Reliable source: Increased healthcare activity and growing wages will boost demand for industry services

The Business Process Outsourcing Services industry fared well over the five years to 2017, supported by an improving economy and rising revenue in the human resource, finance and accounting, customer relations management and insurance sectors, which provide a large portion of BPO business. Additionally, rising wages and increased operating costs associated with the passage of Patient Protection and Affordable Care Act (PPACA) helped drive employers to BPO companies as a method of cost control. In the next five years, minimum wages at the state level will continue to rise. Moreover, the healthcare sector will encounter an upsurge in costs due to the continued aging of the population...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The healthcare industry will encounter an upsurge in costs, boosting demand
  • Improvements in the overall US economy has helped lift industry revenue
  • Revenue will continue to be supported by increasing wage pressure and healthcare costs
  • Industry Report - Industry Locations Chapter

    The distribution of BPO establishments generally reflects the dispersal of the US population, with increased establishment concentration near key demand markets such as financial service and insurance companies, large corporations and healthcare providers. The majority of BPO companies are concentrated in the Southeast, with the West and the Mid-Atlantic containing a significant number of industry establishments.SoutheastThe Southeast has the largest number of industry operators, accounting for an estimated 25.5% of total industry establishments in 2017. In large part, this percentage reflects the distribution of people across the United States as the Southeast region accounts for more than one-quarter of the US population. In ...purchase to read more.

    Additional Insights for the Business Process Outsourcing Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Business Process Outsourcing Services Industry are

  • Access to quality personnel management
  • Ability to quickly adopt new technology
  • Accessibility to consumers/users
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Number of businesses in the Business Process Outsourcing Services industry impact industry performance..

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    What's in this report

    What is the Business Process Outsourcing Services Industry?

    Operators in this industry provide third-party outsourcing services on a contract basis. Clients can outsource specific operations and business functions, including both back and front office tasks, to companies in this industry.

    Industry Products
  • Industry Specific
  • Human Resource
  • Customer Relationship Management
  • Finance and Accounting
  • Industry Activities
  • Providing outsourcing services for work related to finance and accounting functions
  • Providing outsourcing services for work related to human resource functions
  • Providing outsourcing services for customer relations management
  • Providing outsourcing services for sales fulfillment and order management
  • Providing outsourcing services for document management
  • Providing outsourcing services for supply chain management and engineering functions
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate profit
  • Number of businesses
  • Number of people with private health insurance
  • Demand from finance and insurance
  • Demand from professional, scientific and technical services

  • Current Performance
  • Increasing demand
  • Improving conditions
  • Pending legislation
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry growth
  • Restricted profit
  • Table: Business Process Outsourcing Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Business Process Outsourcing Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Retail Trade
  • Information
  • Finance and Insurance
  • Healthcare and Social Assistance

  • Key Selling Industries
  • Commercial Leasing
  • Computer Stores
  • Office Supply Stores
  • Wired Telecommunications Carriers

  • Products & Services
  • Industry Specific
  • Customer Relationship Management
  • Human Resource
  • Finance and Accounting
  • Chart: Business Process Outsourcing Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Banking
  • Insurance
  • Manufacturing
  • Consumer Packaged Goods
  • Pharmaceutical and Healthcare
  • Software and Tech Companies
  • Energy and Utilities
  • Chart: Major Market Segmentation for the Business Process Outsourcing Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases and depreciation
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Business Process Outsourcing Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Business Process Outsourcing Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Business Process Outsourcing Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Business Process Outsourcing Services Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Corporate Profit (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Back Office
  • The various support and administrative functions, such as clearance, settlements, record maintenance and compliance undertaken by personnel in the finance and accounting industries.
  • Front Office
  • The various support processes undertaken by a business that reaches out directly to customers. These include marketing, sales and customer inquiries.
  • Information And Technology (It)
  • The use of computers and telecommunications systems to store, access, transmit and manipulate data for business processes.
  • International Classification Of Diseases (Icd)
  • The official US system used to classify and assign codes to health conditions.
  • Supply-Chain
  • The sequence of processes involved in the production, handling and distribution of a good or product.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Business Process Outsourcing Services is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Business Process Outsourcing Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Business Process Outsourcing Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Business Process Outsourcing Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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