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DEMAND: BUSINESS PROCESS OUTSOURCING
Industry-specific BPO is in growth mode as enterprises increasingly adopt business support functions underpinned by industry-specific platforms, analytics and automation.
- ACV for industry-specific BPO awards in the first half of 2022 is up 145% over 1H21.
- The number of awards in 1H22 is up nearly 40%.
Background: BPO has changed a lot over the past several years. What was once primarily a labor arbitrage play focused on cost reduction in individual process silos is now a technology-led sector focused on end-to-end process optimization across the front, middle and back office.
The big picture: BPO ACV is up almost 60% YTD. And it’s not just industry-specific BPO driving growth. Customer experience ACV is up 30% YTD, and finance and accounting is up over 30% on its five-year average. BPO represents around 30% of all the ACV in the IT services sector, so growth in this sector has a big impact on the overall market. (See Data Watch)