Global Business Process Outsourcing (BPO) Market Outlook, Trends and Forecasts 2018-2025

The global business process outsourcing market held a market value of USD 189.61 billion in 2017 and is expected to grow at a CAGR of 7.75% during the forecast period of 2018-2025.

Business process outsourcing (BPO) involves subcontracting of various business-related operations to the third-party vendors.

GET SAMPLE COPY @https://www.reportocean.com/industry-verticals/sample-request?report_id=43418

Factors such as benefit of saving various costs, enhanced operational efficiency, innovation, and flexibility are expected to drive the market growth. Moreover, improved customer service also drives the market growth subsequently.

However, potential security risks regarding confidentiality and integrity of the user’s data is expected to negatively impact the market growth during the forecast period. Furthermore, lack of effective framework for ensuring service quality and increasing budgetary pressures are also some factors that are restraining the market growth.

Major trends experienced by the global business process outsourcing market include emergence of new technologies such as cloud computing, software, social media, and automation for reduction of costs and growth acceleration. Other trends include multitasking to overcome shortage of skilled labor, startups becoming BPO customers, increased transparency, politics to affect investments, continued growth in the top outsourcing countries, such as India, Malaysia, & Philippines, and new outsourcing destinations that are expected to emerge in the next few years include Bulgaria, Romania, Egypt, Mexico, and Colombia.

Segmentation:

The global business process outsourcing market has been segmented into type and application.

On the basis of type, the global business process outsourcing market is divided into HR, procurement, customer care, logistics, and others. The customer care segment held the largest market share in 2019 owing to the high number of BPOs involved in customer care services.

By application, the global business process outsourcing market is classified into BFSI, manufacturing, healthcare, retail, telecom, and others. The BFSI segment held the largest market share in 2019 owing to rising focus of customers on real-time interactions, faster complaint resolution, and service expediency.

Regional Analysis:

By region, the global business process outsourcing market is segmented into the North America, Europe, Asia-Pacific, and LAMEA.

North America is estimated to lead the global market in 2019, owing to presence of major players, such as Cognizant, Genpact, and IBM Corporation, among others in the region. The Europe market is expected to garner significant market share owing to the availability of skilled workforce along with the service quality & operational efficiency. The business process outsourcing market is the Asia-Pacific region is anticipated to grow at the fastest CAGR owing to the government support in emerging countries, as the government views BPOs as a best opportunity for creating jobs. Countries likely to hold major market share in Asia-Pacific region include Philippines and India. The market in LAMEA is expected to slowly grow owing to the growth of the manufacturing and consumer goods manufacturing companies in the region. Furthermore, cost-effective pricing structure & availability of a large amount of labor skilled in speaking Spanish & Portuguese language fluently, is further expected to contribute to the market growth in Latin American region.

Competitive Landscape:

Key market players covered in the report include Accenture (Ireland), Cognizant (US), Deloitte (UK), Genpact (US), TCS (India), IBM Corporation (US), and others. These companies are involved in acquisitions and investments for growing in the rapidly changing business process outsourcing market.

For instance, Wipro Limited (India) acquired Alight HR Services (India) in July 2018 for USD 1.5 billion. With this acquisition, Wipro Limited expanded its business in human resource outsourcing, IT outsourcing, and finance process outsourcing.

Tags: Business Process Outsourcing Market