Cloud-based BPO market Size, Share, Growth, and Industry Analysis, By Type (Human Resource, E-Commerce Finance and Accounting, Customer Care, Sales & Marketing, Others), By Application (BFSI, Telecom & IT, Healthcare, Automotive, Manufacturing, Food And Beverage, Power & Energy, Consumer Electronics, Others) and Regional Insights and Forecast to 2031

Updated On: 15 April 2024

CLOUD-BASED BPO MARKET REPORT OVERVIEW

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The global Cloud-based BPO market size was USD 61080 million in 2021, and is projected to reach USD 180560 million by 2028 at a CAGR of 16.5% during the forecast period.

BPO refers to the process of outsourcing operations and other responsibilities of many business functions to external service providers. These services find prominent demand due to their benefits such as increased flexibility, reduced costs, and enhanced service quality. Moreover, the market allows businesses to focus on their core business activities to deliver incremental value to their customers. The global cloud-based BPO market is gaining momentum across the industries due to its highly reliable data storage & information features , these cloud-based BPO are not only acting as a service providers but also a reliable source for  data storage as well because not every business can build the high capacity IT infrastructure in-house & that’s where these cloud-based BPO are playing key roles in both managing & providing customized business solutions, the universal  accessibility and usability of a cloud-based BPO has given it an edge over the traditional method of business processes.

The increasing demand of the cloud-based BPO market is pertaining to the benefits such as, ease in operational structure of the organization, reducing operating costs, reduced the turnaround time in HR & other human capital activities & streamlined business process automation have inspired the large enterprise companies to adopt cloud-based BPO services. Moreover the increasing demand for the cloud based business process is one of the prominent factors for the rapid adoption of the BPO, the other aspect is the introduction of Artificial Intelligence in the cloud-based BPO for driving the overall business efficacy. As per the latest data the cloud-based BPO accounts for 78% of the total BPO industry & the cloud-based services are 36% more profitable than the traditional BPO process.

COVID-19 Impact: Market Growth Is Propelled By Pandemic Due To Increasing Demands Outsourced Business Processes Services

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The pandemic resulted in a complete turnaround in the work culture of almost all the organizations such as work from home was highly adapted by both the employers & employees which resulted in boost for such cloud-based BPO market size, the key driving factors are the reduced workforce for non-core business activities, reduced dependency on the staffs along with the demand for standardized platform services that offer BPOs to resolve complex business processes, thereby generating avenues for business process outsourcing market growth. Both the immediate & the long term impact of COVID-19 is predominantly showing a promising market demand & an uptrend in cloud-based BPO globally.

LATEST TRENDS

"Tech enabled cloud-based BPO to Drive Market Growth"

The need to control the operating costs, harmonize processes, focus on core competencies, and employ qualified talent is anticipated to drive the market over the coming years, the cloud-based BPO have now incorporated the smart AI with their computing software, which enables the organizations to analyze the data, predict trends, automate repetitive tasks & ultimately all such features helps the companies taking informed decisions & better process-optimization. The cloud-based BPO models are also onboarding more functionalities like industry specific tailored cloud-based BPO services providing solutions to both the enterprise & the retails user base as well, for sectors like healthcare, finance, small business owners, startups that cannot invest heavily on human capital. The cloud-based BPO has improved on their operational strategies as well owing to change in demand structure post COVID-19, they have enabled 24/7 system access with on demand flexible provisioning, real time computing access, moreover, BPO companies leverage cloud computing to complete data-intensive business procedures in minimum time and aid their clients in optimizing the data processing workflow with reduced turnaround time.

CLOUD-BASED BPO MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into Human Resource, E-Commerce Finance and Accounting, Customer Care, Sales and Marketing, and Others.

• Human Resource: In the realm of cloud based BPO service, the Human Resource can leverage various benefits of the cloud platforms like, recruitments, onboarding, payroll & workforce management activities.

• E-Commerce: The E-Commerce has a vast number of use cases of cloud based BPO service, it is used for streamlined & on time execution to support the online business to ease down the operational complexities, order processing & inventory management.

• Finance & Accounting: Cloud-based Finance and Accounting BPO services involve outsourcing financial tasks to cloud platforms, providing scalable and efficient solutions for tasks such as bookkeeping, invoicing, and financial reporting.

• Customer Care: A great customer care is the backbone of every online business, the cloud based BPO helps in numerous ways like 24/7 availability, multichannel support, insights of customer interactions etc.

