COVID-19 has severely impacted all the industries and the business process outsourcing sector is not an exception. All business entities are now taking suitable action to continue business after the crisis.
Based on the latest report from Technavio, even during this crisis, the business process outsourcing market is expected to accelerate at a CAGR of almost 10% through 2020-2024. The company has analyzed that the market size has the potential to grow by USD 76.90 billion and the market’s growth momentum will accelerate during the forecast period. BPO services help organizations increase their market share, expand customer base, and thus enhance customer relationships.
Based on the report, it is expected that the impact will be significant in the first quarter but will gradually lessen in subsequent quarters – with a limited impact on the full-year economic growth.
Several key factors are contributing to the growth of the global market, which include:
- Increased outsourcing of business operations which has a positive impact on the market
- Rising emphasis on process automation
- Adoption of emerging technologies
The report has segmented the business process outsourcing market on the basis of End-user (IT and telecommunication, BFSI, Retail, Healthcare, and Others) and Geographic Landscape (North America, Europe, APAC, MEA, and South America).
Based on segmentation by end-user, the global market includes IT and Telecommunication, BFSI, Retail and Healthcare. In this segment, IT and telecommunication is expected to grow at a faster rate.
Geographically, the market is divided into APAC, Europe, MEA, North America and South America. Owing to the increasing adoption of advanced technologies such as cloud computing solutions, social media, AI, and RPA among businesses in the region, the North American region is expected to hold the highest market share.
According to the report, BPO services can yield between 30%-50% cost savings for a company.
Top players in the market mentioned in the report are Accenture Plc, Capgemini SE, Deloitte Touche Tohmatsu Ltd., Genpact Ltd., HCL Technologies Ltd., Infosys Ltd., International Business Machines Corp., KPMG International Cooperative, Tata Consultancy Services Ltd., and Wipro Ltd. It is recommended that to make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
How Should IT and Business Process Outsourcing Sector Respond to COVID-19?
CBI Ministry of Foreign Affairs has recommended certain tips for the IT and business process outsourcing sector on how to respond to COVID-19.
Certain immediate actions for doing business after the crisis are:
- Make a detailed crisis plan for this situation
- Prepare many scenarios for the short-term, mid-term, and long-term
- Minimize costs by reducing staff numbers
- Limit the number of working hours and benefits
- Communicate your situation clearly to your staff
- Secure the company’s cash flow from banks, customers and other sources
As the current crisis cannot be compared to any other, it is crucial for businesses to take key steps to improve their business and prepare for the future.
