KNOWLEDGE PROCESS OUTSOURCING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Knowledge Process Outsourcing Market Size and Forecast – 2025 to 2032

The Global Knowledge Process Outsourcing Market is estimated to be valued at USD 36.19 Bn in 2025 and is expected to reach USD 103.58 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 16.2% from 2025 to 2032.

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Key Takeaways

• Based on Product Type, the Analytics & Market Research segment leads the market with the largest share of the market in 2025, driven by rising demand for customer insights, competitive intelligence, and supply chain analytics.
• Based on Application, the BFSI segment is projected to lead the market with 38% share in 2025, due to heavy reliance on outsourced data analytics, risk management, and compliance services to streamline operations and enhance decision-making.
• Based on Region, North America s set to lead the market with 36.8% in 2025. While, Asia Pacific is expected to be fastest growing region.

Market Overview

Rising need to improve operational efficiency and reduce costs is propelling the growth of the knowledge process outsourcing market. Focus towards enhancing customer experience and streamlining business processes are also fueling the market growth. Furthermore, advancement in technologies such as artificial intelligence and machine learning are enabling outsourcing companies to offer enhanced analytical solutions. Adoption of these new technologies allow for improved data-driven decision making. However, data security and privacy concern may hinder the market growth to some extent going forward.

Current Events and Its Impact

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Segmental Insights

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Knowledge Process Outsourcing Market Insights, By Application - BFSI Leads Due to Heavy Reliance on Outsourced Data Analytics, Risk Management, And Compliance Services to Streamline Operations and Enhance Decision Making

In terms of application, the BFSI segment is expected to hold 38% share of the market in 2025, as banks and financial institutions outsource complex processes like compliance, fraud detection, credit risk analysis, and investment research. Increasing regulatory requirements and digital transformation push BFSI players to rely on KPO providers for specialized expertise, cost optimization, and enhanced accuracy in financial operations.

For instance, in July 2025, Infosys Foundation committed Rs 200 crore to launch the Infosys Springboard Livelihood Program, aimed at helping 500,000 job seekers in India secure meaningful employment by 2030. The programme includes upskilling in STEM and non-STEM areas, including Banking, Financial Services and Insurance (BFSI), AI/ML, and digital marketing, in collaboration with ~20 implementation partners.

Knowledge Process Outsourcing Market Insights, By Product Type - Analytics & Market Research Dominance is Driven by Rising Demand for Customer Insights, Competitive Intelligence, and Supply Chain Analytics

In terms of product type, the analytics & market research segment is projected is account for largest share of the market in 2025, driven by demand for customer behavior insights, operational efficiency improvements, and competitive intelligence. Companies increasingly rely on outsourcing analytics to reduce costs, leverage advanced tools, and gain real-time decision-making support, fueling significant growth in this segment.

For instance, in November 2024, NS Infotech, headquartered in Hubballi, Karnataka, solidified its position as a leading provider of Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) services. Catering to sectors such as BFSI, healthcare, and retail, the company offers services including KYC compliance, loan processing, customer support, and analytics. With a clientele that includes Fortune 500 companies, NS Infotech continues to deliver cost-effective, high-quality solutions globally.

Regional Insights

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North America Knowledge Process Outsourcing Market Analysis & Trends

North America continues to dominate the global knowledge process outsourcing market and is estimated to account for 36.8% share in 2025 due to the region’s benefits from a mature outsourcing ecosystem, strong demand from BFSI, healthcare, and IT sectors, and high adoption of advanced analytics and legal outsourcing. Availability of skilled professionals and strict compliance requirements further strengthen its leadership.

For instance, in January 2024, Premier NX announced its expansion into on-shore outsourcing across the U.S. and Canada. The firm has acquired a North American contact center, augmenting its capabilities in industries such as CPG, healthcare, beauty, and wellness. With this move, Premier aims to offer enhanced right-shoring solutions, multilingual support, and improved operational efficiency for its growing client base.

Asia Pacific Knowledge Process Outsourcing Market Analysis & Trends

Meanwhile, the Asia Pacific region has emerged as the fastest growing regional market. Rapid digital transformation, cost advantages, and the availability of a large skilled talent pool in countries like India, China, and the Philippines are fueling strong growth. Expanding demand for analytics, legal, and financial outsourcing from global companies positions Asia-Pacific as the fastest-growing region.

For instance, in May 2025, Chartered accountants Kartik Lakhani (ex-Deloitte) and Nomeeta Mistry (ex-PwC) have launched a new knowledge process outsourcing (KPO) firm that aims to bridge Australian law practices with globally-based legal and accounting talent.

Knowledge Process Outsourcing Market Outlook Country-Wise

The U.S. Knowledge Process Outsourcing Market Trends

The U.S. demonstrates strong demand for Knowledge Process Outsourcing (KPO) services, particularly in analytics, financial, and legal domains. Organizations seek cost optimization while leveraging advanced data-driven decision-making tools. High adoption of AI, cloud analytics, and predictive modeling fuels the outsourcing of complex knowledge tasks, making the U.S. a key market for KPO growth and innovation.

