North America Business Process Outsourcing (BPO) Market, By Outsourcing Type (Offshore, Nearshore, and Onshore), Service (Voice Processing, Telemarketing Services, Image Editing Services, Virtual Staffing Services, 3D Visualization Services, and Others) Application (Customer Care, Finance and Accounting, Talent and HR Services, Sales and Marketing, Sourcing, Procurement & Supply Chain, Facilities and Administration, Product Engineering, Training, and Others), Deployment Mode (On Premise, and Cloud), Organization Size (Large Enterprises, and SMEs), Ownership (Captive, and Third Party), Outsourcing Approach (Best-Shore, Bundled Services, Contract Based, and Fee For Service), End User (BFSI, IT and Telecommunication, Healthcare, Manufacturing, Retail & E-commerce, Government & Defense, Transportation and Logistics, Travel and Hospitality, Education, Energy and Utilities, and Others) - Industry Trends and Forecast to 2030.
North America Business Process Outsourcing (BPO) Market Analysis and Insights
Market players are expanding their service offerings in order to acquire a competitive advantage. The North America market is rising steadily as a result of the expanding industrial sector, infrastructure development, and technical improvements in developing countries. The adoption of IoT, and AI technologies is considerably driving the North America market. Increased government backing and investment in rebuilding the old power transmission and distribution system is one element driving the market's rapid rise.
During the forecast period, manufacturers involved in the business process outsourcing (BPO) market likely benefit significantly from increased awareness of the advantages of Business process outsourcing and investments in various organizations. Data Bridge Market Research analyses that the North America business process outsourcing (BPO) market will grow at a CAGR of 8.3% during the forecast period of 2023 to 2030.
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Report Metric |
Details |
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Forecast Period |
2023 to 2030 |
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Base Year |
2022 |
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Historic Years |
2021 (Customizabe to 2015-2020) |
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Quantitative Units |
Revenue in Thousand, Volumes in Units, Pricing in USD |
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Segments Covered |
By Outsourcing Type (Offshore, Nearshore, and Onshore), Service (Voice Processing, Telemarketing Services, Image Editing Services, Virtual Staffing Services, 3D Visualization Services, and Others) Application (Customer Care, Finance and Accounting, Talent and HR Services, Sales and Marketing, Sourcing, Procurement & Supply Chain, Facilities and Administration, Product Engineering, Training, and Others), Deployment Mode (On Premise, and Cloud), Organization Size (Large Enterprises, and SMEs), Ownership (Captive, and Third Party), Outsourcing Approach (Best-Shore, Bundled Services, Contract Based, and Fee For Service), End User (BFSI, IT and Telecommunication, Healthcare, Manufacturing, Retail & E-commerce, Government & Defense, Transportation and Logistics, Travel and Hospitality, Education, Energy and Utilities, and Others) |
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Countries Covered |
U.S., Canada, Mexico |
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Market Players Covered |
Callgest.net, DISYS, Xterna, Grupo CMC., CPM International, Bukit BPO by BC, TDCX, WebhelpIBM Corporation, Cognizant, Capgemini, Genpact, ADP, Inc., Wipro Limited, Accenture, Tata Consultancy Services Limited, HCL Technologies Limited, NTT DATA, Inc., WNS (Holdings) Ltd., Conduent, Inc., NCR Corporation, Tech Mahindra Limited, Infosys Limited, Triniter, Concentrix Corporation, TTEC, SunTec Web Services Pvt. Ltd., Invensis Technologies Pvt. Ltd., Plaxonic Technologies, Sodexo, ExlService Holdings, Inc. and Affiliates., Intetics Inc., AMDOCS, CBRE, Unity Communications, eNoah, Helpware Octopus Tech, Aidey, Intersa, and CBRE among others |
Market Definition:
Business process outsourcing (BPO) is the practice of contracting or outsourcing a specific work process or process to an external service provider for the required function. The services can include payroll, accounting, telemarketing, data recording, social media marketing, customer support, and more. BPO can be done for non-core business activities such as recruiting, managing finance and payroll, supervising procurement, and providing training among others. Business process outsourcing can be provided in various domains, including Talent and HR Services s, sales & marketing, supply chain, finance & accounting, education & training, and payment among others. Outsourcing necessary processes such as recruiting, accounts payable, managing procurement, or various utility bill processing help take care of important yet repetitive tasks that need to perform very frequently or on a daily basis and need to free your internal resources to focus on your core competency. As organizations streamline and improve their services or products, they can gain business and scale up their operations, which then helps them to increase their revenue.
