The global BPO business analytics market was valued at is expected to grow CAGR of 18.2% During forecat period 2021 to 2027 .
Global BPO Business Analytics Market, 2018–2027 (USD Million)
Source: MRFR Analysis
Business analytics, a data management solution and business intelligence subset, refers to the use of methodologies such as predictive analytics, data mining, and statistical analysis to analyze and transform data into useful information, identify and predict trends and outcomes, and ultimately make intelligent, data-driven business decisions.
The data volume across the BPO companies is growing exponentially with the advent of social media, the Internet, and smartphone users. Thereby, the role of business analytics is becoming more vital to analyze historical data to gain new insights and improve strategic decision-making. Business Analytics helps BPO organizations maximize the value of their data, unearth insights, build plans and respond in real-time to customer demand.
Among BPOs, business analytics are the primary technologies being used to automate business processes. More BPO companies rely upon business analytics technology to make business more productive and offer a better customer experience. BPO businesses can highly profit from business analytics because of the volume of data they gather. By analyzing current data, BPO businesses can generate strategic insights for their clients and build better customer relationships. The rise of disruptive technologies has completely reshaped BPO-customer relationships now. The application of business analytics technology is more prevalent in call centers. Call center speech analytics, call center desktop analytics, self-service analytics, predictive analytics, and text analytics are the five types of analytics in which predictive analytics has significant demand. The advantages of business analytics are it improves agent performance, improves customer experience, helps in cost reduction, creates new products and services, and speeds up decision-making.
The application of business analytics in the BPO industry is making a significant impact. With the applications of analytics, the companies are significantly leveraging their revenue by using sophisticated tools and techniques for statistical surveying, root-cause analysis, and optimization. Modern, high-quality business analytics software solutions are developed to ingest and process the vast datasets that businesses encounter and useto ensure optimal business operations.
Globally, the BPO industry is the fastest-growing segment of the information technology-enabled services sector. Factors such as the ability to achieve economies of scale, cost advantage, business risk mitigation, utilization improvement, and superior competency have all led to the growth of the BPO industry. Businesses across all industry verticals have adopted BPO solutions as they offer an array of opportunities for cost reduction and business growth. BPO solutions provide several advantages such as cost efficiency, higher flexibility, better quality and performance, more competitive advantages, and increased diversity of skills, among others. Moreover, some Western countries are outsourcing their business processes to developing countries to save on taxes.
The volume of data is growing at an exponential rate, and interpreting and using this data meaningfully is becoming an importantfactor among the BPO companies. Contact centers around the globe have been unceasingly trying to catch up with an ever-changing landscape of customer expectations. The Internet has not only made the customers more demanding, but it has truly empowered them. No other industry has had to evolve so much in so little time as the BPO industry. The growing number of customer communication channels, increasing popularity of mobile apps and social media, and the challenges posed by millennial customers are factors that are leading to a transformation in the BPO industry. The contact center is situated at the crossroads of customers, employees, and channels, and it has single-handedly led the evolution of customer service for a long time now.
Prioritization and budget concerns are the key barriers to global market growth. This can be attributed to the high implementation cost of the business analytics software tools. Across the small BPO companies, analytics tools have become even more complicated to allocate and prioritize the budgets and implement. Many companies are still trying to get budgets for other necessary investments in areas such as workforce management or quality monitoring. Therefore, the low adoption of business analytics across the small and some medium-sized BPO enterprises due to budget issues is a major restraining factor for the BPO business analytics market.
The BPO sector is becoming a major GDP contributor to the emerging economies owing to the increased shift of western countries to those countries. The major factors contributing to this shift are the availability of a cost-effective labor force, supportive government policies, and a favorable business environment. The emerging economies such as India, Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea, Turkey, Egypt, Iran, Nigeria, Pakistan, Russia, Saudi Arabia, Taiwan, and Thailand are some of the major outsourcing destinations for the businesses. These economies' BPO sector is shifting towards rapid automation,which is creating several lucrative opportunities for the players operating in the BPO business analytics market.
