Business Process Outsourcing - Central & Western Europe

Revenue in the Business Process Outsourcing market is projected to reach US$83.66bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.57%, resulting in a market volume of US$104.60bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$482.80 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) in Central & Western Europe has been steadily increasing in recent years.

Customer preferences: Companies in Central & Western Europe are increasingly looking to outsource non-core business processes such as customer service, finance and accounting, and human resources. This allows them to focus on their core competencies and reduce costs. Additionally, companies are looking for BPO providers that can offer customized solutions and high-quality services.

Trends in the market: The BPO market in Central & Western Europe is characterized by a high degree of competition among service providers. As a result, many providers are expanding their service offerings to include more specialized services such as data analytics and automation. Additionally, there is a trend towards nearshoring, as companies in the region look to outsource to nearby countries with lower labor costs.Germany is the largest market for BPO services in Central & Western Europe, followed by the United Kingdom and France. In Germany, there is a particular demand for finance and accounting outsourcing, while in the UK, customer service outsourcing is a popular choice.

Local special circumstances: One of the unique challenges in the BPO market in Central & Western Europe is the language barrier. Many companies require services in multiple languages, which can be difficult to find in a single provider. Additionally, there are strict data protection regulations in the region, which can make it difficult for companies to outsource certain processes.

Underlying macroeconomic factors: The growth of the BPO market in Central & Western Europe can be attributed to several macroeconomic factors. The region has a highly skilled workforce and a stable political and economic environment, which makes it an attractive location for outsourcing. Additionally, the region has a large number of small and medium-sized enterprises (SMEs) that are looking to reduce costs and improve efficiency through outsourcing. Finally, the rise of digital technologies has made it easier and more cost-effective for companies to outsource processes to other countries.

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.