BPO Services: Stats and Figures you should know!

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The concept of handing over business tasks actually came into play a few decades ago when businesses started outsourcing with an aim to reduce operational costs and bring back focus on their core activities. The global outsourcing industry has covered a long journey of evolution since then. Owing to the advent of technology, the business tasks are now much easier to execute from a remote location.

BPO services are becoming more and more impactful for the businesses across the globe. This is the reason, every day companies are choosing to delegate more and more of their business operations to a competent third-party vendor. Outsourcing the call center services offers your business affordability aspect along with increased efficiency and enhanced customer experience. Still, some of the businesses do not understand the crucial stand of BPO sector. Hence, we are presenting some of the influential numbers depicting the rise of call center sector and also claiming the fact that it is here to stay for a long time.

In this blog, we are going to walk you through some of the crucial trending stats and facts of reliable BPO services providers and corresponding sector. Let’s start.

Stats related to outsourcing

Mentioned below are the stats of call center industry that can help you understand the current status of outsourcing and its implication:

Around 78% of the companies across the globe admit feeling positive about their contract and relationship with their outsourcing partner.

Let’s see the reasons that make businesses go for outsourcing:

Out of the most prominent reasons for which businesses opt to outsource, cost-cutting leads the way with 59% of companies favoring it.  Bringing focus on core competencies comes on the second position with around 57% of businesses choosing to handover operations with the same reason.

Another 47% of the companies prefer outsourcing with the aim to solve the capacity issue in business. Since service rating also matters to the businesses, hence around 31% of the organizations outsource so as to improvise the overall service experience. Some other reasons also have their share of getting access to intellectual capital (28%), handling business environment (17%), and driving wider conversion change (17%).

Now, let’s shift our focus to the industries that favor outsourcing most:

  • IT-BPO
  • Energy
  • Healthcare and Pharmaceuticals
  • Defense
  • Travel and transport
  • Telecom
  • Retail
  • Media

Also, there are some major regions that are known to prefer outsourcing best:

  • North America and South America (Americas) (42%)
  • Europe, Middle East, and Africa (35%)
  • Asia and Oceanic (23%)

If we talk about the United States alone, there have been some major strategy adoptions by the business owners. The U.S. has seen 57% businesses increasing the use of outsourcing strategy. Apart from this, 34% of the companies have decided to revamp the outsourcing divisions. Additionally, there are around 9% of the organizations that have chosen to terminate their outsourcing contracts.

So, it is a mixed bag of in and out, but majorly businesses in the U.S. are looking toward outsourcing with a positive mindset.

Did you know how do the outsourcing industry has grown in last 17 years or so? Well, here is a glimpse.

Market share of outsourcing sector:

  • Year: Market Size (global)
  • 2000: $45.6 Billion
  • 2008: $87.5 Billion
  • 2012: $99.1 Billion
  • 2013: $82.9 Billion
  • 2014: $104.6 Billion
  • 2015: $88.9 Billion

Outsourcing and Automation

Jobs related to BPO services industry are getting affected most by the inclusion of automation and related technology. Take a look:

  • 1 new automation management is created at the cost of 4 jobs lost.
  • Approximately 1 million jobs are at the risk in the countries such as U.S., Poland, India and the Philippines due to the advent of automation.
  • Since creative jobs cannot be automated, so outsourcing is covering the higher level jobs now.

Top outsourcing destinations

BPO services are getting popular at a fast pace and there are few countries and cities that top the list:

Top outsourcing nations:
  1. India
  2. China
  3. Philippines
  4. Brazil
  5. Mexico
  6. Canada
  7. Chile
  8. Vietnam
  9. Poland
  10. Ireland
Here is a list of top cities with most call centers:
  1. Bangalore
  2. Mumbai
  • New Delhi
  1. Manila
  2. Hyderabad
  3. Sau Paulo
  • Dublin
  • Krakow
  1. Chennai
  2. Buenos Aires

Final Takeaway

The conventional outsourcing model is been jolted by digital clouts such as cloud, AI, mobile, social media, and big data. The outsourcing sector is now becoming more competing with nations such as Canada, Chile, Israel, and Brazil now coming into play. The companies offering BPO services should comply with the latest trends of the market and ensure to sustain the evolving business requirements.