Business Process Outsourcing Business Process Outsourcing (BPO) Global Market

2025: Global Business Process Outsourcing Market Size Exceeded $327 Billion for the Year

In 2025, costs in the global market outsourcing business processes (Business Process Outsourcing, BPO) are estimated at $327.01 billion. More than a third of this amount fell on the North American region. This data is provided in a Fortune Business Insights study.

The BPO model involves the transfer of individual internal functions of the company to an external contractor who specializes in performing the corresponding tasks. This approach allows the customer organization to focus on core activities, optimize costs, and improve efficiency. Common examples of outsourcing are accounting, human resources administration, IT support, customer call processing, and marketing.

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One of the market drivers indicates the desire of enterprises to reduce costs. Outsourcing reduces fixed costs of salaries, taxes, social contributions, sick leave and leave. Using BPO services is often more profitable than attracting additional employees. Thus, there is no need to purchase office equipment and software. Moreover, in the case of outsourcing, companies gain access to the services of highly qualified specialists, which is not available when hiring to staff. The transfer of tasks to professionals leads to an increase in the quality of customer service, and therefore to a strengthening of the competitive position.

Artificial intelligence has a significant impact on the industry. Neural networks, as noted in the study, are transforming the BPO sector, providing automation of resource-intensive and repetitive tasks such as customer support, content creation and data processing. AI allows you to speed up the provision of services, improve personalization and the quality of service in general. This is achieved by introducing smart chatbots, predictive systems and adaptive control tools. By analyzing vast amounts of data and identifying hidden trends, AI helps make better decisions.

However, there are a number of factors that constrain the development of the market. The outsourcing model provides for the transfer of corporate data to a third party, which creates additional risks of leakage of confidential information. Business processes become dependent on an external organization, which can lead to failures and delays if the contractor fails to fulfill its obligations. Process control becomes less transparent, making it difficult to control their effectiveness.

Local and cloud sectors are distinguished by the way BPO solutions are deployed. The first provided the largest revenue in 2025 - $181.28 billion. By application, the market is segmented into BFSI (banking, financial services and insurance), healthcare, manufacturing, IT and telecommunications, retail, etc. BFSI accounted for the maximum costs - $81.34 billion. Geographically, North America leads with 36.6%, or $119.76 billion. Major industry players on a global scale are:

• Accenture;
• WNS;
• Teleperformance SE;
• TTEC Holdings;
• Wipro Limited;
• Cognizant;
• Infosys BPM;
• Transcom;
• Concentrix;
• HCL Technologies;
• Foundever;
• Alorica;
• Genpact;
• TaskUs;
• Sutherland;
• Conduent;
• EXL Service;
• Startek;
• Atento;
• Capita.

In 2026, the BPO market size is expected to reach $353.64 billion. Fortune Business Insights analysts forecast a Compound Percentage CAGR of 9.7% going forward. Thus, by 2034, costs could rise to $741.6 billion.^[1]

2014: Multi-Process HR Outsourcing

According to a September 2015 report by Everest Group on Multi-Process to outsourcing HR Outsourcing, this area outsourcing continued to grow steadily, up 4% in 2014, reaching $3.42 billion dollars globally. (MPHRO services include consulting and remuneration administration, system outsourcing, Human Resources Management payroll, recruitment, testing and training, etc.).

According to Everest Group, the Search and Hiring process category, which includes outsourcing the hiring process - (RPO - Recruitment Process Outsourcing), is changing dynamically, in accordance with the change in the labor market, and grew by 13% in 2014, reaching the size of $1.7 billion.

2012: Market Size $21.2 Billion (-3%)

2012 was not the most successful year for both the world and the European autorcing market. However, compared to the IT approval segment, which showed negative dynamics, the business process approval segment continues to grow.

According to the Information Services Group (ISG)^[2]the global autorcing market experienced a slight decline in the fourth quarter of 2012. This is evidenced by the data of the Global TPI Index study for the corresponding quarter, which analyzed commercial transactions with an annual contract value (ACV) of $5 million or more.

According to them, the total value of transactions concluded in the last three months of 2012 reached $4.8 billion, which is 27% lower than the same period in 2011 and 11% less than the third quarter of 2012.

