BPO is an abbreviation for business process outsourcing. It is contracting another firm to do a procedure that the company needs to function. To put it simply, when a company hires a third party to manage its non-core business operations, they engage in business outsourcing. Here are the latest BPO statistics, trends, and facts:
General BPO Statistics
- The worldwide business process outsourcing market was estimated at $245.9 billion in 2021 and is predicted to increase at a 9.1% compound annual growth rate (CAGR) from 2022 to 2030. (Grandviewresearch, 2021)
- The military industry accounts – the most significant outsourced transactions — earned $100 billion in income. (City University of New York, 2009)
- 40% of help desk employment in the banking business is outsourced. (Credit Donkey, 2015)
- Before the pandemic, the worldwide outsourcing market was worth $92.5 billion. (Statista, 2019)
- Every year, around 300,000 jobs are outsourced from the United States. (Zippia, 2022)
- To improve outsourcing, more than 93% of firms are contemplating or have already implemented the use of cloud services. (Deloitte, 2018)
- Data security is a key issue for 68% of outsourced organizations contemplating cloud computing. (Digitalguardian, 2020)
- The global financial services outsourcing market is valued at more than $130 billion. (Fortunly, 2021)
- 29% of businesses with fewer than 50 employees outsource, compared to 66% with 50 or more employees. (Fortunly, 2021)
- 24% of small businesses outsource to improve efficiency. (Fortunly, 2021)
- The most commonly outsourced jobs in small businesses are accounting and IT services. (Clutch, 2021)
Why Do Companies Outsource Processes?
What are the Outsourced Business Processes?
- 37% of businesses outsource their accounting functions. (Clutch, 2019)
- IT services are the largest outsourced process, accounting for 37% of all outsourced operations. (Clutch, 2019)
- Following accounting and IT services, 34% of firms outsource Digital Marketing tasks. (Clutch, 2019)
Outsourcing Statistics that Show the Impact of BPOs
- Africa, the Middle East, and Europe account for most BPO income worldwide. During the fiscal year 2017-19, India received the most contracts in Africa, the Middle East, and Europe. (Data Bridge Market Research, 2021)
- Accenture alone paid $1.7 billion to BPOs worldwide in 2017. (Accenture, 2017)
- Manpower Group earned $22 billion in worldwide BPO revenue in 2018. According to Statista, 25% of it originated in the United States of America. (Statista, 2020)
- In 2016, the Philippines supported 16 of 20 offshore customer service initiatives. The country boasts an extensive reservoir of English-speaking talent. (ASEAN Briefing, 2017)
- With a literacy rate of 95%, the Philippines is presently the most popular destination for customer service outsourcing. (UNESCO report, 2018)
Concerns About Outsourcing
- When attempting to move to cloud infrastructure, 19.68% of businesses encounter problems with BPOs. (Customerthink, 2020)
- 35% of firms are always concerned about the data exchanged with outsourcing agencies. (Customerthink, 2020)
- Despite their reservations, 44% of chief intelligence officers are eager to interact and exchange data with outsourcing firms. (Customerthink, 2020)
Statistics Showing a Bright Future for BPOs
- 65% of organizations that use BPOs for application hosting are eager to increase their outsourcing investment. (Customerthink, 2020)
- In India alone, the information technology BPO business generated $154 billion in revenue in 2017-18. (Brandongaille, 2020)
- 57% of companies use business process outsourcing to concentrate on core issues, operations, and activities (Statista, 2021).
- Approximately 54% of businesses employ at least one third-party support staff to communicate with consumers (Fortunly, 2021).
- Currently, 74% of firms use the business process outsourcing industry for their information technology needs. (Statista, 2021)
- 65% of firms that utilize BPO for application hosting expect to raise their spending in the coming year. (Techtarget, 2020)
Human Resources & Customer Service
- Today, more than 40% of banking and financial institution support desk employment is outsourced. (Deloitte, 2021)
- 24% of businesses say that outsourcing HR and customer service allows them to focus on core operations. (Fortunly, 2021)
- Due to today’s business requirements, organizations spend significant time and money on accounting operations. As a result, accounting is the second most outsourced emphasis area, with 37% of organizations outsourcing their accounting procedures to BPO. (Clutch, 2019)
These BPO statistics show that businesses see outsourcing as more efficient than employing and paying a full team. In some cases, a more specialized organization can perform a business task better than the company can handle it in-house.
Business Process Outsourcing Providers (BPO)
Business Process Outsourcing Providers (BPO)
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