The global business process outsourcing (BPO) market size is anticipated to reach $525,2-billion by 2030 and expand at a CAGR of 9,4% from 2023 to 2030, according to a new study by Grand View Research.
Factors such as the increasing demand for outsourcing services across human resources, BFSI, and IT & telecommunication industries and the rising inclination of organisations to focus on their core competencies are anticipated to drive the BPO market.
Moreover, the evolution of next-generation services such as personalised 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 business process outsourcing 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 industry.
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 over the forecast period. Online interactions, cross-channel campaigns, and omnichannel communications are expected to be pivotal in improving customer engagement processes.
The Covid-19 pandemic adversely affected the BPO industry. Varying degrees of lockdowns and travel restrictions significantly led to disruptions in the supply chain, forcing many enterprises to work remotely. BPO companies faced challenges such as data security and lowered productivity due to a lack of supervision or inadequate infrastructure at employees’ homes.
Other issues included difficulties encountered while recording calls from remote work locations and the exposure of employee data to clients.
Additional highlights from the BPO report include:
- In terms of service type, the customer services segment dominated the market in 2022. The segment is also predicted to dominate the market over the forecast period owing to the increasing demand for service centers across the globe that need both offline and online technical support.
- With the steady growth of the global IT & telecommunication sector, the segment captured a sizeable revenue share in 2022. The segment is anticipated to grow at a steady pace over the forecast period owing to a rise in the number of IT companies and rapid industrialization globally.
- The Asia Pacific regional market is expected to attain a healthy CAGR over the forecast period. This growth can be attributed to the significant investments in infrastructure development by governments of developing countries such as India.
- Due to Covid-19, major players operating in the market and third-party service providers faced issues coping with changing work conditions. However, with the switch of BPO organizations from single-function operations to multi-functional to decrease the risk impact at any particular location, the market is expected to have lucrative opportunities in the forthcoming years.