Business Process Outsourcing Market To Reach $525.23 Billion By 2030

Business Process Outsourcing Market Growth & Trends 

The global business process outsourcing market size is anticipated to reach USD 525.23 billion by 2030, growing at a CAGR of 9.6% from 2024 to 2030, according to a new study by Grand View Research Inc. Factors such as the increasing demand for outsourcing services across human resources, BFSI, and IT & telecommunication industries and the rising inclination of organizations to focus on their core competencies are anticipated to drive the business process outsourcing (BPO) market. Moreover, the evolution of next-generation services such as personalized consumer experience, smart self-service, and rising consumer demand for multi-channel communication is anticipated to create opportunities for the market over the forecast period.

Over the last decade, the industry has experienced tremendous growth owing to benefits offered by business process outsourcing services, such as cost savings and increased flexibility. The global service industry has witnessed a dynamic shift with the advancement of the information and communication technology. Outsourcing business processes enables organizations to cut costs by shifting operations to nearshore or offshore locations, leveraging a low-cost and dynamic talent pool to meet business requirements. Additionally, the rising adoption of cloud-based services, artificial intelligence, and robotic process automation in the BPO sector is expected to favor market growth in the coming years. Online interactions, cross-channel campaigns, and omnichannel communications are expected to be pivotal in improving customer engagement processes.

The global business process outsourcing market continues to experience robust growth driven by several key factors. Technological advancements, particularly in automation, artificial intelligence, and data analytics, are revolutionizing BPO operations, enhancing efficiency, and enabling more sophisticated services. Companies are increasingly focusing on core competencies while outsourcing non-core functions to specialized BPO providers, driving demand for outsourcing services. Additionally, globalization and the expansion of businesses into new markets are fueling the need for scalable and cost-effective solutions, further propelling the market's growth. Moreover, emerging trends such as the gig economy and the rise of digital-first customer service are reshaping the BPO landscape, offering new opportunities for growth and innovation within the industry. 

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Business Process Outsourcing Market Report Highlights

• The Training and Development Outsourcing segment is expected to register the highest CAGR of around 11% over the forecast period. Outsourcing allows companies to tap into a pool of expertise and resources without investing in building their internal learning and development teams. Moreover, training employees requires time and resources from a company's core business activities. Outsourcing T&D frees up internal teams to focus on core competencies and strategic initiatives.

• The onshore segment is expected to register the highest CAGR of 10.0% over the forecast period. Onshore outsourcing minimizes risks associated with intellectual property theft, data security breaches, and political instability, which can be concerns of offshore outsourcing.

• The cloud segment is expected to register the highest CAGR of 11.2% from 2024 to 2030. Cloud-based BPO eliminates the need for companies to invest in expensive hardware, software licenses, and IT infrastructure to manage BPO operations. Cloud providers handle these aspects, leading to significant cost savings.

• The retail segment is expected to register the highest CAGR of 13.6% from 2024 to 2030. With massive data sets and real-time data analysis, outsourcing offers businesses a deeper understanding of consumer expectations. With the aid of a data entry services provider, companies can focus on market trends, best-selling products, and tracking returns, among others, to make informed decisions. 

• The Asia Pacific region is expected to register the highest CAGR of around 11.0% from 2024 to 2030. The market is expected to witness significant growth owing to the advances in digital technologies, the increasing number of e-commerce platforms, and the rising preference for outsourcing non-core services across various industries, including telecommunications, BFSI, healthcare, retail, and travel & hospitality. 

Business Process Outsourcing Market Segmentation

Grand View Research has segmented the global business process outsourcing market based on service type, outsourcing type, deployment, end-use, and region:

Business Process Outsourcing Service Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Finance & Accounting

• Human Resource

• KPO

• Procurement & Supply Chain

• Customer Services

• Sales & Marketing

• Logistics

• Training and Development Outsourcing

• Others

Business Process Outsourcing Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Onshore

• Nearshore

• Offshore

Business Process Outsourcing Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

• On premise

• Cloud

Business Process Outsourcing End-use Outlook (Revenue, USD Billion, 2018 - 2030)

• BFSI

• Healthcare

• Manufacturing

• IT & Telecommunications

• Retail

• Government & Defense

• Others

Business Process Outsourcing Market Regional Outlook (Market Value, USD Billion, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • Australia

  • South Korea

  • Singapore

  • Malaysia

• Latin America

  • Brazil

  • Argentina

• Middle East and Africa

  • UAE

  • KSA

  • South Africa

Key Players in the Business Process Outsourcing Market

• Accenture plc

• Amdocs

• Capgemini

• CBRE

• Cognizant

• Delta BPO Solutions

• Go4Customer

• HCL Technologies Limited

• Infosys Limited (Infosys BPM)

• International Business Machines Corporation

• NCR Corporation

• SODEXO

• Teleperformance SE

• TTEC Holdings, Inc.,

• Wipro