhances the efficiency and productivity of internal processes.

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Business Process Outsourcing (BPO) Market FAQs

What was the Business Process Outsourcing (BPO) market size in 2021?
The Business Process Outsourcing (BPO) market size was $316.43 billion in 2021.

What will be the Business Process Outsourcing (BPO) market growth during 2022-2026?
The Business Process Outsourcing (BPO) market is expected to grow at a CAGR of 5.0% during 2022-2026.

What are the key segments of Business Process Outsourcing (BPO) market?
The Business Process Outsourcing (BPO) market is segmented by service, enterprise size, vertical, and region.

Which region accounted for the highest Business Process Outsourcing (BPO) market growth in 2021?
Asia-Pacific accounted for the highest regional growth in Business Process Outsourcing (BPO) market.

Who are the key Business Process Outsourcing (BPO) market players?
Accenture Plc, AON Plc, Capita Plc, Conduent Plc, Genpact Ltd, Randstad NV, Serco Inc, Sitel Worldwide Corp, Tata Consultancy Services Ltd, and Teleperformance SE are some of the key market players.

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Business Process Outsourcing (BPO) Market Dynamics

The COVID-19 pandemic compelled several BPO companies to adopt remote working practices to oversee social distancing norms. The BPO industry embraced the remote working style seamlessly with business continuity plans in place and the introduction of enhanced processes to support employees working from home. Additionally, the adoption of technology by BPO companies in the past two years has helped them stay afloat and generate a positive outcome amid the pandemic crisis.

Speaking of technology, BPO companies are reinventing themselves with the introduction of robotic process automation, machine learning, and artificial intelligence applications in business operations. The implementation of voice recognition, live chat support services, and chatbots has helped BPO staff reduce the time spent on repetitive and tedious tasks, allowing them to focus on developing skills in other areas. As such, BPO companies are focused on upskilling their employees and identifying specialized service areas to enhance service offerings, which is anticipated to create more opportunities for market growth.

However, several factors such as stringent data security regulations, lack of niche expertise, in-house process automation, and increased emotions of trade protectionism might emerge as the key impediments to the business process outsourcing (BPO) market's growth in the projected period.

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Business Process Outsourcing (BPO) Market Report Highlights

The global BPO market is projected to witness a CAGR of 5.0% from 2022 to 2026. The increasing focus of end-use industries on enhancing core business processes while gaining access to new technology and a skilled workforce at low cost has increased the demand for outsourcing services.

The human resources (HR) segment accounted for more than 20% share of the overall BPO market in 2021. Several activities related to human resources are back-office, which businesses prefer to outsource owing to the repetitive nature and people-intensive operations. This has contributed to the high adoption of BPO services in the HR segment.

BPO services started gaining popularity among micro and small enterprises due to the limited budget of these companies. Outsourcing of operations introduces small enterprises to a skilled workforce and innovative processes, which helps them stay competitive in the market.

The demand for BPO services in the BFSI vertical accounted for a sizeable market share. The revenue opportunity generated by BFSI in this space is projected to surpass US$ 50 billion by 2026 at an approximate CAGR of 5% from 2022 to 2026.

The Asia Pacific is one of the leading destinations for BPO services accounting for more than 20% of the overall market in 2021. Low-cost office spaces, taxes, and skilled labor with relatively low remuneration are some factors that have contributed to the growth of this region.

Key players in the BPO market analyzed as part of this report are Accenture Plc, AON Plc, Automatic Data Processing Inc, Capita Plc, Concentrix Corp, Conduent Inc, Genpact Ltd, Randstad NV, Serco Inc, Sitel Worldwide Corp, Tata Consultancy Services Ltd, Teleperformance SE, among others.

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Business Process Outsourcing (BPO) Market Scope

GlobalData Plc has segmented the BPO market report by service, enterprise size, vertical, and region:

Business Process Outsourcing (BPO) Service Outlook (Revenue, USD Million, 2021-2026)

Customer Relationship Management (CRM)

Finance and Accounting

Human Resources BPO

Knowledge Process Outsourcing (KPO)

Procurement and Supply-Chain

Vertical-specific BPO

Business Process Outsourcing (BPO) Enterprise Size Outlook (Revenue, USD Million, 2021-2026)

Micro (Less than 50)

Small (51-250)

Medium (251-1000)

Large (1001-4999)

Very Large (5000+)

Business Process Outsourcing (BPO) Vertical Outlook (Revenue, USD Million, 2021-2026)

IT and Telecom

BFSI

Healthcare & Pharmaceuticals

Education

Government

Manufacturing

Retail

Energy & Utilities

Others

Business Process Outsourcing (BPO) Regional Outlook (Revenue, USD Million, 2021-2026)

North America

- The US
- Canada
- Mexico

Western Europe

- The UK
- Germany
- France
- The Netherlands
- Italy
- Spain
- Poland
- Hungary
- Romania
- Rest of Europe

Central & Eastern Europe

Asia Pacific

- China
- India
- Japan
- South Korea
- Australia
- Singapore
- The Philippines
- Malaysia
- Indonesia
- Thailand
- Rest of Asia Pacific

Central & South America

- Brazil
- Argentina
- Rest of Central & South America

Middle East & Africa

- Saudi Arabia
- South Africa
- United Arab Emirates (UAE)
- Rest of Middle East & Africa

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