Business Process Outsourcing - United Kingdom

United Kingdom

Revenue in the Business Process Outsourcing market is projected to reach US$25.23bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 3.24%, resulting in a market volume of US$28.66bn by 2028.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$0.71k in 2024.
In global comparison, most revenue will be generated in the United States (US$134.30bn in 2024).

Key regions: United Kingdom, United States, Brazil, Japan, Netherlands

Market

Region

Region comparison

Currency

Analyst Opinion

The outsourcing industry in the United Kingdom has been growing rapidly in recent years, and the Business Process Outsourcing (BPO) market is no exception.

Customer preferences: One of the main reasons for the growth of the BPO market in the UK is the increasing demand for cost-effective and efficient services. Many businesses are turning to outsourcing as a way to reduce costs and improve their operational efficiency. BPO providers offer a range of services, including customer support, finance and accounting, and human resources, which can be tailored to meet the specific needs of each client.

Trends in the market: One of the key trends in the UK BPO market is the increasing focus on digital transformation. BPO providers are investing heavily in new technologies such as automation, artificial intelligence, and analytics to improve the quality and speed of their services. This trend is being driven by the growing demand for digital services from businesses and consumers alike.Another trend in the UK BPO market is the increasing use of cloud-based solutions. Cloud-based BPO services offer a number of benefits, including greater flexibility, scalability, and cost-effectiveness. Many businesses are now looking to move their BPO services to the cloud to take advantage of these benefits.

Local special circumstances: The UK BPO market is unique in that it is heavily influenced by the country's strong financial services sector. Many BPO providers in the UK specialize in providing services to the financial services industry, including banking, insurance, and investment management. This has led to the development of a highly skilled and specialized workforce in the UK BPO industry.

Underlying macroeconomic factors: The growth of the UK BPO market is being driven by a number of underlying macroeconomic factors. These include the country's strong economic growth, its highly skilled workforce, and its favorable business environment. The UK government has also been supportive of the outsourcing industry, providing tax incentives and other benefits to BPO providers to encourage their growth and development.Overall, the BPO market in the UK is set to continue its strong growth in the coming years, driven by increasing demand for cost-effective and efficient services, as well as the growing focus on digital transformation and cloud-based solutions. With its highly skilled workforce and favorable business environment, the UK is well positioned to remain a leading player in the global BPO market.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.