Myriad Benefits Ranging from Cost Reduction to Process Efficiency Drive Demand for Business Process Outsourcing Services
The global market for Business Process Outsourcing (BPO) is projected to reach US$332.5 billion by 2025 driven by the increased demand for outsourcing services from corporate entities seeking to enhance productivity, reduce costs, optimize resource utilization, and transform business operations. World BPO market is also driven by ongoing adoption of new generation technologies such as Automation, Big Data, Cloud BPaaS/Cloud, and Analytics in BPO service infrastructure.
Business Process Outsourcing (BPO), a smaller part of outsourcing, relates to contracting of specific roles, operations and business functions to third party service providers. BPO, generally classified into back office outsourcing comprising internal business functions such as accounting and finance or human resources, and front office outsourcing consisting of contact center services, offers better utilization of resources, improved productivity, and cost efficiencies. Globalization and technology, transforming the manner in which business is performed and offering novel opportunities, has impacted BPO to change and evolve over the years. With technology innovations providing opportunities for accelerated economic growth, the demand for outsourcing of business operations is increasing multi-fold. As a result, the evolving environment offers significant growth opportunities for BPO companies as well as countries wanting to attract inward investment from the outsourcing industry. Focus has rapidly shifted from the traditional model of achieving labour cost reduction on to providing comprehensive sector specific value-added services, adoption of process automation, BPaaS (business process as a service), Big Data Analytics and secure private cloud infrastructure, among others.
Banking sectors across the globe are recognizing the potential of shared services in terms of cost reduction for various functions including procurement, human resources and financial imbursement processing among others. Customer services ranks among the key competitive differentiators in the BPO sector. Software solutions like Robotic Process Automation (RPA) that replicate some of manual processes is gaining significance. On the other hand re-shoring strategies in several consumer-driven sectors including financial services and telecommunications is expected to boost customer satisfaction levels. A relatively unknown effect due to the BPO phenomenon is the process work transformation. Though the BPO sector is often blamed for night shifts and its excessive dependence on American accents, many advantages outweigh the disadvantages, and hence it is here to stay readying itself for the next phase of innovation.
Ongoing transformations in the political and economic scenarios across the globe are posing several challenges for investors and businesses worldwide, which is also affecting the BPO sector. In recent times, the BPO trend has been associated with growing globalization of global economy, steering a shift in the manner in which Europe and the US view emerging countries of the Eastern world. The Brexit initiative is hugely responsible for roadblocks in the European business cycle as well as waning investor confidence levels. Despite all such challenges, the global BPO sector is projected to exhibit decent growth rates over the next decade.
As stated by the new market research report on Business Process Outsourcing (BPO), the United States represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 9.6% over the analysis period. India and the Philippines remain the two most lucrative destinations for BPO services. The BPO phenomenon in Asian countries is an outcome of three major global phenomena - globalization, economics and geopolitics.
Key players in the market include Accenture Plc, Alight Solutions LLC, 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, and WNS Global Services Ltd., among others.
The research report titled “Business Process Outsourcing – Market Analysis, Trends, and Forecasts” announced by Global Industry Analysts Inc., provides a comprehensive review of industry, trends, drivers, issues, mergers, acquisitions and other strategic industry activities of major companies worldwide. The report provides market estimates and projections for all major geographic markets such as the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (Australia, China, India and Rest of Asia Pacific), Latin America (Brazil and Rest of Latin America) and Rest of World. Key horizontal segments analyzed for the global and regional markets include Finance & Accounting, Customer Services, HR, KPO and Procurement. End-use markets analysed include Manufacturing; Telecommunications & Technology; Banking, Insurance & Finance Services; Retail and Others.
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