In general, in 2012, the total volume of concluded outsourcing contracts amounted to $21.2 billion, which is 3% lower than the final value of 2011. In 2012, the largest contribution to the "piggy bank" of the market was made by mega-transactions (with an ACV indicator of $100 million or more), as well as the business process outsourcing segment. In addition, the Asia-Pacific market showed significant growth.

In total, 1,006 contracts were concluded in 2012, which is 13% less than in 2011, but still more than the average number of transactions calculated over the past 5 years. "Usually the results of the fourth quarter exceed the results of the third quarter, but in this situation this did not happen," said John Keppel, President of ISG.

In his opinion, part of the market decline in the fourth quarter is explained by the impact on the global economy of the US presidential election and Hurricane Sandy, so that October and November turned out to be the weakest months in 2012.

It is also interesting that a total of 8 mega-deals were concluded in the global outsourcing market in the fourth quarter of 2012 and only 34 such transactions in a year, with the last figure being the highest since 2006. Also, for the second year in a row, about 25% of mega-deals were concluded in emerging markets. However, the ACV indicator for mega-transactions fell by 50% compared to the fourth quarter of 2011 and by 24% compared to the third quarter of 2012, that is, they fell in price. The calculated ACV as a whole for 2012 for mega-transactions increased by 7% in annual comparison.

The business process outsourcing (BPO) segment in the fourth quarter amounted to $1.9 billion (-1% in annual terms), but in general in 2012 this segment grew by 14% to $7.9 billion. The IT outsourcing segment in the fourth quarter of 2012 turned out to be $2.9 billion (-37% in annual comparison), in general, in 2012 it fell by 11% to $13.3 billion. This is despite the fact that 650 IT autorcing contracts were concluded in 2012, which is a record value, and such a record has been achieved for the second year in a row.

The largest regional market remained America (both North and South) where transactions in the amount of $7.9 billion were concluded in 2012 (-3% by 2011). In the EMEA region, the total volume of transactions reached $10.2 billion (-12% compared to 2011). The volume of transactions concluded in the Asia-Pacific region amounted to $3.1 billion in 2012, which is 55% higher than in 2011.

2011: Gartner Forecasts

outsourcing business processes According to the company's forecasts, the global market will Gartner grow by 6.3% in 2011 and by another 5% in 2012. Consumer attention to this model is especially heated in emerging markets, where companies expect high growth rates in the future.

Meanwhile , the world's largest business process outsourcing market , the United States, has recently been showing uncertainty due to unfavorable economic conditions in the country, said Cathy Thornbohm, an analyst at the research firm.

At the same time, in general, companies, especially multinational ones, are turning to this model to reduce costs and adequately support business growth, she added. Especially noted is the growth of transactions in recruiting, customer data analytics and a number of other areas.

According to Gartner estimates, the business process outsourcing market in North America will grow more slowly than the global one: in 2011 it will increase by only 3.8%. The key vertical areas for the regional market until 2014 will be retail, healthcare, transport and manufacturing. As for horizontal segments, maximum growth is expected in the customer selection and CRM segments, as well as personnel management.

The business process outsourcing market in Western Europe will grow by 8.9% in 2011. Outsourcing of customer relations management, financial reporting and personnel management will be in particular demand. In continental Europe, outsourcing of payment transactions will be in demand, especially with support for transactions between countries, as well as outsourcing contact centers and specific banking processes. At the same time, the heterogeneous language landscape, specific labor law and trade unions make it difficult to adapt many types of outsourcing of business processes in the region.

The development of the outsourcing market in the Asia-Pacific region will remain positive: in 2011 it will grow by 17.9% in dollar terms. Gartner predicts high demand for outsourcing of customer relations, personnel, financial reporting, outsourcing of banking and financial services until 2015. Growth will be concentrated in key countries in the region such as India, Astralia and China. The key drivers will be the growth of the economy, the introduction of best practices and technologies, the acceleration of the launch of services to the market and the goal of improving the quality of service. The Japanese market alone will decline by 0.9% in 2011: the impact of the March cataclysms is still felt here.

In Latin America, the development of IT services is not so fast, but still, until 2015, the adaptation of business process outsourcing in the region will increase. First of all, due to the development of the business of global corporations here. In 2011, the local market will grow by 14.7% in dollar terms. Latin America will also receive significant investment from global service providers, which are increasing their presence in the region along with Asia and Eastern Europe.

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