Major companies in the software and BPO services market include IBM; Fujitsu; HPE; SAP and Accenture. The global software and bpo services market is expected to grow from $2376. 31 billion in 2020 to $2498.
New York, Jan. 21, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Software And BPO Services Global Market Report 2021: COVID 19 Impact and Recovery to 2030" - https://www.reportlinker.com/p06009822/?utm_source=GNW
71 billion in 2021 at a compound annual growth rate (CAGR) of 5.2%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $3837.1 billion in 2025 at a CAGR of 11%.
The software and BPO services market consists of sales of software and BPO services by entities (organizations, sole traders and partnerships) that provide software and BPO services including application software programming services, computer program (software) development, computer software support services and web design services. This market includes sales of related goods. The software and BPO services market is segmented into software services and BPO services.
Asia Pacific was the largest region in the global software and bpo services market, accounting for 36% of the market in 2020. North America was the second largest region accounting for 29% of the global software and bpo services market. South America was the smallest region in the global software and bpo services market.
Many software services companies are adopting quality standards such as Information Technology Infrastructure Library (ITIL) and International Organization for Standardization (ISO) 9001 to align IT services with business requirements. ITIL describes processes, procedures and tasks that can be applied by an organization to deliver software products and services that meet predefined quality metrics. Similarly, ISO 9001 is a standard for quality products and services that meet desired quality standards and are reliable. For instance, about 1.1 million ISO 9001 certificates have been issued till date, to companies including software services, medical devices, oil and gas, automotive companies and government organizations.
High employee attrition in the BPO services industry is expected to hinder the growth of the BPO services market in the forecast period. According to the Analytics India Employee Attrition Study, in 2017, the USA accounted for the highest attrition rate of 42% in the BPO services industry, followed by Australia - 29%, Europe - 24% and India - 18% attrition. The impact of high attrition is expected to increase hiring costs for training and development of new employees, failure to attract new clients and decrease in productivity of the BPO services sector. All these factors are expected to reduce BPO providers’ profitability and stability in the market, hindering the growth.
The emergence of startups as major clients of software and BPO service providers is expected to drive the market. Driven by cost efficiency and the necessity to focus on core operations, startups have started outsourcing non-core operations such as finance and recruitment to specialized agencies and companies. For instance, outsourcing of finance and tech operations helps Leverage Edu, an India-based EdTech startup connecting students with mentors, save approximately 40% of its capital through outsourcing. The increasing number of startups is also expected to positively impact the market. The number of startups in India is expected to increase to 10,500 by 2020, a 4000 increase from the current number, depicting new opportunities for the software and BPO services market in the client expansion and revenue generation.
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