North America Business Process Outsourcing (BPO) Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail as below:
Drivers
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Rising customer focus toward enhanced efficiency, time effectiveness, and cost efficiency
Business process outsourcing has become an easy and cost-effective practice used widely in today's digitization world. It further enables business owners to reduce the burden of work and concentrate on other core aspects of their operation. Developed countries such as Japan, U.K., U.S. among others, always prefer outsourcing for their business processes. The ongoing digital revolution has made companies switch from traditional business process services (BPS) towards technological aspects such as business process as a service (BPaaS) to succeed. There is a huge difference in the wage/pay patterns of the western developed and developing countries. The kind of work is done in the west for a very high price to obtain a considerably cheaper rate in developing countries such as the Philippines, India, and Japan, with a difference of up to 60%. BPO allows gain flexibility in the workforce and avoids the need to hire. In addition to the legal obligations relating to the employment contract, the company does not have to bear any expenses related to the recruitment of an employee.
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Growing preference for cloud technology and its significance on process automation
Digital technologies have created new opportunities for business leaders. Traditional operations and business process outsourcing models are reinventing into more intelligent workflows using automation, Artificial Intelligence (AI), the Internet of Things (IoT), cloud, and other new technologies. Businesses must constantly evolve to more intelligent, fully orchestrated processes that consider clients, employees, suppliers, and business partners to remain relevant and continue their growth.
Opportunities
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Focus on multi-workflow scheduling of business
Earlier, automated workflows were reserved only for wealthy organizations willing to invest heavily in complex CRM and ERP systems. But, the advent of cloud technology has turned this concept on its head. As the technology transformed, people started leveraging its power to automate their complex workflow processes to achieve process integration. BPO has dramatically expanded in recent years as companies see the benefit in reducing costs, improving efficiency and customer service, and enabling high growth while working with limited resources.
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Emergence of digital technologies, namely AI, IoT, and cloud computing
Cloud computing has turned out to be a major driving force for digital transformation across industries. It provides unparalleled agility and reduces operational and management overheads. Several governments and businesses are starting to leverage this technology and are slowly gaining popularity across several verticals. The potential has become so open that the notion of the cloud is limited to only IT functions has completely changed. This is further integrated with other technologies such as artificial intelligence (AI), the internet of things (IoT), and edge computing, among others.
Restraints
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Growing concerns regarding data security and privacy concern
Nowadays, data security has become more important than ever, leaving many people curious about how BPO companies handle data security. While business process outsourcing is increasing in popularity, many organizations fear working with a third-party BPO company could put their data at risk.
Challenges
- Lack of skilled workforce and high attrition rate
Attrition and lack of skilled professionals are perhaps one of the biggest challenges faced by most business process outsourcing (BPO) companies. Attrition in the business process outsourcing (BPO) sector has terrible effects on the organization. The high attrition costs increase the costs to the organization considerably. The more people leave an organization or company, the more it drains on the company's resources, such as recruitment expenses, training, orientation expenses, and time. The high attrition rate adversely affects the productivity of the organization.
COVID-19 Impact on North America Business Process Outsourcing Market
COVID-19 has had a negative impact on practically every business and industry. The commercial circumstances that COVID-19 has created are unprecedented, and various organizations are scrambling to react.
Covid-19's influence on the BPO business is broad and multifaceted, and many BPO firms are still undertaking changes to suit its consequences. The BPO sector is extremely fortunate to be able to operate digitally, allowing BPO firms to continue to operate with minimal health and safety risks for employees.
However, this does not imply that the BPO industry adjustments have been simple to implement. Not every BPO organization was built to allow team members to work remotely. In truth, the majority of BPO firms operate from an office with dedicated equipment, software, and hardware.
BPO firms have implemented a number of technological and digital innovations in order to maintain excellent virtual performance. The influence of COVID-19 on the BPO business is far-reaching and important, and we'll go through some of the most significant changes in more detail below.
