Software And BPO Services Global Market Report 2024

The software and BPO services market size has grown strongly in recent years. It will grow from $1,950.83 billion in 2023 to $2,086.8 billion in 2024 at a compound annual growth rate (CAGR) of 7.0%. The growth observed during the historical period can be attributed to various factors, including the impact of globalization, the pursuit of cost efficiency, the emphasis on focusing on core competencies, and the ability to achieve scalability through business process outsourcing (BPO) and software services. These elements have played a significant role in the development of the software and BPO services industry.

The software and BPO services market size is expected to see strong growth in the next few years. It will grow to $3,033.95 billion in 2028 at a compound annual growth rate (CAGR) of 9.8%. Anticipated growth in the forecast period can be attributed to various factors, including the push for digital transformation, the increasing importance of data privacy and security, the adoption of artificial intelligence (AI) and automation, the growth of remote work, the development of industry-specific solutions, and the focus on sustainability and environmental, social, and governance (ESG) principles. Major trends expected in the forecast period include the continued electrification and lightweighting of processes and products, advancements in materials, the integration of additive manufacturing, the use of digitalization and connectivity, and a heightened emphasis on collaboration and partnerships in the software and BPO services industry.

The emergence of startups as significant clients for software and BPO service providers is expected to be a driving force in the market. Startups are increasingly turning to specialized agencies and companies to outsource non-core operations like finance and recruitment, driven by the pursuit of cost-efficiency and the need to focus on their core activities. For example, Leverage Edu, an India-based EdTech startup that connects students with mentors, has saved approximately 40% of its capital by outsourcing finance and tech operations. The growing number of startups, expected to reach 10,500 in India by 2020, offers new opportunities for the software and BPO services market to expand its client base and boost revenue.

The primary categories within the software and BPO services industry encompass software services and BPO services. BPO services refer to the tasks outsourced to third-party service providers to handle essential business processes. These services are utilized by various types of enterprises, including large corporations and small and medium-sized businesses, and are commonly employed in sectors such as financial services, retail and wholesale, information technology, manufacturing, healthcare, and other industries.

The software and BPO services market research report is one of a series of new reports that provides software and BPO services market statistics, including software and BPO services industry global market size, regional shares, competitors with a software and BPO services market share, detailed software and BPO services market segments, market trends and opportunities, and any further data you may need to thrive in the software and BPO services industry. This software and BPO services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The burgeoning e-commerce industry is anticipated to fuel the growth of the software and BPO services market. E-commerce involves buying and selling goods and services and conducting financial transactions or data exchange through electronic networks, primarily the Internet. Software and BPO service providers offer e-commerce companies access to skilled agents trained to handle customer inquiries and ensure high-quality customer support. For instance, in September 2022, consumer e-commerce represented 30% of the UK's total retail sector, with annual e-commerce revenue exceeding $120 billion. According to the United Nations Conference on Trade and Development, the rise of e-commerce increased online retail sales' share of total retail sales from 16% to 19% in 2020. Consequently, the growing e-commerce industry is a driving force behind the software and BPO services market.

High employee attrition rates within the BPO services industry are expected to pose a challenge to the BPO services market's growth in the forecast period. The Analytics India Employee Attrition Study reported that, in 2017, the USA had the highest attrition rate at 42% in the BPO services industry, followed by Australia at 29%, Europe at 24%, and India at 18% attrition. The repercussions of high attrition include increased costs for hiring, training, and developing new employees, difficulty in attracting new clients, and decreased productivity in the BPO services sector. These factors are likely to reduce the profitability and stability of BPO providers in the market, serving as a hindrance to growth. Numerous software services companies are adopting quality standards like the Information Technology Infrastructure Library (ITIL) and the International Organization for Standardization (ISO) 9001 to align their IT services with business requirements. ITIL defines processes, procedures, and tasks that organizations can apply to deliver software products and services meeting predefined quality standards. Likewise, ISO 9001 is a quality standard that ensures products and services meet specific quality metrics and are reliable. For instance, over 1.1 million ISO 9001 certificates have been issued to companies across various sectors, including software services, medical devices, oil and gas, automotive, and government organizations.

Major companies operating in the software and BPO services market are intensifying their focus on introducing AI-based real-time contact center solutions to maximize their profits. AI assists contact center agents by analyzing customer needs and emotions, offering real-time coaching to guide them in delivering the best customer service. In October 2022, Qualtrics, a US-based software company, introduced Real-Time Agent Assist and Automated Call Summaries Solutions for call centers. These solutions employ AI and machine learning to provide personalized coaching and suggestions to contact center agents during customer calls. Real-Time Agent Assist helps agents enhance their customer support skills by analyzing real-time conversations and offering improvement prompts. Automated Call Summaries generate summaries of each customer call, including sentiment, discussed topics, and action items, enabling better agent performance and overall contact center tracking.

In September 2021, Sitel Group, a US-based customer service company specializing in BPO services, successfully concluded its acquisition of Sykes Enterprises, Inc., for approximately $2.2 billion. This strategic move allows Sitel to diversify its product and service offerings, further benefitting its customers. Sykes Enterprises is a well-known business process outsourcing company.

Major companies operating in the software and BPO services market include Tata Consultancy Services Limited, Nippon Telegraph and Telephone Corporation, Telefonaktiebolaget LM Ericsson, Cognizant Technology Solutions Corporation, Dell Technologies Inc., Hewlett Packard Enterprise Company, Microsoft Corporation, Capgemini SE, Cisco Systems Inc., Infosys Limited, Accenture PLC, International Business Machines Corporation, Wipro Limited, HCL Technologies Limited, DXC Technology, Genpact Limited, NTT Data Corporation, Atos SE, CGI Inc., Larsen & Toubro Infotech Limited, Tech Mahindra Limited, WNS Global Services Limited, Syntel Inc., LTIMindtree Limited, Hexaware Technologies Limited, Mphasis Limited, Virtusa Corporation, Zensar Technologies Limited, EPAM Systems Inc, Citibank NA, ExlService Holdings Inc., WNS Limited, Wipro Limited, Hinduja Global Solutions Limited, Sutherland Global Services Inc., Teleperformance SE.

Asia-Pacific was the largest region in software and BPO services market in 2023. North America was the second largest region in software and BPO services market. The regions covered in the software and BPO services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the software and BPO services market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa

The software and BPO services market includes revenues earned by entities by providing software and BPO services including application software programming services, computer program (software) development, computer software support services and web design services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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