Global Customer Care BPO Market, By Product Type (Onshore Outsourcing, and Offshore Outsourcing), By End-Users (Telecom and IT, BFSI, Healthcare and Life Sciences, Government and Public, Retail and E-commerce, Other End-Users) By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032

Report Overview

The Global Customer Care BPO Market Size accounted for USD 23,979.0 Billion in 2022 and is estimated to garner a market size of USD 43,096.6 Billion by 2032; rising at a CAGR of 6.2% from 2023 to 2032

Customer care BPOs, also known as Business Process Outsourcers, are specialized entities that handle customer inquiries via various communication channels such as telephone, email, chat, and social networking sites. These organizations are increasingly prioritizing customer satisfaction and recognizing the cost advantages associated with customer care BPO, particularly as consumers embrace digital channels.

Consequently, enterprises are directing their efforts toward enhancing customer engagement, aided by advanced technologies like Augmented Reality (AR), Virtual Reality (VR), and Artificial Intelligence (AI). The expansion of the market is attributed to the progression of the IT and telecommunications sectors, presenting lucrative prospects for global customer care solutions. Additionally, the incorporation of novel management tools and outsourced offerings within the telecommunications domain further contributes to the market’s growth.

Note: Actual Numbers Might Vary In The Final Report

Product Type Analysis

Onshore Outsourcing Accounted for The Largest Market Share

The Global Customer Care BPO Market is segmented based on product type into onshore and offshore outsourcing. Among these, offshore outsourcing customer care BPO held a major revenue share of 75.0%. Offshore outsourcing refers to contracting a company outside your country with significant time zones. It was also promoted as a means of providing services at much lower costs than hiring people in your country.

The need for offshore outsourcing continues to grow because there are many advantages to outsourcing, such as lower costs, access to specialized professionals who can do specific tasks that on-site workers cannot do (and faster), scalability of business processes, without having to invest time and energy in creating more staff, etc. Some well-known companies that have achieved success in offshore development include Henry Ford, which was the first to recognize that a company cannot be self-sustaining. He wanted to control every production stage personally but faced huge costs associated with servicing all aspects of the company’s operations. He turned to independent companies to take over some of his tasks. Today, Ford only produces 30% of their components independently, with the rest of their production outsourced.

The demand for onshore outsourcing is expected to expand throughout the projection period. Onshore outsourcing, colloquially referred to as domestic outsourcing, pertains to the acquisition of services from external parties situated outside an organization yet operating within the geographical confines of the same nation. The onshore outsourcing market is a niche business that has grown in popularity because it offers significant advantages over traditional methods. Onshore outsourcing is a great way for businesses of all sizes to save money. By teaming up with an onshore solutions provider, you get the know-how, resources, and tech you need to keep or expand your business. Outsourcing teams from overseas is still the most popular way to do it, but it comes with challenges. It is an alternative option that can similarly catalyze business growth.

End-User Analysis

The Information Technology and Telecommunication Sector is Dominant in the Market.

According to end-users, the market is segmented into IT and telecommunication, BFSI, healthcare and life sciences, government and public, retail and e-commerce, and other end-users. The BFSI segment leads the market with a 23.0% share in 2022. The BFSI industry is witnessing the growing adoption of digital-savvy banking, which is increasing customer inquiries. Competition in the industry is increasing as new players enter the market and existing players face stiff competition. Key BFSI players focus on acquiring and serving customers efficiently, gaining more customers, and keeping the existing ones. Due to these priorities, customer care services are becoming increasingly popular. Government initiatives to support cashless economies, cutting-edge credit management, payment technologies, and changes in consumer behavior are also changing how financial services firms operate and compete in the market for customer care BPO. All these factors contribute to the growth of customer care BPO in the BFSI industry.

The retail and e-commerce sector is the fastest-growing segment over the forecast period. Customer care services are a key component of the customer care services offered by businesses in the retail/e-commerce sector. These services are designed to streamline operations and stay up-to-date with the latest technological developments. Retail businesses offer customers front-end/back-end services such as call centers, live chats, and emails. Customer care services are essential to keep up with the ever-evolving customer demands and expectations. Outsourcing customer care services can reduce the costs and time associated with training resources and the corresponding investments required to modify infrastructure.

