Business Process Outsourcing Market - Key Market Dynamics:
- Market Driver - The key factor driving growth in the business process outsourcing market is the focus on reducing operational costs. Operational costs refer to the cost involved in manufacturing goods and services, maintenance, and administration on a regular basis. BPO helps minimize operating costs and enhances business efficiency. BPO involves service aid for different business processes such as procurement, logistics, and customer care. Therefore, organizations have started outsourcing their business processes and operations to focus on and improve their core businesses. Organizations need BPO services to increase market share, expand their customer base, and improve customer relationships. It is estimated that logistics BPO outsourcing companies help reduce operational costs by up to 70%. Logistics companies use third-party BPO providers to fuel revenue growth and attain operational efficiency at a reduced cost. This will have a positive impact on the global BPO market.
- Market Challenges - Data breaches will be a major challenge for the business process outsourcing market during the forecast period. For a firm, data theft refers to the illegal transfer of data, which can be confidential, financial, or personal. Such data is normally stored on electronic devices such as servers and computers and includes proprietary process-oriented information, technologies, software codes, and passwords. Data security and data privacy have always been key concerns for BPO companies. With increasing technological advances and the rising use of Internet services across the world, the safety of customer data is becoming crucial. Data breaches will be a major challenge for the global BPO market. A data breach can tarnish the reputation of individuals and organizations.
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Business Process Outsourcing Market - Segmentation Analysis
The business process outsourcing market report is segmented by End-user (IT and telecommunication, BFSI, Retail, Healthcare, and Others) and Geography (North America, Europe, APAC, MEA, and South America).
- Revenue Generating Segment - The business process outsourcing market share growth in the IT and telecommunication segment will be significant for revenue generation. The growth of this segment can be attributed to technological advances, fast growth in data traffic, and growing demand for digital content and communication by consumers. The telecom services industry is expected to witness steady growth with the advent of the 5G spectrum.
- Regional Highlights - 38% of the market's growth will originate from North America during the forecast period. The US is the key market for business process outsourcing in North America. Market growth in this region will be slower than the growth of the market in the South American, MEA, and APAC regions. The rise in the adoption of advanced technologies such as cloud computing solutions, social media, AI, and RPA will facilitate the business process outsourcing market growth in North America over the forecast period.
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Business Process Outsourcing Market - Vendor Analysis
The business process outsourcing market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
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- Accenture Plc
- Automatic Data Processing Inc.
- Capgemini SE
- Infosys Ltd.
- International Business Machines Corp.
- NEC Corp.
- NTT DATA Corp.
- Tata Consultancy Services Ltd.
- Wipro Ltd.
- ZTE Corp.
- To gain access to more vendor profiles with their key offerings available with Technavio, Click Here
The competitive scenario provided in the Business Process Outsourcing Market Report analyzes, evaluates, and positions companies based on various performance indicators. Some of the factors considered for this analysis include the financial performance of companies over the past few years, growth strategies, product innovations, new product launches, investments, growth in market share, etc. Don't wait, Make a strategic approach & boost your business goals with our Business Process Outsourcing Market Forecast Report - Buy Now!
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Business Process Outsourcing Market Scope |
Report Coverage |
Details |
Page number |
120 |
Base year |
2020 |
Forecast period |
2021-2025 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4% |
Market growth 2021-2025 |
USD 40.16 billion |
Market structure |
Fragmented |
YoY growth (%) |
3.53 |
Regional analysis |
North America, Europe, APAC, MEA, and South America |
Performing market contribution |
North America at 38% |
Key consumer countries |
US, UK, Germany, China, and Japan |
Competitive landscape |
Leading companies, competitive strategies, consumer engagement scope |
Companies profiled |
Accenture Plc, Automatic Data Processing Inc., Capgemini SE, Infosys Ltd., International Business Machines Corp., NEC Corp., NTT DATA Corp., Tata Consultancy Services Ltd., Wipro Ltd., and ZTE Corp. |
Market Dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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Key Topics Covered:
Executive Summary
Market Landscape
- Market ecosystem
- Value chain analysis
Market Sizing
- Market Definition
- Market segment analysis
- Market size 2020
- Market outlook: Forecast for 2020 - 2025
Five Forces Analysis
- Five forces summary
- Bargaining power of buyers
- Bargaining power of suppliers
- Threat of new entrants
- Threat of substitutes
- Threat of rivalry
- Market condition
Market Segmentation by End-user
- Market segments
- Comparison by End-user
- IT and telecommunication - Market size and forecast 2020-2025
- BFSI - Market size and forecast 2020-2025
- Retail - Market size and forecast 2020-2025
- Healthcare - Market size and forecast 2020-2025
- Others - Market size and forecast 2020-2025
- Market opportunity by End-user
Customer landscape
Geographic Landscape
- Geographic segmentation
- Geographic comparison
- North America - Market size and forecast 2020-2025
- Europe - Market size and forecast 2020-2025
- APAC - Market size and forecast 2020-2025
- MEA - Market size and forecast 2020-2025
- South America - Market size and forecast 2020-2025
- Key leading countries
- Market opportunity by geography
- Market drivers
- Market challenges
- Market trends
Vendor Landscape
- Overview
- Landscape disruption
Vendor Analysis
- Vendors covered
- Market positioning of vendors
- Accenture Plc
- Automatic Data Processing Inc.
- Capgemini SE
- Infosys Ltd.
- International Business Machines Corp.
- NEC Corp.
- NTT DATA Corp.
- Tata Consultancy Services Ltd.
- Wipro Ltd.
- ZTE Corp.
Appendix
- Scope of the report
- Currency conversion rates for US$
- Research Methodology
- List of abbreviations
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