What are the current trends shaping the global market for business processes outsourcing services
The global market for business processes outsourcing (BPO) services is currently being shaped by several key trends. One of the most significant is the increasing competition for talent. As the war for talent intensifies, more companies are turning to outsourcing as a way to access the skills and expertise they need to stay competitive. However, the rules of outsourcing are changing, as third-party models evolve to incorporate artificial intelligence (AI) and data insights, enhancing business and IT processes.
Another major trend is the growth of the BPO market itself. According to recent research, the global BPO market reached almost $246 billion in 2021, with a compound annual growth rate (CAGR) of 9.1% from 2022 to 2030. This growth is being driven by a range of factors, including the increasing adoption of digital technologies, the need for companies to focus on their core competencies, and the desire to reduce costs. By 2024, the average spend per employee in the BPO market is projected to reach $10,520, with the United States generating the most revenue.
The BPO market is also becoming more segmented, with different end-users having different needs and requirements. For example, the financial services, manufacturing, healthcare, retail, and telecom sectors are all significant end-users of BPO services. In order to thrive in this increasingly complex and competitive market, BPO providers are having to develop more comprehensive digital capabilities, as companies demand more sophisticated and integrated solutions. This is leading to the growth of managed services, which combine cost reduction with discrete value-add, and support complex processes, applications, or full business functional areas requiring specialized expertise. These services are typically offered on a longer-term basis, tied to performance. Overall, the global outsourcing sector is expected to continue to grow in the coming years, as companies seek to leverage the benefits of outsourcing to improve their operations and remain competitive.