For instance, in September 2025, Pharmbills expanded its U.S. leadership team to enhance its global delivery model and support clients in navigating policy reforms and value-based care. The company aims to strengthen its position in the Knowledge Process Outsourcing (KPO) sector by offering tailored solutions to healthcare organizations. This strategic move underscores Pharmbills' commitment to delivering high-quality services in a rapidly evolving industry.

India Knowledge Process Outsourcing Market Trends

India remains the leading hub for KPO services due to its vast, skilled talent pool and cost-efficient operations. The country excels in analytics, legal, and engineering outsourcing, attracting global clients. Its growing expertise in AI, big data, and digital solutions enables high-quality delivery of complex knowledge tasks, sustaining India’s prominence in the global KPO landscape.

For instance, in December 2024, the Adani Foundation, in collaboration with ACC, has empowered 50 women in rural Varanasi through its Adani Skill Development Centre at Salai Banwa. The initiative recently achieved a significant milestone with the placement of these trained women at Indivillage, a knowledge process outsourcing (KPO) enterprise. The training programs focused on providing women with technical, communication, and industry-specific skills necessary for roles in data processing, market analytics, and customer support. This program aims to promote sustainable growth and create opportunities for women in the digital economy.

Market Report Scope

Knowledge Process Outsourcing Market Report Coverage

Knowledge Process Outsourcing Market Driver

Rise of digitalization and advanced analytics

With digital disruption transforming businesses across all industries, companies are increasingly leveraging digital technologies and advanced analytics to drive innovation, gain competitive advantage and optimize business processes. Knowledge process outsourcing helps businesses stay ahead of the curve by providing access to skilled talent and capabilities in areas such as data analytics, artificial intelligence, machine learning, cloud computing, Internet of Things and more. KPO vendors assist clients in gaining insights from vast amounts of data through techniques such as predictive modelling, cluster analysis and big data analytics. They also help design and develop digital strategies, platforms and solutions that enhance customer experience and make business processes more efficient. Outsourcing knowledge functions allows companies to focus on their core businesses while leveraging the specialized digital expertise and infrastructure available with KPO providers.

Market Concentration and Competitive Landscape

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Analyst Opinion (Expert Opinion)

The Knowledge Process Outsourcing market value is undergoing a decisive transformation from a labour-arbitrage commodity into a capability-led, outcome-driven services sector. This transition is being driven by three interlocking forces: rapid uptake of automation and generative AI across enterprise knowledge workflows; client demand for domain expertise and measurable business outcomes; and supplier consolidation around technology-enabled vertical platforms.

Rapid automation adoption increases buyer bargaining power for commoditised services. Surveys indicate that RPA and adjacent automation have reached majority adoption in many large enterprises (for example, more than half of surveyed organisations have implemented RPA), creating a structural floor on pure transactional labour value and pressuring unit prices for undifferentiated work. Providers must therefore shift commercial models from time-and-materials to outcome/impact pricing for higher-value streams.

Examples demonstrate value when KPO is repositioned as outcome-oriented, domain-led service. Recent client case studies from major providers show measurable business impact when analytics and generative AI are embedded into domain workflows, e.g., material reduction in cash leakage and demonstrable credit-risk improvements following targeted analytics and AI interventions. These are not marginal productivity gains; they represent client outcomes that justify premium contracting and longer strategic engagements. Providers without such demonstrable IP or sector playbooks will be vulnerable to churn.

Knowledge Process Outsourcing Industry News

• In July 2025, French IT services firm Capgemini has agreed to acquire business process outsourcing company WNS for US$3.3 billion, as part of its strategy to strengthen AI-driven “intelligent operations.” The deal aims to combine AI capabilities with WNS’s outsourcing expertise to lead in process transformation and automation.
• In June 2025, iQor CXBPO launched infinityAiQ™, a unified intelligence platform combining AI, analytics and human expertise to enhance the customer experience. The system, which includes a predictive analytics engine called Insights iQ™, is built to improve customer loyalty, reduce costs, and boost revenue by analysing 100% of customer interactions and enabling real-time decision-making.
• In May 2025, Firstsource Solutions launched its Firstsource Gigsourcing Platform, an AI-powered crowdsourcing tool aimed at enabling enterprises to engage flexible, global gig talent. The platform, part of Firstsource’s relAI™ suite, enables seamless onboarding, performance tracking and automated payments, offering a scalable alternative to traditional workforce models.

