Business leaders have new opportunities as digital technologies have developed. Emerging technologies such as artificial intelligence (AI), automation, internet of things (IoT) are helping traditional business process outsourcing models to reinvent through a more intelligent workflow. The process where standard business functions are contracted to a party that is outside of the company is called business process outsourcing. Typical functions that are outsourced by a business firm are customer service, accounting, payroll, and human resource management. Businesses can achieve more flexibility and cost efficiency by outsourcing business processes. Businesses use business process outsourcing practices in two main areas viz. back office and front office. Operations such as accounting, payment processing, IT services, human resources, regulatory compliance and quality assurance are some back-office operations outsourced by the business. And sales and marketing, tech support are some operations at the front office outsourced by the businesses.
Time and resources can be reallocated to core competencies such as customer relationship and product leadership by outsourcing the non-core and administrative functions. Businesses are exposed to innovative technological resources with the help of business processes outsourcing services. Additionally, a business can improve their processes by using recent technologies and practices with the help of outsourcing business partners. Furthermore, functions such as quick and accurate reporting, improved productivity and the ability to reassign its resources swiftly are some benefits that business process outsourcing partners offer business. Therefore, many businesses across the globe are using the benefits of business process outsourcing to focus on the main function of the business rather than non-core functions.
COVID-19 Scenario Analysis:
- The emergence COVID-19 has not only affected the economy across the globe but also have forced the workforce to work from home because of lockdown and restrictions imposed.
- However, the business processing outsourcing ecosystem could not cope with remote working and work from home as well as other industries.
- Business processes outsourcing companies have the burden of strict client confidentiality norms, as the business information and data they handle for the business are confidential.
- Absence of security to support data privacy of mission-critical business and the need for infrastructure to ensure speed, quality and overall efficiency of the service provider are some of the challenges faced by the business process outsourcing during the pandemic period.
- Furthermore, as a business is facing issues such as increased cost and increased legal complications, many businesses are planning to reduce the worker density in the enterprise which will fall on outsourcing.
- Additionally, technologies such as virtual assistants, AI-based chat boxes are replacing human agents as these are cost-effective machines and can operate during the pandemic.
- These are the reasons which have affected the business processes outsourcing market negatively during and post-pandemic period.
Top Impacting Factors: Market Scenario Analysis, Trends, Drivers and Impact Analysis
Many end-user industries such as banking, financial services, healthcare, manufacturing recruit business process outsourcing services in some capacity which is thereby responsible for the increase in growth of the business processes outsourcing market share. Advantages such as reduction in operation cost and improved efficiency are some of the reasons for the increase in the adoption of business processes outsourcing services. Additionally, this service not only offers enhanced connectivity to the business but also reliable, relevant and round-the-clock support for important business processes. Furthermore, more as a business are shifting from business strategies that are monopolistic to business culture that shares the workload is driving the demand for business processes outsourcing. Advanced technologies such as robotics, process automation, machine learning, big data analysis are expected to drive future business processes outsourcing market growth. Moreover, the increase in the adoption of SaaS solutions combined with enhanced cloud-based infrastructure and automated business processes is also responsible to drive the market growth. However, the major challenge faced by the business process outsourcing services is during offshore outsourcing. Political uncertainty wars, falling economies, citizens' protests can cause the government to restrict outsourcing in that particular country. Additionally, client companies at times can lose control of the project because of communication, time difference. This can therefore affect the quality of services provided by the business processes outsourcing. These are some reasons that can restrict the growth of business processes outsourcing market. With the help of advanced cloud computing technology, the time required to process data is reduced. Therefore, major market players are integrating cloud computing with business process outsourcing to enhance their services. Additionally, the initiative taken by the governments to promote cloud computing technologies is accepted to drive the growth of the market in the future.
Key Benefits of the Report:
- This study presents the analytical depiction of the business processes outsourcing industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with a detailed analysis of the business processes outsourcing market share.
- The current market is quantitatively analyzed to highlight the business processes outsourcing market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed business processes outsourcing market analysis based on competitive intensity and how the competition will take shape in the coming years
Questions Answered in the Business Processes Outsourcing Market Research Report:
- Which are the leading market players active in the business processes outsourcing market?
- What are the detailed impacts of COVID-19 on the market?
- What are the current trends that will influence the business processes outsourcing arket in the next few years?
- What are the driving factors, restraints, and opportunities in the business processes outsourcing market?
- What are the projections for the future that would help in taking further strategic steps?
Business Processes Outsourcing Market Report Highlights
By Service Type
By Enterprise Size
By Industry Verticals
Key Market Players
Amdocs, TTEC Holdings, Inc., Wipro Limited, CBRE Group, Inc., Sodexo, HCL Technologies Limited, NCR Corporation, Capgemini, Accenture, Infosys Limited (Infosys BPM)