U.S. markets closed
  • S&P 500

    4,070.56
    +10.13 (+0.25%)
     
  • Dow 30

    33,978.08
    +28.67 (+0.08%)
     
  • Nasdaq

    11,621.71
    +109.30 (+0.95%)
     
  • Russell 2000

    1,911.46
    +8.39 (+0.44%)
     
  • Crude Oil

    79.38
    -1.63 (-2.01%)
     
  • Gold

    1,943.90
    -2.80 (-0.14%)
     
  • Silver

    23.73
    -0.30 (-1.23%)
     
  • EUR/USD

    1.0874
    -0.0018 (-0.16%)
     
  • 10-Yr Bond

    3.5180
    +0.0250 (+0.72%)
     
  • GBP/USD

    1.2395
    -0.0012 (-0.10%)
     
  • USD/JPY

    129.8000
    -0.3530 (-0.27%)
     
  • BTC-USD

    23,208.05
    +157.00 (+0.68%)
     
  • CMC Crypto 200

    526.66
    +9.65 (+1.87%)
     
  • FTSE 100

    7,765.15
    +4.04 (+0.05%)
     
  • Nikkei 225

    27,382.56
    +19.81 (+0.07%)
     

Global Business Process Outsourcing (BPO) Market to Reach $215.9 Billion by 2026

SAN FRANCISCO, March 21, 2022 /PRNewswire/ -- A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled "Business Process Outsourcing (BPO) - Global Market Trajectory & Analytics". The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.

Global Business Process Outsourcing (BPO) Market to Reach $215.9 Billion by 2026
Global Business Process Outsourcing (BPO) Market to Reach $215.9 Billion by 2026

FACTS AT A GLANCE
Edition: 19; Released: February 2022
Executive Pool: 28132
Companies: 206 - Players covered include Accenture Plc; Alight Solutions LLC; American Data Exchange (AMDATEX); Atos SE; Automatic Data Processing, Inc.; Capgemini SE; Capita Plc; Ceridian HCM, Inc.; CGI Group, Inc.; Cognizant Technology Solutions Corporation; DXC Technology Co.; EXLService Holdings, Inc.; Genpact Limited; Infosys BPM Limited; International Business Machines Corp.; KARVY Global Services Limited; NGA Human Resources; NTT DATA, Inc.; Randstad Holding NV; Sopra Steria Group; StarTek, Inc.; Tata Consultancy Services Limited; TriNet Group, Inc.; Wipro Limited; WNS Global Services Ltd. and Others.
Coverage: All major geographies and key segments
Segments: Type (Customer Services, Human Resources, Finance & Accounting, KPO, Other Types); End-Use (Telecommunications & Technology, BFSI, Manufacturing, Retail, Other End-Uses)
Geographies: World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.

Complimentary Project Preview - This is an ongoing global program. Preview our research program before you make a purchase decision. We are offering a complimentary access to qualified executives driving strategy, business development, sales & marketing, and product management roles at featured companies. Previews provide deep insider access to business trends; competitive brands; domain expert profiles; and market data templates and much more. You may also build your own bespoke report using our MarketGlass™ Platform which offers thousands of data bytes without an obligation to purchase our report. Preview Registry

ABSTRACT-

Global Business Process Outsourcing (BPO) Market to Reach $215.9 Billion by 2026
Business Process Outsourcing (BPO), a segment of outsourcing, is defined as a technique of delegating responsibility of a range of business processes to third-party service provider for a fixed consideration. Rapid increase in the size and scope of BPO industry is attributed to the growing desire of global businesses to rationalize costs and address issues such as shortage of skilled personnel. Various benefits offered by BPO including cost reduction, improved customer services, better focus on core businesses, competitive capabilities, and speed to market, have encouraged enterprises to adopt the outsourcing model. The BPO industry has been witnessing rise in smaller deals, hybrid offshoring, larger governance needs and reduced cost consultancy models. Concepts such as robotic process automation, SaaS, and cloud computing have transformed BPO practices, leading to better operational effectiveness and productivity.

Amid the COVID-19 crisis, the global market for Business Process Outsourcing (BPO) estimated at US$164.7 Billion in the year 2022, is projected to reach a revised size of US$215.9 Billion by 2026, growing at a CAGR of 5.2% over the analysis period. Customer Services, one of the segments analyzed in the report, is projected to record a 4.2% CAGR and reach US$69.4 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Human Resources segment is readjusted to a revised 4.5% CAGR for the next 7-year period. Customer services BPO includes outsourcing services aimed at offering support for client's customer care operations as well as business processes pertaining to the customer contact center. This segment has now emerged as a major approach to deal with advanced, value-added functions that include customer care and analytics, consulting and implementation, and training and support. Human Resources (HR) BPO or HRO refers to the integrated operation and delivery of several HR processes, which are performed by a service provider on a contract basis. Common services covered as part of HRO contracts include employee benefits, payroll, recruitment, compliance, and training and development.

