The global business process outsourcing (BPO) market was valued at approximately USD 280.64 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 9.6% from 2024 to 2030. BPO refers to the practice of outsourcing various business operations and responsibilities, such as customer service, human resources, accounting, and IT support, to external service providers. This practice has gained immense popularity across industries due to the numerous benefits it offers, such as increased operational flexibility, cost reduction, and enhanced service quality.

One of the key reasons businesses are increasingly turning to BPO is the ability to reduce operational costs. By outsourcing non-core functions to third-party service providers, companies can focus their internal resources on their primary objectives, such as product development or customer engagement, thereby driving incremental value for their customers. Outsourcing also allows businesses to tap into specialized expertise, improving efficiency and service quality in areas like IT support, finance, and human resources.

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Business Process Outsourcing Market Segments Highlights:

• The customer services segment dominated the market with a revenue share of 22.7% in 2023. The segment is anticipated to retain its dominance with a significant CAGR from 2024 to 2030.
• The training and development segment is predicted to witness significant growth from 2024 to 2030. The advent of new technologies such as artificial intelligence (AI), machine learning (ML), robotic process automation (RPA), and data analytics has transformed the nature of work in BPO operations.
• The IT & telecommunication segment held the largest revenue share around 25.0% in 2023. The increase in the number of IT businesses and rapid industrialization globally are some of the factors boosting the demand for business process services across IT and telecommunication companies.
• The retail segment is expected to witness the fastest growth from 2024 to 2030. Retailers are increasingly adopting omni-channel strategies to provide seamless shopping experiences across multiple channels, including brick-and-mortar stores, websites, mobile apps, and social media platforms.
• The onshore segment held the largest revenue share in 2023, accounting for 45.2% of the overall market, and is expected to grow at the fastest CAGR from 2024 to 2030.
• The offshore segment is expected to witness significant growth at a CAGR of over 9.0% from 2024-2030. Industry-specific outsourcing, tailored to sectors such as healthcare, retail, and finance, is driven by factors such as regulatory compliance and industry expertise.
• The cloud segment accounted for the largest market share over 51.0% in 2023 and is expected to grow at the fastest CAGR from 2024 to 2030.
• The on-premise segment is expected to witness significant growth from 2024 to 2030. Data security and compliance concerns have fuelled the demand for on-premise BPO solutions, especially in industries dealing with sensitive information such as finance, healthcare, and government.
• North America accounted for over 36.0% revenue share in 2023 and is expected to retain its dominance from 2024 to 2030 due to the rising demand for BPO services from several tech giants in the region.
• The U.S. business process outsourcing market is expected to grow at a CAGR of 9.4% from 2024 to 2030. The growing adoption of cloud computing is driving the market’s growth in the U.S.
• The business process outsourcing market in Asia Pacific dominated the global marketin 2023, accounting for 25.6% of the total revenue share.
• The China business process outsourcing market is projected to grow at a CAGR of 11.8% from 2024 to 2030. The increasing penetration of digital channels, mobile devices, and social networking platforms are collectively driving the demand for a seamless omnichannel business process outsourcing market in this country.
• The business process outsourcing market in Japan is projected to grow at a CAGR of 10.1% from 2024 to 2030.
• The India business process outsourcing market is projected to grow at a CAGR of 12.7% from 2024 to 2030.
• The business process outsourcing market in Europe is growing significantly at a CAGR of 9.9% from 2024 to 2030. Government bodies in Europe are creating multi-channel service delivery models that enable seamless communication across numerous digital and physical interfaces.
• The UK business process outsourcing market is growing significantly at a CAGR nearly of 10% from 2024 to 2030.
• The business process outsourcing market in Germany is growing significantly at a CAGR of 10.9% from 2024 to 2030.
• The France business process outsourcing market is growing significantly from 2024 to 2030. There have been increasing investments in digital infrastructure, broadband connection, and technology adoption initiatives.
• The business process outsourcing market in the Middle East & Africa is anticipated to witness significant growth at a CAGR of 7.2% from 2024 to 2030.

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Business Process Outsourcing Market Segmentation

The report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global business process outsourcing market report based on the service type, outsourcing type, deployment, end-use, and region.

Service Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Finance & Accounting
• Human Resource
• KPO
• Procurement & Supply Chain
• Customer Services
• Sales & Marketing
• Logistics
• Training and Development Outsourcing
• Others

Outsourcing Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Onshore
• Nearshore
• Offshore

Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

• On premise
• Cloud

End-use Outlook (Revenue, USD Billion, 2018 - 2030)

• BFSI
• Healthcare
• Manufacturing
• IT & Telecommunications
• Retail
• Government & Defense
• Others

Region Outlook (Revenue, USD Billion, 2018 - 2030)

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa (MEA)

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