Business Process Outsourcing Market Size, Share, and Trends 2025 to 2034

Business Process Outsourcing Market Size and Forecast 2025 to 2034

The global business process outsourcing market size was calculated at USD 315.46 billion in 2024 and is predicted to reach around USD 840.60 billion by 2034, expanding at a CAGR of 10.30% from 2025 to 2034. The growing acceptance of BPO services in telecommunication and IT services is raising the demand for the market.

Business Process Outsourcing Market Key Takeaways

• North America dominated the global market with the largest market share of 36% in 2024.
• Asia Pacific is projected to expand at the notable CAGR during the forecast period.
• By service type, the customer services segment has held the largest market share in 2024.
• By service type, the human resource services segments is estimated to be the fastest-growing segment during the forecast period.
• By end use, the IT and telecommunications segment captured the biggest market share in 2024.
• By end use, the BFSI segment is expected to grow at a significant CAGR from 2025 to 2034.

Role of AI in the Business Process Outsourcing Market

With features such as optimization and automation, artificial intelligence enhances several business operations, resulting in improved efficiency, enhanced customer experience, and decreased charges. It has tools like robotic process automation that help with repetitive tasks and automate routines such as customer queries, data entry, and invoice processing. It decreases the possibility of human error, which helps accelerate the process. By introducing virtual assistants and chatbots to this market, AI can provide support at any time to resolve customers’ inquiries.

U.S. Business Process Outsourcing Market Size 2025 to 2034

The U.S. business process outsourcing market was exhibited at USD 130.84 billion in 2024 and is projected to be worth around USD 351.59 billion by 2034, growing at a CAGR of 10.39% from 2025 to 2034.

North America region accounted market share of 36% in 2024. The increased adoption of cloud enablement and digital services, which necessitate frequent assistance and maintenance for corporate operations, was related to the increase in growth.

Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the forecast period. The government entities are likely to make major expenditures in infrastructure development, which will assist to improve the region’s existing business process outsourcing ecosystems.

Business Process Outsourcing Market  Growth Factors

• Many organizations don’t have enough resources to fulfill their tasks and projects. So, they hire third parties who accomplish assigned tasks in a given period. This is known as business process outsourcing.
• Business process outsourcing is based on contracts for a specific period. There are varieties of business processes that can be outsourced. Those business processes are defined as marketing, human resources, accounting, supply chain management, and customer support and service.
• Small-scale organizations have started outsourcing their processes. This is creating prospects for the growth of the global business process outsourcing market. 
• The increased growth of the business process outsourcing market will be driven by increasing competitiveness from new outsourcing sites, as well as pressure on businesses to run more cost-effectively.
• The low-wage occupations in the business process outsourcing market will continue to be threatened by automation.
• Technological advancements and innovation are helping organizations to carry out their business effectively and efficiently.
• Robotics technology is becoming one of the prominent technologies in the global business process outsourcing market. Robotics technology helps improve quality and performance and also helps save money.
• The countries where work costs are low are the major contributors to the expansion of the business process outsourcing market. The fact is that low-cost countries have cheaper rates of work and readily available resources.

Market Scope

The cost control is one of the main advantages of business process outsourcing. In most cases, third party business process outsourcing services are less expensive than hiring individuals to perform it in-house. There are also a variety of cost-cutting opportunities in terms of international tax methods and the cost of establishing services in a particular country. Another advantage is that in-house staff may concentrate on core operations rather than having to handle all human resources and payroll work, or whatever else is outsourced.

The security of business process outsourcing is a major problem for the growth of the business process outsourcing market. Many businesses process outsourcing arrangements need the organization handing over essential or sensitive data to the supplier to a great extent. As the supplier has access to a portion of their data supply chain, they must trust the vendor to a degree. The compliance with national or industry standards is also an issue that comes up from time to time.

Another issue with the business process outsourcing is the amount of control clients must hand over the third-party providers. The cost barriers, where third party service businesses abruptly boost the cost of services owing to some benchmark, are a source of concern.

When businesses refer to business process outsourcing firms, they frequently speak to the kind of business functions and tasks that will be outsourced. The business process outsourcing services are classified into two categories based on the demands of the firm. Those two categories are back-office outsourcing and front office outsourcing.

The back-office outsourcing is a type of outsourcing that focuses on in-house business functions such as data collection, internet research, data entry, order processing, data analysis, quality assurance, payment processing, billing, and information technology services. The front office business process outsourcing refers to the outsourcing of customer facing tasks like sales, marketing, customer service, technical support, and grievance redressal.

Service Type Insights

In 2024, the customer services segment accounted revenue share of 33%. The growing number of service centers throughout the world that requires both online and offline technical help is responsible for the customer services segment’s strong market share.

The human resource services segment, on the other hand, is predicted to develop at the quickest rate in the future years. The increasing demand for resources across several sub-segments such as recruiting and relocation, payment processing, and administration is projected to help the segment grow.

End Use Insights

The IT and telecommunications segment accounted revenue share of 36% in 2024. The rise in the number of IT companies and the rising industrialization are both contributing to the segment’s growth. Several telecommunications procedures are being outsourced by telecom firms around the globe in order to lower their overall expenses. Various business tasks are outsourced by telecom enterprises.

The BFSI segment is fastest growing segment of the business process outsourcing market in 2022. The business process outsourcing has long been a reliable tool for improving the cost efficiency of financial institutions’ operations, the quality of their services, and the flexibility of their business processes.

Business Process Outsourcing Market  Companies

• Tech Mahindra Limited
• HCL Technologies Limited
• Tata Consultancy Services Limited
• IBM Corporation
• Wipro Limited
• NCR Corporation
• Infosys Limited
• Invensis Technologies Pvt. Ltd
• Unity Communications
• Plaxonic Technologies

Recent Developments

• In February 2024, Acquire BPO announced the launch of its new division, Acquire.AI. Acquire.AI stands poised to transform industries by assisting businesses in recognizing, prioritizing, and implementing tailored solutions for improved business efficiency, robust growth, and enhanced customer experiences.
• In March 2024, AnyMind Group announced the launch of BPaaS for Cross-Border Commerce solutions. It leverages the company’s proprietary technology and operations services that have been established across the Asia Pacific and Middle East regions whilst tapping on the company’s local networks of publishers and creators.

Segments Covered in the Report

By Service Type

• Finance & Accounting
• Human Resource
• KPO
• Procurement
• Customer Services
• Others

By End Use

• BFSI
• Healthcare
• Manufacturing
• IT & Telecommunications
• Retail
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa