Business Process Outsourcing Market Size, Share & Trends Analysis Report By Service Type (Customer Services, Finance & Accounting), By Outsourcing Type, By Deployment, By End-use (IT & Telecommunication, BFSI), By Region, And Segment Forecasts, 2024 - 2030

Research Methodology

A three-pronged approach was followed for deducing the business process outsourcing market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for business process outsourcing market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of business process outsourcing market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Business Process Outsourcing Market Categorization:

The business process outsourcing market was categorized into three segments, namely service type (Finance & Accounting, Human Resource, KPO, Procurement & Supply Chain, Customer Services), end-use (BFSI, Healthcare, Manufacturing, IT & Telecommunications, Retail), and region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa).

Segment Market Methodology:

The business process outsourcing market was segmented into service type, end-use, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The business process outsourcing market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into thirteen countries, namely, the U.S.; Canada; the UK; Germany; France; China; India; Japan; Brazil; Mexico; Rest of Europe; Rest of Asia Pacific; Rest of Latin America.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Business process outsourcing market companies & financials:

The business process outsourcing market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• Accenture - Accenture is a consulting firm that offers management consulting, technology, and Business Process Outsourcing (BPO) services. The company operates across five business units, including media & technology, communications, financial services, products, resources, and health & public service. Accenture's service segment comprises various services, such as application services, artificial intelligence, zero-based budgeting, and more. The company provides solutions for different industrial sectors like aerospace & defense, automotive, banking, communications & media, and industrial equipment. In 2020, Accenture invested a considerable amount of money in research and development to help its clients address new challenges in their respective markets. The company collaborates with Fortune 100 companies in 120 countries worldwide, making it a truly global consulting firm. Additionally, Accenture's business process outsourcing segment offers services related to sourcing and procurement, supply chain, finance and accounting, and sales & customer operations. Furthermore, Accenture has a worldwide network of innovation centers located in the U.S., Australia, China, Japan, Singapore, India, France, and South Africa, which allows it to provide innovative solutions to its clients across the globe.

• AMDOCS - AMDOCS is a worldwide business that concentrates on providing software and service solutions to media and communication firms. The business operates under a single segment called amdocsONE, which offers cloud-native applications to service providers. AMDOCS offers a comprehensive range of services within this segment, counting systems integration, data and intelligence, cloud, managed, digital business operations, hybrid operations, and consulting services. The firm boasts an impressive list of clients, including AT&T, America Movil, Bell Canada, Sprint, Telefonica, T-Mobile, and Vodafone, among others. Moreover, AMDOCS has partnered with over 600 content creators for technology and supply purposes. The firm has growth and support facilities in multiple countries, including Brazil, Canada, Cyprus, India, Mexico, the UK, and the US. Moreover, the company invested $USD 273.94 million and $USD 276.62 million in research and development activities in 2020 and 2018.

• Capgemini - Capgemini is a global company that offers consulting, digital transformation, technological, and engineering services across almost 50 countries. They have a major presence in North America and Europe, with France and North America contributing 53% of the company's revenue share in 2020. Capgemini serves clients in various industries such as financial services, manufacturing, consumer goods & retail, public sector, energy & utilities, and IT & telecom. The company operates primarily in three business segments: application & technology, operation & engineering, and strategy & alteration. The application & technology segment helps clients develop, upgrade, expand, and secure their digital and IT ecologies by offering new and innovative technologies. They provide application development, testing, and upkeep services to their clients. Capgemini also provides referring services to help clients develop new and innovative solutions across several verticals under the strategy and transformation business segment.

• CBRE Group Inc. - CBRE Group Inc. is a significant player in the commercial real estate industry, offering a diverse range of services across three main categories: advisory services, global workplace solutions, and real estate investments. The advisory services section provides a broad spectrum of real estate-related services, including property management, valuation services, project management services, and capital markets services that cover property sales, mortgage origination, sales, and servicing. The global workplace solutions section delivers a comprehensive suite of outsourcing services for real estate, encompassing facilities management, project management, and transaction services such as leasing and sales. Also, CBRE Corporate Outsourcing is a division of the company that offers business outsourcing services, including project management, facilities management, strategic consulting, and transaction management. CBRE Group Inc. operates in more than 530 offices globally as of December 2020, serving over 100 clients worldwide. The company has more than 100,000 employees as of December 2020, who serve clients across the Americas, Europe, Middle East & Africa (EMEA), and Asia Pacific regions, all of whom are fully reimbursed by clients for their costs.

