ICT-IOT

Business Process Outsourcing Market is Expected to Reach USD 715.53 Billion by 2031

Apr 2024

ICT-IOT

As per the report published by Kings Research, the global Business Process Outsourcing Market was valued at USD 351.48 billion in 2023 and is projected to reach USD 715.53 billion by 2031, growing at a CAGR of 9.44% from 2024 to 2031.

The development and emergence of next-generation services are reshaping the landscape of the business process outsourcing (BPO) market. Next-generation services encompass a wide range of advanced offerings that leverage cutting-edge technologies and innovative solutions to deliver enhanced value to businesses. In addition to traditional BPO functions, these services incorporate elements such as artificial intelligence (AI), robotic process automation (RPA), data analytics, and cloud computing.

As businesses aim to stay ahead in a rapidly evolving digital economy, the demand for next-generation BPO services is on the rise. These services enable companies to streamline operations, improve efficiency, and drive innovation in areas such as customer experience, supply chain management, finance and accounting, and human resources. Additionally, next-generation services empower businesses to adapt to changing market dynamics, enhance agility, and gain a competitive edge. The development and emergence of next-generation services represent a significant opportunity for BPO providers to deliver value-added solutions that meet the evolving needs of their clients and drive growth in the market.

Key Insights

  • Based on the type, the offshore segment is expected to register the highest CAGR of 10.22% through the review period
  • Based on service, the customer service segment led the market with a valuation of USD 86.78 billion in 2023
  • By end-use, the IT & telecommunications segment is anticipated to witness the highest CAGR of 11.61% over the forecast period
  • On the basis of region, Asia Pacific is projected to emerge as the fastest growing region with a CAGR of 9.86% over the estimated timeframe

CBRE Group Acquires Arlington Capital Partners to Support Operations

February 2024: CBRE Group and Arlington Capital Partners finalized CBRE's acquisition of J&J Worldwide Services, a premier provider of engineering services, base support operations, and facilities maintenance for the U.S. federal government. Arlington Capital Partners is a Washington, D.C.-area private investment firm specializing in government-regulated industries.

Increasing Investments into Robotic Process Automation to Offer Lucrative Opportunities for Business Process Outsourcing Market Growth

The business process outsourcing (BPO) market is witnessing a surge in investments in robotic process automation (RPA), thereby creating potential opportunities for both providers and clients. RPA involves the use of software robots to automate repetitive tasks and streamline business processes, leading to increased efficiency and cost savings. As businesses across various industries prioritize digital transformation and strive to optimize operations, the demand for RPA solutions is rising. BPO providers are capitalizing on this trend by integrating RPA into their service offerings, enabling clients to automate routine tasks and free up human resources for more strategic activities. By leveraging RPA, businesses can achieve faster turnaround times, higher accuracy, and improved productivity, thereby supporting innovation and growth of the BPO market. Increasing investments into RPA presents significant opportunities for BPO providers to differentiate themselves, deliver added value to their clients, and drive operational excellence.

Rising Integration of Advanced Technologies to Drive Business Process Outsourcing Market Expansion

The integration of advanced technologies such as artificial intelligence (AI) and the Internet of Things (IoT) is driving productivity in the market. These technologies enable BPO providers to deliver more intelligent, automated, and personalized solutions to their clients, thereby driving efficiency and value creation. AI-powered algorithms analyze vast amounts of data to uncover valuable insights and optimize business processes. IoT devices gather real-time data from connected devices and sensors, facilitating proactive maintenance and predictive analytics. By integrating AI and IoT into their service offerings, BPO providers can offer enhanced capabilities such as predictive maintenance, personalized customer experiences, and real-time insights for decision-making. These advanced technologies empower businesses to streamline operations, improve productivity, and drive innovation across various industries. The rising integration of advanced technologies represents a significant factor fueling the growth of the BPO market, enabling providers to deliver innovative solutions that meet the evolving needs of their clients and differentiate themselves in the competitive landscape.

Asia Pacific to Register the Highest CAGR of 9.86% Over 2024-2031

Asia Pacific is likely to experience significant growth in the business process outsourcing market over the review period. The region's rapid growth is driven by several factors including technological advancements, increasing digitalization, and a large pool of skilled talent. As businesses in Asia-Pacific strive to improve operational efficiency, reduce costs, and gain a competitive edge, they are increasingly turning to BPO solutions to streamline their operations and access specialized expertise.

Additionally, favorable government policies, infrastructure development, and a growing startup ecosystem are fueling the growth of the BPO market in the region. With its dynamic business environment and growing demand for outsourcing services, Asia-Pacific presents significant opportunities for BPO providers to expand their presence in the market.

Market Players Concentrating on Innovative Product Launches to Drive Market Development

The global business process outsourcing market is fragmented with key players such as Accenture, Amdocs, TATA Consultancy Services Limited, Capgemini, CBRE, Cognizant, Mphasis, Genpact, Infosys Limited, IBM Corporation, SODEXO, Teleperformance SE, TTEC, Wipro, and others. Companies are employing a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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