LONDON–(BUSINESS WIRE)–The business process outsourcing market is expected to grow by USD 76.90 billion, progressing at a CAGR of over 7% during the forecast period. The rising focus on reducing operational costs is one of the major factors propelling market growth. However, increasing costs for BPOs will hamper the growth during the forecast period.
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Setting up an in-house BPO team requires additional workforce, infrastructure, and training, which increases OPEX for organizations. Hence, organizations are increasingly outsourcing various business processes such as procurement, logistics, and customer support to BPO service providers. It helps expand their market share, expand their customer base, and enhance customer relationships while increasing focus on core competencies. Besides, outsourcing various processes to BPO service companies services could help an organization save between 30%-50% of operational costs. Many such benefits are driving the growth of the global business process outsourcing market.
Business Process Outsourcing Market: End-user Landscape
The IT and telecom segment is currently the largest end-user segment for business process outsourcing, followed by BFSI, retail, healthcare, and others. The growth of the IT and telecommunication segment is driven by factors such as technological advances, fast growth in data traffic, and the growing demand for digital content and communication by consumers. In addition, several vendors operating in the IT and telecommunication industry are partnering with service providers to enhance operational excellence and transform their digital operations. These factors are fostering the growth of the business process outsourcing market in the IT and telecommunication segment.
Business Process Outsourcing Market: Geographic Landscape
By geography, North America is going to have a lucrative growth during the forecast period. About 39% of the market’s overall growth is expected to originate from North America. The market in the region is more mature compared to other regions. Many vendors operating in the region are launching new technological platforms and forming partnerships to ease business processes. Besides, the high adoption of advanced technologies such as cloud computing solutions, social media, AI, and RPA by BPOs is significantly contributing to the growth of the business process outsourcing market in North America.
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