• Sales & Marketing: The cloud-based BPO platform can be used to assist in various online marketing campaigns, lead generation & management, data analytics & performance analysis.

By Application

Based on application the global market can be categorized into BFSI Telecom & IT, Healthcare, Automotive, Manufacturing, Food And Beverage, Power & Energy, Consumer Electronics, Others.

• Telecom & IT: In the Telecom & IT sector, cloud-based BPO services encompass a range of outsourcing solutions like customer support, network management, and data centers.

• Healthcare: Health care sector is increasingly adopting the cloud based BPO service for administrative processes, medical billing, storing patient credentials, and tele-medical support.

• Automotive: The automotive industry is incorporating cloud based BPO services to cut down their non-core operations cost, better data management, streamlined supply chain management & focus on core competencies.

• Food And Beverage: Cloud-based BPO services in the food and beverage industry involve outsourcing tasks related to order processing, inventory management, and customer service, to ensure quality control & maintain the standard across various processes.

• Power & Energy: Cloud-based BPO services in the power and energy sector focus on outsourcing tasks related to automated billing, reducing the number of billing defaults, customer support & data  analytics.

• Consumer Electronics: In the consumer electronics sector, cloud-based BPO services include 24/7 customer support, order processing, and warranty management. Outsourcing these functions allows consumer electronics companies to enhance customer satisfaction.

DRIVING FACTORS

"Increasing reach & competitions with less workforce to drive the market growth"

The significant downsizing in labor & workforce across the industries post COVID-19 have given the cloud-based BPO a sweeping benefit to explore & expand cloud-based BPO market growth, the companies are driven to move its focal point to the core business & slash its manpower cost to a significant value without compromising its growth prospects & such-cloud based BPO provides avenues to explore & curate a suitable & sustainable business plan through cloud-based BPO services, such a conducive ecosystem has built a symbiotic relation among the companies & cloud-based BPO service provider to nurture each other & a substantial uptake in market growth.

"Enhanced Collaboration and Communication Tools on a single platform to expand the market"

Cloud-based BPO enables seamless communication and collaboration among team members, clients, and stakeholders. This contributes to improved workflow efficiency and productivity. The various other tapping points involves real-time competitive analysis, built-in redundancy & recovery solutions, along with reduced latency rate, all this helps the organization to reduce its downtime & get a quick fix solution from the service providers remotely.

RESTRAINING FACTORS

"Dependency On The Vendor For Update, Integration & Compliances To Challenge The Market Growth"

While the cloud-based BPO has disrupted the traditional methodologies of business practices & operations, there are still scope for due diligence for full proof infrastructure that is both compliant & cost effective for the companies in the longer run, Industries with strict regulatory requirements (such as healthcare or finance) may face challenges in complying with data protection laws and industry-specific regulations when utilizing cloud-based BPO service. The company might seek few integration with current cloud-based BPO service provider which may not be possible due to additional cost or limited IT infra availability with the service provider, such issue hampers the customer experience & the business as whole in the longer run.

CLOUD-BASED BPO MARKET REGIONAL INSIGHTS

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"North America has dominated the market due to rising demand for outsourcing business processing services"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America is the global leader in the cloud-based BPO market share & is expected to retain its dominance due to the rising demand for business process outsourcing services from several tech giants in the region. Customization of service offerings to better meet individual needs, coupled with the increasing demand for cloud computing also North America enjoys a favorable policy framework the facilitates the growth & innovation in the cloud based BPO services sectors that is eventually expected to support the North America business process outsourcing market especially in banking & accounting followed by the human resource sectors accounting the major share for the market growth in this region.

List of Market Players Profiled

• Firstsource Solutions (India)
• WNS (India)
• Infosys (India)
• HCL Technologies (India)
• Genpact (U.S.)
• Capgemini (France)
• Atos (France)
• Tata Consultancy Services (India)
• DXC Technology  (U.S.)
• Sungard (U.S)
• Accenture (Bermuda)
• ADP (U.S)
• IBM (U.S.)
• Oracle (U.S.)
• SAP (Germany)
• Xerox (U.S.)
• HPE (U.S.)

INDUSTRIAL DEVELOPMENT

November 2023: TTEC Holdings, Inc., a provider of customer experience BPO services, announced the opening of a customer experience delivery center in Cape Town, South Africa. TTEC Holdings, Inc.  Provides customer experience services to numerous companies across several industries, such as manufacturing, automobile, healthcare, and telecommunications. The delivery center in Cape Town has space for several hundred employees.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.