Recent Development
- In January 2023, Macau's CTM collaborated with Amdocs to Launch its Commercial 5G Services Across the Region. The commercial launch of CTM 5G is evidence of coordinated efforts to hasten the city's digital transformation.
North America Business Process Outsourcing (BPO) Market Scope
The North America business process outsourcing (BPO) market is segmented on the basis of outsourcing type, service, application, deployment mode, organization size, ownership, outsourcing approach, and end user. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Outsourcing Type
- Offshore
- Onshore
- Nearshore
On the basis of outsourcing type, the market is segmented into offshore, onshore, and nearshore.
Service
- Voice Processing
- Telemarketing Services
- Image editing services
- Virtual staffing Services
- 3d visualization Services
- Others
On the basis of service, the market is segmented into voice processing, telemarketing services, image editing services, virtual staffing services, 3D visualization services, and others.
Application
- Customer Care
- Finance and Accounting
- Talent and HR Services
- Sales and Marketing
- Sourcing, Procurement & Supply Chain
- Facilities and Administration
- Product Engineering
- Training
- Others
On the basis of application, the market is segmented into customer care, finance and accounting, talent and HR services, sales and marketing, sourcing, procurement & supply chain, facilities and administration, product engineering, training, and others.
Deployment Mode
- Cloud
- On Premise
On the basis of deployment mode, the market is segmented into cloud and on premise.
Organization Size
- Large Enterprises
- SMEs
On the basis of organization size, the market is segmented into large enterprises, and SMEs.
Ownership
- Captive
- Third Party
On the basis of ownership, the market is segmented into captive and third party.
Outsourcing Approach
- Contract Based
- Bundled Services
- Best-Shore
- Fee for Service
On the basis of outsourcing approach, the market is segmented into contract based, bundled services, best-shore, and fee for service.
End User
- IT and Telecommunication
- BFSI
- Manufacturing
- Healthcare
- Government & Defense
- Retail & E-Commerce
- Transportation and Logistics
- Travel and Hospitality
- Energy and Utilities
- Education
- Others
On the basis of end-user, the market is segmented into IT and telecommunication, BFSI, manufacturing, healthcare, government & defense, retail & e-commerce, transportation and logistics, travel and hospitality, energy and utilities, education, and others.
North America Business Process Outsourcing (BPO) Market Regional Analysis/Insights
North America business process outsourcing (BPO) market is analyzed, and market size insights and trends are provided by outsourcing type, service, application, deployment mode, organization size, ownership, outsourcing approach, and end user.
The countries covered in North America business process outsourcing (BPO) market report are U.S., Canada, and Mexico.
In 2023, U.S. is expected to dominate the North America business process outsourcing (BPO) market due to the market due to the growing number of new businesses.
The region section of the report also provides individual market-impacting factors and changes in regulations in the market domestically that impact the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, disease epidemiology, and import-export tariffs are some of the major pointers used to forecast the market scenario for individual countries. Also, the presence and availability of North America brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of sales channels are considered while providing forecast analysis of the country data.
Competitive Landscape and North America Business Process Outsourcing (BPO) Market Share Analysis
North America business process outsourcing (BPO) market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, North America presence, production sites and facilities, production capacities, company strengths and weaknesses, solution launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus related to North America business process outsourcing (BPO) market.
Some of the major players operating in North America business process outsourcing (BPO) market are DISYS, Xterna, Grupo CMC., CPM International, Bukit BPO by BC, TDCX, WebhelpIBM Corporation, Cognizant, Capgemini, Genpact, ADP, Inc., Wipro Limited, Accenture, Tata Consultancy Services Limited, HCL Technologies Limited, NTT DATA, Inc., WNS (Holdings) Ltd., Conduent, Inc., NCR Corporation, Tech Mahindra Limited, Infosys Limited, Triniter, Concentrix Corporation, TTEC, SunTec Web Services Pvt. Ltd., Invensis Technologies Pvt. Ltd., Plaxonic Technologies, Sodexo, ExlService Holdings, Inc. and Affiliates., Intetics Inc., AMDOCS, CBRE, Unity Communications, eNoah, Helpware Octopus Tech, Aidey, Intersa, and CBRE among others.
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