Customer Care BPO Market Size and Share Report by 2031
The customer care BPO market size is projected to reach US$ 43.33 billion by 2031 from US$ 24.29 billion in 2023. The market is expected to register a CAGR of 7.5% during 2023–2031. The rising implementation of AI is likely to remain a key trend in the market.
Customer Care BPO Market Analysis
Customer care outsourcing involves using third-party services to handle customer interaction across the stages of pre-buying, buying, and post-buying. These services are provided through various channels, including the website, email or messaging, phone, live online chat, social media, and text or messages. The use of these multi-channel solutions helps outsourcing companies efficiently deliver services. The growth of the customer care BPO market is being facilitated by the increasing trend of work-from-home (WFH) in industries like IT & Telecom and BFSI. This trend is providing opportunities for market players to innovate and develop new delivery models.
Customer Care BPO Market Overview
Business Process Outsourcing (BPO) services primarily involve managing the outsourcing of business processes to meet a client's needs. These services are responsible for specific business operations. The most commonly outsourced company functions include back-office operations such as accounting and finance, HR, and customer support services. Customer service business processing outsourcers (BPOs) have the potential to significantly boost businesses by offering customer service support and specialized knowledge that aids companies in attracting and retaining customers.
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Customer Care BPO Market: Strategic Insights
Market Size Value in US$ 22,598.82 million in 2022 Market Size Value by US$ 34,570.73 million by 2028 Growth rate CAGR of 7.5% from 2023 to 2028 Forecast Period 2023-2028 Base Year 2022
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Customer Care BPO Market: Strategic Insights
| Market Size Value in | US$ 22,598.82 million in 2022 |
| Market Size Value by | US$ 34,570.73 million by 2028 |
| Growth rate | CAGR of 7.5% from 2023 to 2028 |
| Forecast Period | 2023-2028 |
| Base Year | 2022 |
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Customer Care BPO Market Drivers and Opportunities
Rise of Technologies such as Artificial Intelligence and Cloud Computing to Favor Market
The increased integration of Artificial Intelligence (AI) into customer care Business Process Outsourcing (BPO) services has been driven by technological evolution, digital transformation, and the COVID-19 pandemic. This integration has enabled service providers to enhance real-time communications with customers, revolutionizing the way brands connect with their audience. AI, along with cloud computing, has bridged the gap between the vast amount of data being generated and the ability to utilize this data for real-time customer engagement. This integration has empowered BPO firms to offer 24/7 support, resolve simple issues, and personalize their services. In sales businesses, AI has facilitated the personalization and scaling of the sales process.
AI-based speech recognition, virtual assistants, and interactive voice responses have significantly reduced customer waiting times before reaching a customer care executive. Additionally, the role of AI-powered omnichannel routing has allowed seamless switching between multiple channels, such as chats and voice calls, with executives always prepared to address customer queries or complaints. Smart BPOs integrated with AI have helped businesses optimize and automate their services, resulting in more cost-effective, environmentally friendly, and efficient business processes. Therefore, the emergence of technologies like artificial intelligence and cloud computing is estimated to drive the growth of the customer care BPO market in the coming years.
Rising Demand for Cost Savings in Businesses
Outsourcing customer service has the potential to yield significant cost reductions. This is because customer service Business Process Outsourcing (BPO) companies already possess established infrastructure and operational efficiencies, eliminating the need for additional office space, equipment, training costs, and other related expenses required to onboard support agents in a home office. However, partnering with a customer service BPO can help eliminate these costs, as they already have the necessary infrastructure and operational efficiencies in place. This allows them to offer high-quality support at a reduced cost compared to maintaining an in-house team, with the primary concern being BPO onboarding. Furthermore, organizations can often achieve greater cost savings by collaborating with an offshore BPO that utilizes international agents. This can be remarkably advantageous for organizations seeking multilingual customer support.
Customer Care BPO Market Report Segmentation Analysis
Key segments that contributed to the derivation of the Customer Care BPO Market analysis are deployment, organization size, and application.
- Based on solution, the market is segmented into onshore outsourcing, offshore outsourcing, and nearshore outsourcing. The onshore outsourcing segment held a significant market share in 2023.
- In terms of end user, the market is divided into BFSI, IT and telecommunication, retail and E-commerce, manufacturing, healthcare and pharmaceutical, transport and logistics, media and communication, automotive, and others. The IT and telecommunication segment held a substantial share of the market in 2023.
Customer Care BPO Market Share Analysis by Geography
The geographic scope of the customer care BPO market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
The customer care BPO market in North America is divided into Canada, the US, and Mexico. We hold the largest share of this market in North America. The presence of numerous large companies in the US, such as Microsoft Corporation, Apple Inc., Proctor & Gamble, and General Motors, has led to an increased demand for customer service representatives to meet various customer needs. According to the US Bureau of Labor Statistics, more than 2,890,000 people were employed as customer service representatives in the US in 2021. The US is known for its technological advancement, early adoption of advanced technologies, and the presence of various tech firms, including both small and medium enterprises (SMEs) and large enterprises. This has contributed to the country's exponential evolution.
Customer Care BPO Market Report Scope
Customer Care BPO Market News and Recent Developments
The customer care BPO market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the customer care BPO market are listed below:
- Solera, the global leader in vehicle lifestyle management, today introduced its BPO service offering, XpertCX Solutions Suite. Designed to redefine customer experience, this innovative suite provides a holistic approach to BPO services, offering end-to-end support across the automotive industry. By seamlessly blending cutting-edge technology with seasoned expertise, XpertCX Solutions Suite aims to streamline operations, amplify efficiency, and elevate customer satisfaction across the industry. Additionally, as Solera continues to prioritize the growth of XpertCX Solutions Suite and its BPO arm, the company will inaugurate a new office space on March 27th, dedicated to accommodating over 400 customer service employees in Jacksonville, Florida.
(Source: Solera, Press Release, March 2024)
Customer Care BPO Market Report Coverage and Deliverables
The “Customer Care BPO Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Customer care BPO market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Customer care BPO market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Customer care BPO market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the customer care BPO market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Solution, and End User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The market is expected to reach a value of US$ 43.33 billion by 2031.
The market is anticipated to record a CAGR of 7.5% during 2023–2031.
Alorica Inc., Telus International Cda Inc., Simply Contact International, Comdata SpA, Concentrix Corp, Foundever Operating Corp, Front Logix Solutions LLC, TTEC Holdings Inc., Teleperformance SE, and Webhelp Inc. are major players in the market.
The rising Work-From-Home (WFH) trend is a key trend in the market.
The rise of technologies such as artificial intelligence and cloud computing and increasing demand and growth in diversified BPO services are driving the market.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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