• HCL Technologies Limited - HCL Technologies Limited is a company that provides engineering and IT services and solutions. Its services include R&D, custom application services, enterprise application services, IT infrastructure and management services, enterprise transformation services, business services, and Gen 2.0 outsourcing. The company serves various industries and industry verticals such as manufacturing, financial services, healthcare, consumer services, and public services. HCL Technologies Limited's Engineering Services unit focuses on developing engineering products, platforms, and solutions for industries including office automation, networking and telecom, medical devices, industrial manufacturing, consumer electronics, software, online, aerospace & defense, servers and storage, and semiconductors. The company provides hardware product engineering, embedded engineering, software product engineering, and mechanical engineering services. Its digital process operations services fall under business process automation services.

• Infosys Limited (Infosys BPM) - Infosys Limited is a global company that delivers services in business consulting, information technology, and outsourcing. In 2002, the corporation established Infosys BPO as its subsidiary to provide business process outsourcing solutions. The subsidiary was later renamed Infosys BPM Limited in December 2017. The company provides advanced Business Process Management (BPM) solutions that leverage cutting-edge technologies such as robotics, machine learning, artificial intelligence, predictive analytics, rich content visualization, and mobile technologies. Infosys BPM's Johannesburg office in South Africa was launched in December 2012 after Infosys BPM acquired Philips South Africa. Infosys BPM caters to clients across 45 countries worldwide and has subsidiaries such as Infosys McCamish, Infosys Portland, and Infosys BPO Americas, LLC.

• NCR Corporation - NCR Corporation is a global provider of POS software catering to the retail and hospitality industry verticals. Along with multi-vendor ATM software, the company offers a range of software, hardware, and services that can support an enterprise from the front end to the back end. NCR Corporation is renowned for delivering solutions to the banking, hospitality, retail, telecom, sports industry, and other verticals. Its clients can also access digitally connected services and professional services. NCR Corporation has a global presence across the Americas, Europe, the Middle East & Africa (EMEA), and Asia Pacific, including Japan (APJ). The company has facilities in the U.S., Brazil, Hungary, China, India, and Austria. In 2020, NCR Corporation invested USD 259 million in R&D.

• Sodexo - Sodexo is an international company that offers benefits and rewards services, personal and home services, and on-site services. Their customers belong to numerous industries, including healthcare, energy & resources, enterprises, sports, and government agencies, as well as educational institutes. Sodexo operates in two segments, namely, On-site Services and Benefits & Rewards Services. They have a presence in North America, Europe, Africa, Asia, Australia, Latin America, and the Middle East.

• TTEC Holdings, Inc. - TTEC Holdings, Inc. designs, implements, and functions channels that strengthen the relationship between the brands and customers. The business offers its services under two brands, namely TTEC Digital and TTEC Engage. TTEC Digital designs builds, and delivers customer solutions through a suite of technology offerings. TTEC Engage provides the essential technologies, human resources, infrastructure, and procedures to operate customer care, acquisition, and fraud detection and prevention services. TTEC Holdings, Inc. operates under four segments, namely customer management services, customer technology services, customer growth services, and customer strategy services. TTEC Holdings, Inc. caters to different industries and industry verticals, including healthcare, communications, media, technology, automotive, insurance, retail, travel, and hospitality. The company also caters to government agencies as well as Small & Medium Businesses (SMBs). TTEC Holdings, Inc.’s geographic footprint spans across North America, Asia Pacific, Latin America, Europe, the Middle East, and Africa. It has almost 89 customer engagement centers spread across six continents to provide its solutions and services worldwide.

• Wipro Limited - Wipro Limited is a multinational information technology company that provides consulting and business process outsourcing services to different industries and industry verticals such as automotive, aerospace & defense, banking, communications, capital markets, consumer electronics, education, construction & operations, engineering, healthcare, medical devices, insurance, natural resources, new age & media, pharmaceutical & life sciences, oil & gas, platforms & software products, industrial & process manufacturing, professional services, retail, semiconductors, and travel & transportation. The company accommodates new-age markets, network & edge providers, utilities, and the public sector. Wipro Limited's services include Data Analytics & AI, application development, digital operations, consulting, infrastructure services, and cybersecurity. The business has a noteworthy presence across North America, Europe, Latin America, Asia Pacific, the Middle East, and Africa.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Business Process Outsourcing Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2022, historic information from 2018 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Business Process Outsourcing Market Report Assumptions:

• The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.