Business Process Outsourcing - North America

North America

The projected revenue for the Business Process Outsourcing market in North America is set to reach US$160.10bn in 2024.
This represents a significant growth potential for the industry in the coming years.
It is expected that the market will continue to expand at a compound annual growth rate (CAGR) of 4.12% between 2024 and 2029.
This growth trajectory will result in a market volume of US$195.90bn by 2029.
Furthermore, the average Spend per Employee in the Business Process Outsourcing market is estimated to reach US$0.63k in 2024.
This indicates the value and importance of the services provided by the industry.
In terms of global comparison, it is anticipated that United States will generate the highest revenue in the Business Process Outsourcing market.
Specifically, United States is projected to generate US$146.30bn in 2024.
This highlights the strong position of the United States as a major player in the industry.
North America is a leading hub for Business Process Outsourcing in the IT Services market, attracting global companies for cost-effective and high-quality services.

Key regions: China, Netherlands, Japan, Brazil, Germany

Market

Region

Region comparison

Currency

Analyst Opinion

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.

Methodology

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.