The rise in the number of SMEs across the globe has enabled the strengthening of the global economy. For this, the governments have been trying to aid entrepreneurs by easing the regulatory and taxation policies. Additionally, they are also provided with essential low-interest loans for longer durations, among other benefits. For instance, the initiatives undertaken by the US government in promoting small businesses have resulted in the country registering more than 31.7 million in investments by the end of 2020, as per the statistics published by US Small Business Administration.
Growing cloud-based deployments are expected to open lucrative opportunities for the market during the forecast period. This is because cloud-based deployments can be deployed with minimal cost compared to traditional on-premise options, leading to increasing the adoption of business analytics solutions among small and medium-sized enterprises. Utilizing the benefits of cloud computing could be a way for more organizations to broaden adoption rates and reap the benefits that analytics can provide. For small organizations, it is often viewed as a way to minimize costs and improve efficiency while maintaining the necessary controls. The developing countries are expected to be the key adopters of the cloud-based business analytics software tools, and in turn, presentlucrative revenue generation opportunities for the market players.
Impact of COVID-19
The COVID-19 firstly originated in early 2020 in Wuhan, China, and rapidly spread across the globe. The worldwide cases have surpassed 200 million as of now and continue to rise. The pandemic forced lockdown situations across all the major economies. Itresulted in the imposition of numerous restrictions such as travel barriers, closure of the shops and markets, work from home, import-export ban, and others. Governments all over the world made various guidelines to stop the further spread of the COVID-19. Despite this, the coronavirus cases increased significantly and continue to rise. The COVID-19 pandemic hit all the major industries such as hospitality, leisure, manufacturing, trade, oil and gas, tourism, automotive, and transportation. However, this is conversely applicable to the BPO Business Analytics industry. This is because the BPO sector has witnessed several changes in business strategies, mainly the adoption of automation during the pandemic.
The BPO sector faced a crunch over the financial condition and delayed project deliveries due to the lockdowns and stay-at-home policies levied by the governing authorities. Organizations in the BPO industry faced data security challenges due to the remote working environment and inability to scale their IT infrastructure to the required amounts. Additionally, the exposure of employee’s personal data directly to the clients during online interaction affected their productivity while working remotely. The demand for cloud-based solutions has undergone tremendous change while increasing their accuracy, scalability, and cost-efficiency, among other benefits.
Impact on the End-Use Industry Verticals
The pandemic situation across the globe affected the supply chain operations, production, pricing, delayed deliveries, and others. However, the spending capacities changed owing to the lower disposable incomes than that of the pre-COVID-19 situation, which, in turn, affected the demand for various BPO services across industry verticals, such as BFSI, IT & telecommunication, retail, consumer goods, e-commerce, manufacturing, healthcare & life sciences, media & entertainment, and travel & logistics. For instance, the telecom industry reported demand for a varied range of services that are integrated with the latest technologies (including chatbots) with minimum price and looking for a partner with expertise in solving all customer issues instantly.
Impact on IT Expenditure
The rapid shift to the new working environment during the pandemic has increased the IT budgets for BPO organizations to continue their business operations, stay connected, and cater to their clients during the work-from-home scenario. However, this also created challenges for some BPO organizations as they were required to reskill or upskill employees to cope with the situation.
Impact on Digitalization/Automation
COVID-19 has prompted the business process outsourcing industry to abandon numerous existing strategies and implement approaches that enable their customer care providers to operate remotely without jeopardizing consumer quality of service or health. The pandemic has acted as a catalyst in the revamping of the business process outsourcing industry. With an urgent need to move operations remotely, several traditional BPOs shifted towards digital transformation.
