Business Process Outsourcing (BPO) is a rapidly growing business sector. Today, as businesses look for ways to lower operational costs, access cutting edge technology, and address pressing labor challenges, BPO services continue to carve out a larger share of the global economy. 

But which business trends are driving this growth? How are companies using BPO to further their internal growth in these challenging economic times? And what does the future hold for the Business Process Outsourcing industry?

Below, we highlight a few recent statistics to help answer these questions. 

10 Key BPO Industry Stats in 2024

1. The Business Process Outsourcing (BPO) industry is growing at a robust rate. In 2024, the global BPO sector topped $390 billion in revenue. And with an annual growth rate of 4.67%, economists forecast the industry will reach $490 billion in worldwide market volume by 2029, according to Statista.

2. The United States is, by far, the largest BPO market in the world, reports Statista. The U.S. BPO market topped $146 billion in 2024. And with an annual growth rate of 4.08%, the market volume for America’s BPO sector is projected to reach $178.70 billion by 2029.

3. Which business services are driving this growth? According to recent findings from Grandview Research, the most dominant segment of the global BPO business is IT & Telecommunications. Outsourced technical services—driven by a greater demand for connectivity, cybersecurity, and computing innovations—accounted for 25% of the global BPO revenue share in 2023.

4. Grandview Research reports that outsourced customer service operations also controlled a large segment of the global BPO market. Outsourced customer services—including management of social media platforms, live online chats, phone calls, emails, and other channels—accounted for 22.7% of the BPO industry’s global revenue in 2023. 

5. What are the leading factors driving the rapid growth of the BPO industry? Labor concerns are among the top drivers. According to Deloitte’s Global Outsourcing Survey, 62% of executives say they lack the time or resources to resolve poor employee retention rates. This labor trend is causing many businesses to seek BPO partners with access to global talent pools.

6. Rapidly evolving technology is another major catalyst for growth in the global BPO market. Deloitte’s Global Outsourcing Survey reports that 96% of executives say they rely on outsourcing for their data and analytics capabilities. 

7. Small business owners are playing a major role in the expansion of the global BPO market. Companies of 50 employers or fewer are turning to third-party providers for a host of critical business functions. A 2023 Clutch survey of over 500 small business owners reports that 27% are planning to invest in marketing services, 22% plan to enlist third-party IT services, and 21% of survey respondents expect to outsource design services.

8. For small businesses, BPO services can help to significantly offset the cost of internal labor. The costs of recruitment, hiring, onboarding, training, compensation, and benefits can top six figures even for the acquisition of a single employee. By contrast, according to the survey from Clutch, the average spend on outsourced service providers in 2022 was just $198,550.

9. In spite of BPO’s proven benefits, there are still some challenges to consider when seeking the right provider. According to the Clutch survey, 22% of executives say that their primary concern when selecting a third-party service provider is the potentially negative impact this might have on internal company culture. This highlights the importance of choosing a trustworthy, reliable, and experienced BPO partner.

10. One way that many businesses are guarding against the risk of a negative cultural impact is by choosing partners with access to hybrid service options. This refers to BPO providers with business operations and local leadership based in the U.S. as well as access to cost-effective global labor pools. For this reason, according to Grandview Research  the onshore segment of the BPO sector is the fastest-growing portion of the market, and already accounts for 45.2% of the marketplace. 

The hybrid model described above is increasingly popular for businesses of every size who are seeking an active, engaged, and accessible BPO partner as well as the cost benefits that can be achieved with a global reach. To learn more about this approach and how this strategy sets TechSpeed apart from other third-party data and IT specialists, set up a call today!