Business Process Outsourcing Market is estimated to be valued at USD 335.88 Bn in 2025 and is expected to reach USD 629.95 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 9.4% from 2025 to 2032.
The market is fueled by the growing focus of organizations on enhancing business agility and surviving the continuously changing business dynamics. In addition, increased efficiency and productivity of the firms, reduced time to market for new products, and the need to lower costs are also driving the Business Process Outsourcing market. Further, the increasing use of SaaS-based solutions and the rapid adoption of process automation are accelerating the business process outsourcing market growth.
For instance, in February 2024, Acquire BPO, announced the launch of its new division, Acquire.AI. This innovative consulting service is designed to guide businesses through the intricacies of the artificial intelligence revolution.
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Pricing models typically vary from fixed-fee contracts to transaction-based or outcome-based pricing, allowing clients to select options that best fit their operational and budgetary needs. Competitive pricing is a key driver for organizations opting to outsource, as it enables significant cost savings compared to in-house operations, especially when leveraging nearshore or offshore providers who offer access to a lower-cost yet skilled talent pool.
Based on Service Type, Customer Services is expected to dominate the global market over the forecast period and this is attributed to the rise in number of service centers requiring offline as well as online technical support all over the world. Thus, the adoption of customer service outsourcing is increasing across various sectors, which in turn is driving growth of this segment.
Finance & Accounting segment is also expected to witness significant growth in the near future and this is owing to the increasing number of banking facilities and stringent regulatory needs in banking sector, leading to rise in demand for outsourcing services. As this service offers significant cost reduction in operation costs, the demand for these services is increasing, further driving growth of this segment.
Based on End-Use, the IT & Telecommunication is expected to dominate the global market over the forecast period and this is attributed to the rise in industrialization around the world and increasing IT businesses. Telecom companies are increasingly outsourcing business functions from call-center outsourcing to billing operations for accounting and finance.
BFSI segment is also expected to witness significant growth in the near future and this is owing to the increasing adoption of BPO in financial institutions as an instrument for improving the cost efficiency. Moreover, with increasing digitalization, the need for business process outsourcing is increasing in BFSI sector, which is likely to boost growth of this segment.
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North America is projected to show major growth in the global business process outsourcing market over the forecast period. This is attributed to growing demand for business process outsourcing service from technology giants across the region.
Moreover, the region is also witnessing need for customization of service offerings to cater the individual needs, and high demand for cloud computing. These factors are further expected to accelerate growth of the market across the region.
Asia Pacific is anticipated to exhibit strong growth in the global business process outsourcing market during the forecast period, owing to increasing demand for skilled professionals, major investments by key vendors such as Infosys, Wipro, Accenture, and others in digitization.
For instance, in December 2020, HCL Technologies Limited expanded its business to Vietnam, which will allow the company to hire highly trained experts and offer improved IT solutions in the country.
There is fierce competition in the European BPO sector, with both domestic and international firms providing a wide range of services. In order to lower labor costs while keeping their markets close by, businesses are also using nearshoring and offshore tactics. Europe has consequently emerged as a major center for BPO services, distinguished by a highly qualified workforce, advantageous business conditions, and robust infrastructure.
The US is a major consumer of BPO services, with its large enterprises and government agencies outsourcing a wide range of business processes including customer support, IT services, finance, and human resources to both domestic and international providers. The US market is characterized by high demand for specialized, technology-driven outsourcing solutions, especially in areas like AI-driven analytics and cybersecurity.
India is widely recognized as the global epicenter of BPO services, leveraging its vast, highly skilled, and English-speaking workforce. India leads in finance and accounting outsourcing (35% global share), knowledge process outsourcing (40%), and IT BPO (50%), with Bangalore alone generating 30% of the country’s BPO revenue. The country’s cost advantages, robust infrastructure, and government support have made it the preferred destination for global companies seeking outsourcing partners.
China is a growing force in the BPO sector, particularly for IT outsourcing, manufacturing support, and data processing. The country benefits from a large labor pool, advanced technological capabilities, and increasing investments in digital infrastructure. While not as dominant as India in English-language services, China is expanding its presence in specialized BPO segments and nearshore outsourcing for Asian markets.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 335.88 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 9.4% | 2032 Value Projection: | USD 629.95 Bn |
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| Companies covered: |
Accenture, Teleperformance SE, Infosys Limited (Infosys BPM), WNS (Holdings) Ltd., HCL Technologies Limited, AMDOCS, CBRE Group Inc., Sodexo, NCR Corporation, TTEC Holdings, Inc., Wipro Limited, and Capgemini |
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Management and back-office operations are crucial for any company. Several transactional processes such as application processing, order fulfillment, and collection and billing leads to accumulations of large amount of data in companies. This further creates demand for advanced back-office solutions for handling such large amount of data.
As inclination toward adoption of cloud service in business process outsourcing is increasing across several organizations, the global business process outsourcing market is likely to show robust growth in the near future.
Business operations of a company are divided into core, critical, and non-core activities. Core activities are main competencies of a company that offer a strategic advantage, while critical activities need specialized skill-set. Non-core activities whereas are supporting operations that involve mainly relationship management between products and consumers.
Customization of these activities is crucial for allocating resources properly to further ensure in-time service deliveries. For this, companies are increasingly shifting toward adoption of outsourcing services, which further expected to support growth of the global business process outsourcing market over the forecast period.
Major players in the global business process outsourcing market are engaging in inorganic growth strategies such as partnerships, mergers & acquisitions, and regional expansion. For instance, in September 2022, Capgemini completed acquisition of Aodigy Asia Pacific, which allows Sales force consumer engagement solutions such as cloud migration, customer interaction, sales optimization, and business process automation through its operations in Singapore and Vietnam. Such inorganic growth strategies by market players are likely to continue in the market.
Business process outsourcing service providers offer various services with cost-effective solutions in conventional way. With emergence of novel advanced technologies such as Artificial Intelligence, BPO services are changing process by accelerating growth and reducing costs.
Increasing number of companies are investing in these novel technologies for reducing cost of infrastructure and office space. This trend is likely to continue in the global business process outsourcing market over the forecast period.
Emergence and development of next-generation services to create growth opportunities in the global business process outsourcing market. Business process outsourcing provides business with the means of efficiently increasing profits and reducing costs.
The advantages of novel technologies such as cloud computing, process automation, and social media among others is encouraging business to adopt BPO services. Thus, emergence of next generation services is further offering lucrative opportunities in the market.
Growing focus on multi-workflow scheduling is anticipated to generate multiple business opportunities in the global business process outsourcing market over the forecast period. In the early times, automated workflows were mainly adopted only by wealthy companies that could heavily invest in ERP and CRM systems. However, the cloud technology emergence has made automation possible for all types of organizations.
With the adoption of this technology, companies began to leverage their power for automating the complex workflow process in order to obtain process integration. Business Process Outsourcing in recent years has significantly expanded, as the awareness about its benefits is growing in companies. This is further creating multiple opportunities in the market.
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About Author
Monica Shevgan has 9+ years of experience in market research and business consulting driving client-centric product delivery of the Information and Communication Technology (ICT) team, enhancing client experiences, and shaping business strategy for optimal outcomes. Passionate about client success.
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