The U.S. Market is Estimated at $69.2 Billion in 2022, While China is Forecast to Reach $6.8 Billion by 2026
The Business Process Outsourcing (BPO) market in the U.S. is estimated at US$69.2 Billion in the year 2022. China, the world`s second largest economy, is forecast to reach a projected market size of US$6.8 Billion by the year 2026 trailing a CAGR of 6.1% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.5% and 3.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.4% CAGR. Like other commercial enterprise functions, outsourcing was first conceptualized and implemented in the developed nations, which continue to wield immense authority in the worldwide BPO industry, even after attaining significant maturity. Outsourcing model is widely deployed across various business functions including accountancy, HR, production, customer relations, logistics, and warehouse management etc., as a cost-, time- and resource-saving method. Currently, the US constitutes the largest consumer of BPO services. The presence of a large number of companies with geographically dispersed business operations/units and employees in Latin America and Asia would enhance the demand for outsourcing services. Financial services and telecom industries are expected to offer potential opportunities for service providers in these regions.

Finance & Accounting Segment to Record 5.8% CAGR
Finance and accounting BPO (or FAO) involves handing over the responsibility and management of finance and accounting business processes to third party experts. Clients seek outsourcing services for F&A operations primarily to cut costs, reduce complexity of operations for the F&A department, and to comply with regulatory specifications. In the Finance & Accounting segment, complex processes such as external reporting, budgeting, accounting, planning, and forecasting continue to be outsourced due to the growing standardization of these functions. In the global Finance & Accounting segment, USA, Canada, Japan, China and Europe will drive the 5.6% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$33.7 Billion will reach a projected size of US$49.4 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$5 Billion by the year 2026, while Latin America will expand at a 5.1% CAGR through the analysis period.

Uncertainties in Politico-Economic Policies Challenge BPO Sector
The protectionist policies adopted by some governments, specifically the US, during tough economic times could prove to be a potential roadblock for the offshoring industry. Though government policies directly do not restrict clients' ability to contract offshore labor, the adoption of new regulations encouraging protectionist measures could potentially hamper growth in the industry. For instance, the US government has been looking to protect local businesses by implementing restrictive visa regulations for workers from abroad, and discouraging clients from using services of vendors that use offshore labor or that depend on visa holders. These decisions are vital considering the fact that offshore BPO firms' hold an edge due to their offshore leverage, which could be at threat due to such measures. Similarly, tax subsidies or taxes for preventing the use of offshore labor could lower the benefits of cost arbitrage for the offshore companies. Similarly, in the UK and other EU countries, outsourcing industry is significantly affected by the restrictive caps being placed on skilled migrations. Stringent rules are also being implemented on intra-company transfers, which could have serious implications for outsourcers that generally send employees to work onshore for client projects. With such decisions complicating the process of obtaining visas, clients could be driven away from offshore locations and seek alternatives in the form of nearshore or onshore suppliers.

Ongoing transformations in the political and economic scenarios across the globe are posing several challenges for investors and businesses worldwide. The global BPO sector, which finds itself among the worst-hit segments affected by the fluctuations in the global economy, is currently being impacted by politico-economic scenarios such as the US tariff regime, among others. The shared service and the BPO sector are still growing albeit in an uncertain environment. Unfazed by the turmoil in European and other international markets, Latin America is treading a steady growth curve owing to operating efficiency and cost-cutting initiatives. Rising costs are a trade-off resulting from wage inflation in several economies. Attracting BPO services as an inward investment is expected to boost employment opportunities for several countries. In addition, the host of job profiles created by the BPO sector is rich in value and diversity. Developing nations such as India and Philippines are among the largest providers of manpower, human resources to the BPO industry running comprising millions of employees. Thriving demand for the BPO sector is expected to grow substantially in the coming years. More

MarketGlass™ Platform
Our MarketGlass™ Platform is a free full-stack knowledge center that is custom configurable to today`s busy business executive`s intelligence needs! This influencer driven interactive research platform is at the core of our primary research engagements and draws from unique perspectives of participating executives worldwide. Features include - enterprise-wide peer-to-peer collaborations; research program previews relevant to your company; 3.4 million domain expert profiles; competitive company profiles; interactive research modules; bespoke report generation; monitor market trends; competitive brands; create & publish blogs & podcasts using our primary and secondary content; track domain events worldwide; and much more. Client companies will have complete insider access to the project data stacks. Currently in use by 67,000+ domain experts worldwide.

Our platform is free for qualified executives and is accessible from our website www.StrategyR.com or via our just released mobile application on iOS or Android

About Global Industry Analysts, Inc. & StrategyR™
Global Industry Analysts, Inc., (www.strategyr.com) is a renowned market research publisher the world`s only influencer driven market research company. Proudly serving more than 42,000 clients from 36 countries, GIA is recognized for accurate forecasting of markets and industries for over 33 years.

CONTACTS:
Zak Ali
Director, Corporate Communications
Global Industry Analysts, Inc.
Phone: 1-408-528-9966
www.StrategyR.com
Email: ZA@StrategyR.com

LINKS
Join Our Expert Panel
https://www.strategyr.com/Panelist.asp

Connect With Us on LinkedIn
https://www.linkedin.com/company/global-industry-analysts-inc./

Follow Us on Twitter
https://twitter.com/marketbytes

Journalists & Media
Info411@strategyr.com

Cision
Cision

View original content to download multimedia:https://www.prnewswire.com/news-releases/global-business-process-outsourcing-bpo-market-to-reach-215-9-billion-by-2026--301505565.html

SOURCE Global Industry Analysts, Inc.