Business Process Outsourcing - Canada

Revenue in the Business Process Outsourcing market is projected to reach US$8.28bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.62%, resulting in a market volume of US$10.38bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$380.10 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 Business Process Outsourcing market in Canada has been experiencing steady growth in recent years.

Customer preferences: Canadian businesses are increasingly turning to Business Process Outsourcing (BPO) services to improve their operational efficiency and reduce costs. The most popular BPO services in Canada include customer service, IT support, and back-office operations such as accounting and human resources.

Trends in the market: One trend that is driving the growth of the BPO market in Canada is the increasing adoption of cloud-based technologies. This has enabled BPO providers to offer more flexible and scalable services to their clients. Another trend is the growing demand for multi-channel customer support, which has led to an increase in the number of BPO providers offering services such as social media management and chat support.

Local special circumstances: One of the unique challenges facing the BPO market in Canada is the country's bilingualism. Many Canadian businesses require BPO providers to offer services in both English and French, which can be a challenge for providers that are not based in Canada. Additionally, the Canadian government has strict data privacy regulations that must be adhered to by BPO providers operating in the country.

Underlying macroeconomic factors: The growth of the BPO market in Canada can be attributed to a number of underlying macroeconomic factors. These include the country's stable political and economic environment, its highly educated workforce, and its proximity to the United States, which is the world's largest market for BPO services. Additionally, the Canadian government has introduced a number of tax incentives and grants to encourage businesses to outsource their operations to Canadian BPO providers.

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.