Business Process Outsourcing Services Market to Scale $52 Bn Value by 2024
BPO Services Market
It started with an intent to curb business cost, but gradually, business process outsourcing (BPO) services began receiving accolades as providers of expertise. A business has several segments; from production to logistics to customer support, being the master of all is impossible. That is why most companies are now keeping these business process outsourcing services providers in the loop of their strategic business models. Its working methods are pretty simple. Companies hire business process outsourcing services providers to get expert services in areas where they lack skill, manpower, or experience. When decades back business process outsourcing services started, it was on the periphery of the central business model. But now, its impact on increasing profits is quite groundbreaking. The global business process outsourcing services market, at present, is deemed to garner 11% CAGR with which it can scale USD 52 billion over the forecast period (2017-2023). Market Research Future’s (MRFR’s) prediction has covered well all the driving factors and segments for a holistic understanding of the global business process outsourcing services market.
Factors for the Future
Business process outsourcing services enable companies in focusing particularly on their core business operations. The non-essential business services go out to some third-party at a cost that is much less than the original estimate. This increases the company’s profit margin. Developing countries have become alluring destinations as they are ready to provide the service at a reduced cost. It’s a kind of quid pro quo exchange. Source companies’ profit soars high, and service providers get their substantial slice of cake. In developing countries, a huge population and lack of opportunity are two beneficial factors for service providers that lower the labor cost. Such a symbiotic tie-up with emerging economies is only going to get better in the coming years as the profit goes both ways.
Closer observations reveal better insights and, for that, MRFR segmented the global business process outsourcing services market by service type and vertical. The effort aims at having a holistic overview of the entire market. Based on the service type, the business process outsourcing services market includes finance & accounting, customer services, human resource, KPO, procurement, and others. The finance & accounting segment can inspire the largest revenue fetching during the forecast period. A substantial demand can also be generated by the human resource sector. Going by verticals, the business process outsourcing services market encompasses banking, financial services, & insurance (BFSI), healthcare, manufacturing, IT & telecommunication, retail, and others. The BFSI segment is all set to gain substantially from the global market progress.
The reach of the business process outsourcing services market has increased since its inception decades back. For a closer look at the business process outsourcing market, MRFR put the market under the lens with a region-specific gradient. It included segments such as North America, Asia Pacific, Europe, and the Rest of the World (RoW). What the growth requires the most is well-structured industries, and, in this regard, North America tops the list. It can attribute the growth to the presence of the U.S. where myriad sectors are present in densely packed zones. For better growth, the region has long segmented their business structure into the critical, core, and non-core activities, of which they started outsourcing non-core activities long back to increase profits and focus on core activities. The region is leading the pack with the maximum business process outsourcing services market share. It has also developed superior technological support by integrating the latest models in their diverse segments. The APAC region’s possibility to emerge as the top CAGR gainer depends much on the availability of expertise and cost-effective labor.
Like any other market, the business process outsourcing services market also thrives on the intense competition. Market titans lock horns to try trumping each other through various strategic moves. Companies such as ADP LLC., Capgemini, Accenture PLC, Xerox Corporation, Tata Consultancy, Syntel, Wipro Limited, IBM Corporation, and Aon Hewitt have already made their presence felt and are impacting the global market in unprecedented ways.
Disruptive outsourcing is emerging as a trend that could influence the global market by transforming the operational features of a company and making them more effective in the process. Robotic processing automation (RPA), the blockchain, and other technologies are expected to play an integral part in taking ahead of the business process outsourcing services market.
Calligo has recently acquired Connected Technologies Inc, which has a reputation as outsourced information technology and cloud service company. This acquisition, along with Calligo’s earlier ones (3 Peaks and Mico Systems), made them the largest cloud and managed service providers in the Toronto region.
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