Global Business Process Outsourcing (BPO) Market To Reach $ 215.9 Billion By 2026
FACTS AT A GLANCE
Editing: 18; Posted: May 2021
Executive pool: 28132
Companies: 206 – Players covered include Accenture Plc; Alight Solutions LLC; American Data Interchange (AMDATEX); Atos SE; Automatic Data Processing, Inc .; Capgemini SE; Capita Plc; Ceridian HCM, Inc .; CGI Group, inc .; Cognizant technology solutions company; DXC Technology Co.; EXLService Holdings, Inc .; Genpact Limited; Infosys BPM Limited; International Business Machines Corp. ; KARVY Global Services Limited; Human resources NGA; NTT DATA, Inc .; Randstad Holding SA; Sopra Steria Group; StarTek, Inc .; Tata Consultancy Services Limited; TriNet Group, Inc .; Wipro Limited; WNS Global Services Ltd. and others.
Blanket: All major geographies and key segments
Segments: Type (customer service, human resources, finance and accounting, KPO, other types); End use (telecommunications and technology, BFSI, manufacturing, retail, other end uses)
Geographies: World; United States; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia Pacific; Australia; India; South Korea; Rest of Asia Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UNITED ARAB EMIRATES; Rest of Middle East; Africa.
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Global Business Process Outsourcing (BPO) Market To Reach $ 215.9 billion by 2026
Business Process Outsourcing (BPO), a segment of Outsourcing, is defined as a technique of delegating responsibility for a range of business processes to a third party service provider for a fixed consideration. The rapid increase in the size and scope of the BPO industry is attributed to the growing desire of global companies to rationalize costs and address issues such as the shortage of qualified personnel. Various advantages offered by BPO, including lower costs, improved customer service, better focus on core businesses, competitive ability and speed to market, have encouraged companies to adopt the business model. outsourcing. The BPO industry has witnessed an increase in small transactions, hybrid offshoring, greater governance needs, and lower cost consulting models. Concepts such as robotic process automation, SaaS, and cloud computing have transformed BPO practices, leading to improved operational efficiency and productivity.
Amid COVID-19 Crisis, Global Business Process Outsourcing (BPO) Market Is Estimated At 161.9 billion US dollars in 2020, is expected to reach a revised size of 215.9 billion US dollars by 2026, with a CAGR of 5.2% over the analysis period. Customer services, one of the segments analyzed in the report, is expected to register a CAGR of 4.2% and reach US $ 69.4 billion at the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, the growth of the human resources segment is readjusted to a revised CAGR of 4.5% for the next 7-year period. Customer Services BPO includes outsourcing services aimed at providing support for the customer’s customer service operations as well as business processes relating to the customer contact center. This segment has now become a major approach for managing advanced value-added functions that include customer service and analysis, consulting and implementation, as well as training and support. Human Resources (HR) BPO or HRO refers to the integrated operation and delivery of multiple HR processes, which are performed by a service provider on a contractual basis. Common services covered under HRO contracts include employee benefits, payroll, recruiting, compliance, training, and development.
The US market is estimated at $ 66 billion in 2021, when China is expected to reach $ 6.8 billion by 2026
The United States Business Process Outsourcing (BPO) market is estimated at 66 billion US dollars in 2021. China, the world’s second-largest economy, is expected to reach a projected market size of 6.8 billion US dollars by 2026, with a CAGR of 6.1% over the analysis period. Other notable geographic markets include Japan and Canada, each projects growth of 3.5% and 3.9% respectively over the analysis period. In Europe, Germany is expected to grow at around 5.4% CAGR. Like other business enterprise functions, outsourcing was first conceptualized and implemented in developed countries, which continue to exercise immense authority in the global BPO industry even after reaching maturity. significant. Outsourcing model is widely deployed in various business functions including accounting, human resources, production, customer relations, logistics and warehouse management, etc., as a cost saving method, time and resources. Currently, the United States is the largest consumer of BPO services. The presence of a large number of companies with geographically dispersed business activities / units and employees in Latin America and Asia would increase the demand for outsourcing services. The financial services and telecommunications sectors are expected to provide potential opportunities for service providers in these regions.
Finance & Accounting segment registers 5.8% CAGR
Finance and Accounting BPO (or FAO) involves transferring the responsibility and management of financial and accounting business processes to third party experts. Clients seek outsourcing services for M&A operations primarily to reduce costs, reduce the complexity of operations for the M&A department and comply with regulatory specifications. In the Finance & Accounting segment, complex processes such as external reporting, budgeting, accounting, planning and forecasting continue to be outsourced due to the increasing standardization of these functions. In the global Finance & Accounting segment, United States, Canada, Japan, China and Europe will lead to the estimated 5.6% CAGR for this segment. These regional markets representing a combined market size of 33.7 billion US dollars in 2020 will reach a projected size of US $ 49.4 billion before the end of the analysis period. China will remain among the most dynamic of this group of regional markets. Led by countries such as Australia, India, and South Korea, the market of Asia Pacific should reach US $ 5 billion by 2026, while Latin America will increase at a CAGR of 5.1% throughout the analysis period. Following
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