Impact on Market Players
The technology software providers have experienced significant demand for automation in the business process outsourcing during the lockdowns. Robotic process automation, BPA, RPA technology, and business analytics were in high demand during the lockdowns to enhance customer experience. Additionally, big data, business analytics, and speech-to-text experienced a surge in demand during the lockdowns. The market players have experienced an increase in the YoY revenue growth due to increased automation across the BPO sectors. The market players kept offering software solutions and services during the lockdowns despite the various challenges such as remote work and offices closed.
COVID-19 has accelerated the automation among the BPO sector, which has resulted in the adoption of advanced technologies, including business analytics. The automation era is already instigated, which will achieve record growth during the post-pandemic world.
Cumulative Growth Analysis
As per MRFR, the BPO business analyticsmarket is expected to witness 15% to 21% percent YOY growth every year during the projected period. The high growth of the BPO industry across the globe and the rapid automation among the BPO sectors to handle the large volume of data. Moreover, the rise in IT spending and initiatives being taken by governments across the globe are some of the factors supporting the market growth.
The global BPO business analyticsmarket supply chain has evolved from a traditional approach to a set of highly efficient processes, including procurement, system integration, and distribution. The supply chain of the BPO business analyticsmarket involves the designers & programmers, software/platform developers, system integrators, and end-users.
The global BPO business analytics market has been segmented into component, deployment, organization size, application, vertical, and region/country.
Based on component, the BPO business analytics market has been segmented into software and services. The services segment is anticipated to exhibit the faster CAGR growth rate during the projected period.
Based on deployment, the BPO business analytics market has been classified into cloud-based and on-premises. The on-premises deployment segment is expected to account for the larger market share; however, the cloud-based deploymentsegmentis expected to exhibit the faster CAGR rate during the projected period.
Based on organization size, the BPO business analytics markethas been bifurcated into SMEs and large enterprises. Large enterprises hold the larger market share within the global market and are expected to grow with the fastest CAGR during the forecast period.
Based on application, the BPO business analytics market has been segmented into finance & accounting, human resources, knowledge process outsourcing, procurement & supply chain, customer services, and others. The customer services segment is expected to witness significant CAGR growth during the projected period.
Based on vertical, the BPO business analytics market has been segmented into BFSI, IT and telecommunication, healthcare, manufacturing, retail, transportation and logistics, and others. BFSI, IT and telecommunication, healthcare, and manufacturing are the largest contributors to the global market. The healthcare sector segment is expected to register the fastest growth during the projected period.
The global BPO business analytics market is expected to gain significant revenue from the various continents during the projected period. The geographic analysis of the BPO business analytics market has been conducted for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. North America is classified into the US, Canada, and Mexico. Europe is divided into the UK, Germany, France, and the Rest of Europe. Asia-Pacific is segmented into China, Japan, India, and the Rest of Asia-Pacific.
North America holds the leading share inthe BPO business analytics market, primarily due to the rapid digitalization across the BPO organizations. In North America, the high penetration of this digitization technology can be attributed to universal standards accepted worldwide. The US dominated the regional market as it is the most developed country in terms of economy and high demand for various industries such as BFSI, IT & telecommunication, retail, and healthcare. Moreover, the presence of prominent vendors such as Cognizant Technology Solutions (US), Exlservice Holdings Inc. (US), Genpact Limited (US), International Business Machines Corporation (US), Dell Technologies Inc. (US), and Hewlett Packard Enterprise Development LP (US) is also the primary growth factor of the region. Canada is the second-largest developed country in the region and is expected to exhibit the fastest growth during the projected period.
Europe holds the second position in the BPO business analytics market in terms of revenue. The UK, Germany, and France are the major growth engines of the market. The UK holds the leading share within the European BPO business analytics market. Germany and France are also contributing significant revenue for the European market. Benelux and Nordic countries have shown increased adoption ofBPO business analytics.Furthermore, organizations are increasingly focusing on reducing the cost ofconducting business for accessing global resources to meet the growing industry demands.
