Business Process Outsourcing - Asia

Revenue in the Business Process Outsourcing market is projected to reach US$84.08bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.51%, resulting in a market volume of US$109.90bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$40.02 in 2024.
In global comparison, most revenue will be generated United States (US$146.30bn in 2024).

Definition :
The Business Process Outsourcing (BPO) market refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers). A distinction is made between horizontal and vertical outsourcing. Horizontal BPO combines function-centric as well as cross-sector and cross-industry services, such as human resources management or payroll accounting. Vertical BPO, on the other hand, focuses on specialized services and is especially appealing to customers from the financial services industry, the healthcare sector, the manufacturing industry, or the retail sector.

Additional Information:

The Business Process Outsourcing market comprises revenues, revenue change, average spend per employee, and the market shares of the different business sectors. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include Accenture, Cognizant, Wipro, and IBM.

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Back office process outsourcing, such as Genpact, Concentrix, HCL Technologies, Sutherland Global Services, EXL Services, Remote Coworker, and TechSpeed
Front office process outsourcing, such as IBM Global Services, Hewlett Packard Enterprise (HPE), Sitel Group, Teleperformance, and Qualfon

Application outsourcing, such as ScienceSoft, Arcanys, and SumatoSoft
Administration outsourcing, such as Conduent, Genpact, and ADP (Automatic Data Processing)
Infrastructure outsourcing, such as IBM Global Technology Services, Wipro Infrastructure Engineering, and Cognizant Infrastructure Services

The demand for Business Process Outsourcing (BPO) services in Asia has been steadily increasing in recent years, driven by several factors such as cost savings, access to a large pool of skilled labor, and technological advancements.

Customer preferences: Many companies in Asia are increasingly looking to outsource non-core business functions such as customer service, finance and accounting, and human resources to specialized BPO service providers. This allows them to focus on their core competencies and reduce operational costs while maintaining high levels of service quality.

Trends in the market: In India, the BPO industry has been growing rapidly due to its large pool of English-speaking, highly educated workers, and cost advantages. The country has become a major hub for voice-based BPO services, particularly in the areas of customer service and technical support. However, there is a growing trend towards non-voice services such as data analytics, research, and software development.In the Philippines, the BPO industry has been expanding at a rapid pace, driven by the availability of a large pool of English-speaking workers, a favorable business environment, and government support. The country has become a major hub for voice-based services such as customer service, sales, and telemarketing. However, there is a growing trend towards higher value-added services such as animation, game development, and medical transcription.China has also emerged as a major player in the BPO market, driven by its large population, low labor costs, and improving infrastructure. The country has become a major hub for manufacturing-related services such as supply chain management and logistics. However, there is a growing trend towards higher value-added services such as research and development, engineering, and design.

Local special circumstances: In Malaysia, the BPO industry has been growing rapidly, driven by the availability of a large pool of skilled workers, a favorable business environment, and government support. The country has become a major hub for non-voice services such as data analytics, research, and software development.In Indonesia, the BPO industry is still in its early stages of development, but there is significant potential for growth. The country has a large population and a growing pool of skilled workers, but there are challenges related to infrastructure and government regulations.

Underlying macroeconomic factors: The growth of the BPO industry in Asia is also being driven by underlying macroeconomic factors such as increasing globalization, technological advancements, and changing business models. Companies are increasingly looking to outsource non-core functions to specialized service providers in order to reduce costs and improve efficiency. As a result, the BPO industry is expected to continue growing in Asia in the coming years.

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.