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Total contract value of the business process outsourcing market worldwide 2000-2018

Total contract value of the business process outsourcing (BPO) market worldwide from 2000 to 2018 (in billion U.S. dollars)*

by E. Mazareanu, last edited May 9, 2019
Total contract value of the business process outsourcing market worldwide 2000-2018 Contrary to many other sectors in the service industry, the total value of the global business process outsourcing (BPO) market has been consistently trending down from a peak contract value of 36.5 billion U.S. dollars in 2012 to only 23.6 billion U.S. dollars in 2018.
Business process outsourcing

Business process outsourcing is where a third party is contracted to assume operational responsibility for a specific business process. Included are many different business processes, with human resources, finance and accounting, and supply chain management being the most common. IT outsourcing is generally considered separate to BPO, however sometimes it is considered a BPO service.

Explanation for the declining in BPO

One important reason for the overall decline in the BPO market is the increasing capacity for business processes to be automated. In a 2017 study it was predicted that, due to automation, over the decade up to 2026, the BPO market will shrink by 25.5 billion U.S. dollars. Automation also helps explain why the downward trend applies to all regions, despite the potential cost savings available through offshoring business processes to cheaper labor markets.
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Total contract value of the business process outsourcing (BPO) market worldwide from 2000 to 2018 (in billion U.S. dollars)*

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by E. Mazareanu, last edited May 9, 2019
Contrary to many other sectors in the service industry, the total value of the global business process outsourcing (BPO) market has been consistently trending down from a peak contract value of 36.5 billion U.S. dollars in 2012 to only 23.6 billion U.S. dollars in 2018.
Business process outsourcing

Business process outsourcing is where a third party is contracted to assume operational responsibility for a specific business process. Included are many different business processes, with human resources, finance and accounting, and supply chain management being the most common. IT outsourcing is generally considered separate to BPO, however sometimes it is considered a BPO service.

Explanation for the declining in BPO

One important reason for the overall decline in the BPO market is the increasing capacity for business processes to be automated. In a 2017 study it was predicted that, due to automation, over the decade up to 2026, the BPO market will shrink by 25.5 billion U.S. dollars. Automation also helps explain why the downward trend applies to all regions, despite the potential cost savings available through offshoring business processes to cheaper labor markets.
Show more
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