LONDON–(BUSINESS WIRE)–SpendEdge has been monitoring the global business process outsourcing services market and the market is poised to experience spend growth of more than USD 70 billion between 2018-2023 at a CAGR of over 7% during the forecast period. Request Free Sample Pages.
Read the 108-page research report with TOC and LOE on “The Global Business Process Outsourcing Services Market – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
Imposing challenges such as lack of technical expertise, supply chain complexities, and customer attrition are driving buyers across sectors to outsource such functions to support experts. This will act as one of the prominent growth drivers in the business process outsourcing services market. In a bid to deepen the focus on core activities, buyers from healthcare sectors are outsourcing functions such as medical billing and collection, medical coding services, payment posting, revenue cycle management services, and medical claims processing services. This will contribute to spend growth in this market during the forecast period.
APAC is one of the most sought-after outsourcing destinations. The prevalence of low wages and rent for office spaces allow suppliers the liberty to offer BPO services at competitive rates. In terms of spend share, India and the Philippines are the two competing regions. Business process outsourcing services suppliers in India are expanding to tier-2 and tier-3 cities to maintain low wages and offer the best industry prices to attract global clients.
Meanwhile, in the US, the demand for vertical BPOs is growing significantly owing to the requirements from the healthcare and airline industries. In Europe, automotive and telecommunication industries are among the major end-user segments of the business process outsourcing services market. Major Europe-based companies are reducing their number of employees to offset the rise in OPEX that results predominantly from the rise in wages, which will help the region sustain their market share.
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Insights into the market pricing trends
- Suppliers will witness a major hike in their OPEX owing to the shrinking pool of skilled professionals. This will compel them to increase their compensations to hire and retain skilled individuals. This is expected to pose a significant impact on the overall pricing structure in the business process outsourcing services market.
- Business process outsourcing services suppliers are increasing their investments in automation technologies such as robotics and AI to optimize their business operations. The increase in their OPEX is passed on to buyers in the form of higher service prices.
Insights into the supply market that will have potential impacts on your procurement strategy
- Most of the business process outsourcing services suppliers are increasing the adoption of self-service tools and virtual agents, and this is eliminating customers’ need to wait for human intervention to resolve issues. These tools also reduce waiting time for customers and consequently improve their satisfaction levels.
- Buyers can achieve cost savings by engaging with suppliers who are known to use Lean Six Sigma in their service operations. Using Lean Six Sigma methodology to optimize capacity utilization will allow the suppliers to maintain a high occupancy rate, thus provide services with optimum resource utilization. This will allow suppliers to avoid additional costs that arise during project overruns.
Some of the top business process outsourcing services suppliers enlisted in this report
- DXC Technology
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Some of the key topics covered in this report are:
- Business process outsourcing services market spend segmentation by region
- Business process outsourcing services supply market analysis
- Regional spend opportunity for business process outsourcing services suppliers
- Business process outsourcing services suppliers cost structure
- Total cost of ownership analysis in the business process outsourcing services market
- Business process outsourcing services pricing models analysis
- Category management objectives
- Cost saving opportunities in the business process outsourcing services market
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