Business Process Outsourcing - North America

Revenue in the Business Process Outsourcing market is projected to reach US$160.10bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.11%, resulting in a market volume of US$195.90bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$627.60 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 North America has been increasing steadily over the years, with the region being a key player in the global BPO market.

Customer preferences: North American businesses are increasingly outsourcing non-core business functions to third-party service providers, allowing them to focus on their core competencies. This trend is driven by the need to reduce operational costs, increase efficiency, and improve overall business performance. Additionally, businesses are seeking BPO providers that can offer a range of services, including customer service, IT support, finance and accounting, human resources, and supply chain management.

Trends in the market: One of the key trends in the North American BPO market is the increasing adoption of automation and artificial intelligence (AI) technologies. BPO providers are leveraging these technologies to streamline processes, reduce costs, and improve service delivery. For example, AI-powered chatbots are being used to handle customer queries and support requests, while robotic process automation (RPA) is being used to automate repetitive tasks.Another trend in the market is the growing demand for nearshore outsourcing. Businesses are increasingly looking to outsource to countries in close proximity to North America, such as Mexico and Canada, due to their lower labor costs, similar time zones, and cultural similarities. This trend is expected to continue as businesses seek to reduce costs while maintaining high levels of service quality.

Local special circumstances: The BPO market in North America is highly competitive, with a large number of domestic and international service providers operating in the region. Additionally, the region has a highly skilled workforce, which makes it an attractive destination for BPO providers. However, the region also faces challenges such as rising labor costs, increasing competition from emerging markets, and changing government policies.

Underlying macroeconomic factors: The North American BPO market is influenced by a range of macroeconomic factors such as economic growth, political stability, and technological advancements. The region has a stable political environment and a highly developed technological infrastructure, which makes it an attractive destination for BPO providers. Additionally, the region has a large and growing middle class, which is driving demand for BPO services in areas such as customer service and IT support. However, the region also faces challenges such as rising labor costs, changing government policies, and increasing competition from emerging markets.

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.