Global Business Process Outsourcing (BPO) Market Size is Expected to Grow to $487.02 Billion by 2028

Global Business Process Outsourcing (BPO) Market Overview

According to Global Market Monitor, the global business process outsourcing (BPO) market size is expected to grow to $487.02 billion by 2028 with a CAGR of 6.03% from 2023 to 2028.

Business process outsourcing (BPO) is a company that specializes in a subset of outsourcing, including contracting operations and responsibilities for specific business or organizational processes to third-party service providers. BPO was originally applied solely to manufacturing entities, such as soft drink manufacturers that outsourced large segments of their supply chains, and now is also applied to the outsourcing of services.

North America Dominates the Market.

North America had the highest growth rate with a market share of 33% in 2022 and is expected to grow steadily over the forecast period. Due to the growing demand for BPO services from several tech giants in North America, the region is expected to maintain its dominance. Customization of service offerings to better meet individual needs, coupled with the increasing demand for cloud computing, is further expected to support regional growth. Similarly, the Europe market is also expected to see steady growth due to the availability of a skilled workforce, coupled with service quality and operational efficiency.

Market Drivers and Limitations

Since BPO can help enterprises save time and money and improve efficiency, so many enterprises apply BPO to maximize benefits when the scale of enterprises has developed to a certain extent. The rapid development of downstream industries leads to the growing demand for business process outsourcing. For example, general jobs, pharmaceutical research and development, IT engineering jobs, etc. benefited from the high industry boom and the company’s superior position to achieve rapid growth. As the demand for business process outsourcing continues to expand, research on them has gradually deepened. In recent years, business process outsourcing services have developed towards specialization, serialization, functionality, and high quality.

With the development of social media, most SMEs rely on cloud technology, and BPO provides more professional and technical services, such as web design, human resources, and accounting services. This has led to increased investment in BPO. With the increasing investment in BPO, it will bring important opportunities for the development of the industry.

Drivers	Increasing focus on workload management and surge in outsourcing of back-office operations.
	Business process outsourcing BPO is very cost-effective for client companies.
	Growing Demand From Downstream Customers
	Increasing Investment in BPO
	New Low-cost Markets Emerge.
Limitations	Focus on security and privacy will limit global market growth.
	Underestimating service costs will reduce company profitability.
	Information Security