Asia-Pacific is the third-largest market for the global BPO business analytics market. However, the market is expected to grow with the fastest CAGR compared to other regions. This can be attributed to the growing businesses across the region owing to the leading company’s expansion strategies. Several western BPO companies have expanded their geographic footprint across the region due to a cheap labor force coupled with favorable business policies. China, Japan, India, and Southeast Asian countries are the major contributors to the highest growth. India is likely to exhibit the fastest growth in the APAC region as the country is becoming a major BPO hub for global companies. Multinational and domestic BPO companies are heavily investing in automation/digitalization in business processes.
The BPO business analytics market is highly competitive with the presence of several leading vendors. However, some of these players have created goodwill within the global market by offering advanced features at affordable prices. Accenture PLC (Ireland), Capgemini SE (France), Cognizant Technology Solutions (US), Genpact Limited (US), International Business Machines Corporation (US), Exlservice Holdings Inc. (US), and Tata Consultancy Services Limited (India)are the prominent players within the market withlarge client bases across the globe. Some of these major players have adopted organic and inorganic strategies such as mergers, acquisitions, partnerships, strategic alliances, and product launches to gain a competitive advantage. Moreover, some leading players are constantly focusing on technological advancements to offer advanced and upgraded features per the dynamic consumer needs. The vendors compete in terms of software types, deployment, after-sales services, among other factors. Technological advancements are mandatory for new entrants to compete against the leading giants within the market.
List of Key Companies Covered in this Report:-
Key Developments in Global BPO Business Analytics Market:
This study estimates revenue growth at the global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2027. For this analysis, MRFR segmented the BPO business analytics market has based on component, deployment, organization size, application, vertical, and region/country.
Based on Component
Based on Deployment
Based on Organization Size
Based on Application
Based on Vertical
Based on Region
|Historical Data||2018 & 2019|
|Forecast Units||Value (USD Million)|
|Segments Covered||• By Component (Software andServices) • By Deployment (Cloud-Based andOn-Premises) • By Organization Size (SMEs andLarge Enterprises • By Application (Finance & Accounting, Human Resources, Knowledge Process Outsourcing, Procurement & Supply Chain, Customer Services, and Others) • ByVertical (BFSI, IT & Telecommunication, Healthcare, Manufacturing, Retail, Transportation & Logistics, and Others)|
|Geographies Covered||• North America (US, Canada, and Mexico) • Europe (UK, Germany, France, and Rest of Europe) • Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific) • Middle East & Africa • South America|
|Key Vendors||• HiHello, Inc. (US) • Haystack (Australia) • Inigo (US) • L-Card (US) • Switchit (US) • Adobe (US) • Techno Infonet (India) • About.me (US) • SnapDat (US) • CamCard (US) • Mobilo (US) • DziCard.com (Quancore Group) (India) • Knowee (Spain) • Lulu Systems, Inc. (US) • Vistinkard (India)|
|Key Market Opportunities|
|Key Market Drivers||• Drivers • High Growth of the BPO Industry Across the Globe • The Rapid Automation among the BPO Sectors to Handle the Large Volume of Data • Opportunities • Increasing Demand from SMEs • Emerging Economies are Expected to Open Lucrative Opportunities for the Market • Growing Cloud-Based Deployments • Challenges • Prioritization & Budget Concerns • Impact of COVID-19 • Impact on the BPO Sector • Impact on the End-Use Industry Verticals • Impact on IT Expenditure • Impact on Digitalization/Automation • Impact on Market Players|
The global BPO business analytics market was valued at USD XX million in 2020
The global BPO business analytics market is expected to exhibit an18.2% CAGR rate by 2027.
The North American region currently dominates the market and is expected to retain its dominance throughout the forecast period.
Customer service is the most lucrative application in the global BPO business analytics market.
BFSI, IT and telecommunication, manufacturing, and retail are the largest contributors to the global BPO business analytics market.
Accenture PLC (Ireland), Capgemini SE (France), Cognizant Technology Solutions (US), Exlservice Holdings Inc. (US), and International Business Machines Corporation (US)are the key companies of the global BPO business analytics market.