Business Process Outsourcing Services Market Competitors Strategy, Regional Analysis and Growth
- ehteshampeerzade
- Oct 9, 2020
- 4 min read
Market Highlights
Market Research Future (MRFR), in its latest Business Process Outsourcing (BPO) Services Market 2020, reveals multiple influencing factors of the market. A complete detail of the effect of COVID 19 on the business outsourcing service market is supplemented along with the report. As per MRFR analysis, the business process outsourcing market is expected to rise at 10.8% CAGR in the analysis period 2019–2024. On the conclusion of the review period, the business process outsourcing service market can value at USD 335.2 Billion.
Market Key Trends & Challenges
The profitability of the market has been witnessed cautiously as many enterprises, across the globe, are mainly outsourcing their business processes to bring more business in the ahead of aim. Such a factor is considered to be one of the prime factors considerably driving market growth.
Business process outsourcing is considered as the fastest process of outsourcing various business processes. The work it includes is mainly for IT, finance & accounting, back-office, e-commerce support, and other services. Today, many enterprises across the globe are getting in favor of outsourcing their business processes to concentrate on their core business effectively. Even the service providers are proposing advanced technology-based BPO services to make their offering more all-inclusive. As per this information, currently, advance technologies like artificial intelligence (AI), analytics, and cloud computing are thoroughly being used by the providers to make BPO services more operative. These factors have also been accountable for driving the market’s growth at a steady pace.
At the same time, over the years, many businesses have amplified their investment in BPO services. Both large, small- and medium-sized enterprises have been allocating budget for outsourcing their business process services. Also, various investments in BPO services are underway and likely to take place during 2019–2020. In the case of point, Saudi Telecom is going to renew its contract for BPO services for worth USD 2 billion. Similarly, Bharti Airtel also reintroduced a deal worth USD 2 billion for its BPO services for application development, maintenance, and infrastructure
Other factors, such as rising competition as well as the need to have an efficient business process, the mainstream enterprises are inclined towards adopting BPO services, which play a weighty role in reducing capital and operational expenditure. BPO services are assisting enterprises to focus on their core operation. With the introduction of advanced technology-based BPO services like AI, analytics, and cloud computing is also helping businesses to gather up-to-date real-time data for taking accurate and improved business decisions. Therefore, outsourcing disregards the need for investments in technology and infrastructure as outsourcing companies take the responsibility of various business processes and develop support for efficient work in the future. In this way, the market for BPO service is getting hype and will continue with it for the forecast period as well.
Segmentation:
The segment evaluation of the Global Business Process Outsourcing (BPO) Services Market is done by Organization Size, Type, Deployment, and Vertical.
The type based segments of the BPO services market are back office outsourcing, finance & accounting outsourcing, procurement outsourcing, human resource & recruitment outsourcing, e-commerce support services, IT outsourcing, training & development outsourcing, and others. The IT outsourcing segment can rise at 9.4% CAGR and generate about USD 82.99 billion by 2024. The finance & accounting outsourcing segment can rise at 10.0% CAGR and earn about USD 30.58 Billion in the years to come. The procurement outsourcing segment can rise at 17.1% CAGR by 2024.
The deployment based segments of the market are cloud and on-premise. The on-premise segment can rise at 7.5% CAGR and value above USD 107.59 billion in the years to come. The cloud segment can generate USD 78.63 billion at 14.6% CAGR across the analysis period.
The organization size based segments of the business process outsourcing market are SME enterprises and large enterprises. The large enterprise segment can rise at 8.5% CAGR to earn USD 126.62 billion revenue for the global market. The SME segment can valued at USD 59.60 Bn at 14.9% CAGR across the review period.
The vertical based segments of the market are IT and telecommunications, life sciences, BFSI, retail, manufacturing, consumer goods, government and defense, healthcare, and others. The BFSI segment can rise at 9.6% CAGR across the forecast period and value at USD 59.28 billion in the years to come. The IT & telecom segment can generate USD 41.32 billion revenue at 9.8% CAGR in the years to come. The government & defense segment can rise at 13.1% CAGR in the analysis period.
Regional Outlook
Geologically, the global business process outsourcing (BPO) services market size is also studied among the critical regions of Asia-Pacific, North America, Europe, and the Middle East & Africa, and South America.
While as per the study, the North America region leads the market by high market share in the business process outsourcing service market. The market’s evolution is mainly driven by the occurrence of many business process outsourcing (BPO) service providers that offer high-end services to regional as well as international end-users to increase their business. The leading players in the region are LLC, LP, ADP, IBM Corporation, and TTEC Holdings, Inc.
At the same time, Europe stood at the third-largest market in the business process outsourcing (BPO) service market in 2018. As per the MRFR analysis, Europe, with its countries such as the UK, Germany, France, and the rest of Europe have accounted to have the highest market share. The factors responsible for the market growth include the snowballing number of small- and medium-sized enterprises that are shifting concerning adopting outsourcing services. In Europe, business process outsourcing services are progressively being explicitly deployed in the IT and telecommunication, retail, and BFSI industries.
Key Players
The well-known players of the global business process outsourcing (BPO) service market are listed as LLC, HCL Technologies Limited, IBM Corporation, eNoah, Conduent Inc., Genpact, Accenture PLC, WNS (Holdings) Ltd, Capgemini, TTEC Holdings, Inc., Infosys BPM Limited, Tata Consultancy Services LimitedAegis Limited, Conneqt, and Tech Mahindra Limited.
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