Overview

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

The Business Process Outsourcing Services industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$135bn
Annual Growth
12-17
3.3%
Annual Growth
17-22
Profit
Employment
979,236
Business
170,457

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

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    Industry Analysis & Industry Trends

    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...

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    Industry Report - Industry Analysis Chapter

    The Business Process Outsourcing Services industry prospered over the five years to 2017. The improving US economy, coupled with rising revenue in the finance and accounting sectors, the insurance and human resource industries and in credit card services, have helped support business process outsourcing (BPO) sales. Additionally, employers within these sectors and industries have experienced escalating expenses, due to wage increases and rising health insurance costs, and have contracted BPO service providers as a means of controlling these expenditures. Consequently, in the five years to 2017, industry revenue is expected to grow at an annualized rate of 3.3% to $135.3 billion, which includes a 2.8% increase in 2017 alone.

    ..

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    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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    Look under the hood?

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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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

  • Products & Markets
    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
    Competitive Landscape
    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
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Business Process Outsourcing Services Industry
    Includes:
  • 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
    Jargon & Glossary
    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.
  • Why buy this report?

    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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