Market Segmentation

• Product Type Insights (Revenue, US$ Bn, 2025 - 2032)
• Analytics & Market Research
• Customer & Marketing Analytics
• Operations & Supply Chain Analytics
• Competitive Intelligence & Industry Analysis
• Engineering & Design
• Financial Process Outsourcing
• Legal Process Outsourcing
• Publishing Outsourcing
• Research & Development Outsourcing
• Others
• Application Insights (Revenue, US$ Bn, 2025 - 2032)
• BFSI
• Healthcare
• IT & Telecom
• Manufacturing
• Pharmaceutical
• Retail
• Others
• Regional Insights (Revenue, US$ Bn, 2025 - 2032)
• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa
• GCC Countries
• Israel
• South Africa
• Rest of Middle East & Africa
• Key Players Insights
• A3logics
• Accenture PLC
• Boston Consulting Group, Inc.
• Capgemini SE
• Cognizant Technology Solutions Corporation
• Concentrix Corporation
• Deloitte Touche Tohmatsu Limited
• ExlService Holdings, Inc.
• Firstsource Solutions Limited
• Genpact Limited
• HCL Technologies Ltd
• Hewlett Packard Enterprise Company
• Infosys Limited
• KPMG International Limited
• Tata Consultancy Services Limited

Sources

Primary Research

Interviews from the following stakeholders

• Stakeholders
  • Interviews with KPO service providers, client-side decision makers (CFOs, CIOs, strategy heads), HR outsourcing managers, legal process outsourcing managers, and data analytics project leads across key regional markets.
• Specific stakeholders
  • Heads of analytics and data science at BFSI institutions
  • Intellectual property and legal outsourcing managers at law firms and corporate legal departments
  • Knowledge management leads at global consulting divisions of IT/tech enterprises
  • Research and innovation directors in pharma and life sciences companies
  • Procurement and vendor management heads in telecom and media companies
  • Business transformation leads in healthcare providers and insurers
  • Data engineering heads and advanced analytics directors in e-commerce and retail

Databases

• World Bank Open Data – ICT & Business Services Trade
• UNCTAD Statistics – Trade in Knowledge-Intensive Services
• World Trade Organization (WTO) Services Trade Database
• U.S. Bureau of Economic Analysis (BEA) – International Services Data
• Eurostat – Business & ICT Services Trade Statistics
• Reserve Bank of India – Services Export Data
• National Association of Software and Service Companies (NASSCOM) Statistics
• Philippines Statistics Authority – Business Process Services Data
• OECD – Trade in Value-Added (TiVA) Database

Magazines

• Global Services Magazine
• Outsource Magazine
• CIO Review – Outsourcing & IT Services Section
• Analytics India Magazine
• Dataquest (India)
• CFO Insights (Services & Outsourcing section)
• ITPro (Knowledge Services section)
• Finance Digest – Business Process & Outsourcing Coverage

Journals

• Journal of Knowledge Management (Emerald Insight)
• Information & Management (Elsevier)
• Journal of Business Research
• International Journal of Information Management
• Journal of Strategic Information Systems
• MIS Quarterly Executive
• Journal of Outsourcing & Organizational Information Management

Newspapers

• The Economic Times – IT & Outsourcing
• Business Standard – Services & Analytics Coverage
• The Wall Street Journal – Business & Tech Services Section
• Financial Times – Services & Global Sourcing Reports
• Nikkei Asia – Business Services & IT Outsourcing
• The Hindu Business Line – Outsourcing and IT Services
• South China Morning Post – Tech Services & Analytics

Associations

• National Association of Software and Service Companies (NASSCOM)
• Business Processing Association of the Philippines (BPAP)
• Data Management Association (DAMA International)
• International Association for Contract & Commercial Management (IACCM)
• International Legal Technology Association (ILTA)
• Healthcare Information and Management Systems Society (HIMSS) – Outsourced Data Analytics
• Confederation of Indian Industry (CII) – IT & Services Council
• European Outsourcing Association (EOA)

Public Domain Sources

• Ministry of Electronics and IT (MeitY), India
• Department of Commerce, India – Services Exports Data
• U.S. International Trade Commission (USITC) – IT & Professional Services
• National Institute of Standards and Technology (NIST), U.S. – Knowledge Systems Standards
• OECD Policy Papers on Knowledge-Intensive Services
• Department of Trade and Industry (Philippines) – IT-BPM Reports
• UK Department for Business and Trade – Services Outsourcing Insights
• Reserve Bank of India – Reports on Services Sector Growth
• World Intellectual Property Organization (WIPO) – Outsourcing & Legal Services

Proprietary Elements

• CMI Data Analytics Tool, and Proprietary CMI Existing Repository of information for last 8 years

*Definition: The Global Knowledge Process Outsourcing Market involves outsourcing knowledge-based processes and services that require skilled resources with expertise in research and analytics. This includes processes like legal research, equity research, data research and analysis, market research and competitive analysis. Knowledge process outsourcing helps companies leverage remote talent and expertise to gain analytical insights at lower costs. It allows businesses to focus more on their core operations while remote professionals and teams handle knowledge-intensive work requiring high-end research, critical thinking and data analysis skills