Global Business Process Outsourcing Market – Dynamics

Cost Competition

Competition in various industries across the globe concerning cost has increased exponentially. Asia Pacific with its cheap labor and operational cost has disrupted many industries such as semiconductors and chemicals. Business process outsourcing enables transfer of front office as well as back office work to a third-party company to eliminate the extra in-house cost. The overall cost to company can be reduced and companies can prioritize the business significantly. The overall benefits at the macro level is driving the growth of business process outsourcing.. 

Access to Specialized Resources and Skills

One of the major driving factors of business process outsourcing is it empowers a company to gain specialized expertise in its non-major business segments. This enables the company to gain access to more opportunities through specialization and also helps it to focus on primary objectives as well as prioritize work more efficiently.

Low Adoption among SMEs

Business process outsourcing increases the fixed cost in terms of what business enterprises need to pay to the outsourcing partner. A fixed monthly/quarterly/annual payment has to be made even in the event of no usage of the service. Hence, small & medium enterprises resist from adopting business process outsourcing due to increase in the fixed cost as well as total cost.

business process outsourcing market

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North America to Dominate the Global Business Process Outsourcing Market

In terms of region, the global business process outsourcing market can be divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America is expected to dominate the business process outsourcing market during the forecast period due to strong adoption rate of outsourcing or rental models by business enterprises.

COVID-19 Impact on the Global Business Process Outsourcing Market

The COVID-19 pandemic is expected to moderately impact the global business process outsourcing market for a short-term period. The economic depression due to lockdown and shut down of enterprises across the globe has led to low investment in outsourcing activities as this increases the additional fixed cost of companies.

business process outsourcing market 1

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Global Business Process Outsourcing Market – Dynamics

Cost Competition

Competition in various industries across the globe concerning cost has increased exponentially. Asia Pacific with its cheap labor and operational cost has disrupted many industries such as semiconductors and chemicals. Business process outsourcing enables transfer of front office as well as back office work to a third-party company to eliminate the extra in-house cost. The overall cost to company can be reduced and companies can prioritize the business significantly. The overall benefits at the macro level is driving the growth of business process outsourcing.. 

Access to Specialized Resources and Skills

One of the major driving factors of business process outsourcing is it empowers a company to gain specialized expertise in its non-major business segments. This enables the company to gain access to more opportunities through specialization and also helps it to focus on primary objectives as well as prioritize work more efficiently.

Low Adoption among SMEs

Business process outsourcing increases the fixed cost in terms of what business enterprises need to pay to the outsourcing partner. A fixed monthly/quarterly/annual payment has to be made even in the event of no usage of the service. Hence, small & medium enterprises resist from adopting business process outsourcing due to increase in the fixed cost as well as total cost.

North America to Dominate the Global Business Process Outsourcing Market

In terms of region, the global business process outsourcing market can be divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America is expected to dominate the business process outsourcing market during the forecast period due to strong adoption rate of outsourcing or rental models by business enterprises.

COVID-19 Impact on the Global Business Process Outsourcing Market

The COVID-19 pandemic is expected to moderately impact the global business process outsourcing market for a short-term period. The economic depression due to lockdown and shut down of enterprises across the globe has led to low investment in outsourcing activities as this increases the additional fixed cost of companies.

business process outsourcing market 2

Global Business Process Outsourcing Market – Competition Landscape

  • In May 2019, IBM Corporation and Vodafone-Idea signed a five year technology outsourcing contract worth US$ 700-800 Mn. The five-year strategic collaboration with IBM opened new opportunities for Vodafone-Idea to partner together in domains such as cloud, AI, and IoT.

IBM Corporation

Incorporated in 1911, IBM manufactures and sells computer hardware and software and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology. The company operates through five segments: Cognitive Solutions, Global Business Services (GBS), Technology Services & Cloud Platforms, Systems, and Global Financing.

Global Business Process Outsourcing Market: Segmentation

The global business process outsourcing market can be segmented based on:

  • Enterprise Size
  • Industry
  • Region

Global Business Process Outsourcing Market, by Enterprise Size

Based on enterprise size, the global business process outsourcing market can be divided into:

  • Small & Medium Enterprise
  • Large Enterprise

Global Business Process Outsourcing Market, by Industry

In terms of industry, the global business process outsourcing market can be segregated into:

  • Banking, Financial Services & Insurance
  • Telecom & Information Technology (IT)
  • Manufacturing
  • Construction
  • Wholesale Distribution
  • Non-profit Organizations
  • Chemicals
  • Food and Beverage
  • Retail
  • Others (Hospitality, Government, and Public Sector, etc.)

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Business Process Outsourcing Market

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