Note: Actual Numbers Might Vary In The Final Report

Additionally, various advances in customer care services in e-commerce are helping to minimize back-office costs while providing an improved customer experience. BPO service providers have the resources and expertise to complete customer care services efficiently and quickly without sacrificing quality. This is likely to positively contribute to the market growth during the projected time period.

Drivers

Organizations Are Becoming More Focused On Ensuring Greater Customer Satisfaction.

Consumers are directing heightened attention towards enterprises and their products in the contemporary landscape. They engage in comparisons of their interactions with different brands to swiftly arrive at well-informed, individualized choices. The linchpin for retaining existing patrons and attracting new ones lies in customer contentment. Thus, organizations persistently strive to enhance customer satisfaction. Zendesk’s 2020 Customer Experience Trends Report reveals that nearly 90% of businesses vie for supremacy based on customer experiences.

Correspondingly, SuperOffice’s survey encompassing approximately 2000 professionals from diverse industries finds that nearly 45% consider customer experience their foremost agenda over the upcoming half-decade. Given the pivotal role customers assume in commercial operations, companies diligently pursue strategies to cultivate their contentment, a mission often realized through the provision of customer care services. These services may be managed internally or entrusted to specialized BPO enterprises. In the contemporary whirlwind of business activities, astute enterprises harness diverse methodologies to elevate their revenue streams and fortify customer connections. It propels the advancement of this market.

Restraints

Overdependence on External Providers and Data Security Concerns

Anticipated is a swift expansion of the market in the forthcoming years. However, enterprises are harboring apprehensions regarding their excessive reliance on external outsourcing services. This unease stems from the potential jeopardy it poses to the confidentiality and unblemished state of user data. Safeguarding and upholding the security and soundness of customer information stands as a paramount preoccupation for all firms. Furthermore, the absence of robust structures to ensure service excellence, coupled with augmented financial constraints, constitutes the primary impediments that curtail market advancement.

Opportunity

The Emergence of Technologies Such As Artificial Intelligence and Cloud Computing

In the realm of Information Technology (IT), the term Business Process Outsourcing (BPO) denotes the practice of delegating non-essential business processes, including but not limited to Human Resources, Financial and Accounting activities, Customer Relationship Management (CRM), and the management of Supply Chain, to external parties. The evolution of IT’s role has transpired alongside the ascendancy of digital transformation and the migration of enterprises into the online domain. In this context, IT service providers have evolved beyond the mere provision of technological services, assuming the role of strategic collaborators that aid businesses in augmenting their revenue streams. The unabated expansion of the IT sector ushers forth a profusion of prospects for the burgeoning of the customer care BPO market.

Trends

Integration of Artificial Intelligence (AI) and Automation Technologies

Integrating Artificial Intelligence (AI) and automation technologies is transforming customer care. Chatbots and virtual assistants are becoming more sophisticated, providing instant responses to routine queries and liberating human agents to focus on complex issues that require empathy and nuanced understanding. This is a new trend which is likely to support market growth.

Key Market Segments

By Product Type

• Onshore Outsourcing
• Offshore Outsourcing

By End-User

• Telecom and IT
• BFSI
• Healthcare and Life Science
• Retail and E-commerce
• Others End-User

Regional Analysis

North America Holds Region Accounted Significant Share of the Global Customer Care BPO Market

In 2022, North America had the greatest market share with 60.09%. The North American region is poised for substantial market expansion, propelled by the robust industrial infrastructure present in advanced nations such as the United States and Canada, which has propelled manufacturing enterprises to innovate extensively across research, technology, and trade domains. The United States exhibits a host of attributes characteristic of developed nations, including forefront technology adoption, a high standard of living, and robust infrastructure, among others. The realm of technology has engendered a landscape of fierce competitiveness throughout North America. This phenomenon of heightened commercial rivalry has taken root across both well-developed and emerging economies, a consequence of the forces of globalization.

Consequently, enterprises have realigned their strategic focus towards effective customer experience management (CPM) as a means to both sustain their existing clientele and convert new patrons into loyal, recurring customers. Evidently, the demand from customers for superior products and services is on an ascendant trajectory. In response, a growing number of organizations are opting to leverage the services of customer care business process outsourcing (BPO) providers. Within the North American context, there has been a notable surge in the proportional contribution of BPO services and the overall quantum of outsourcing agreements on a global scale.

Note: Actual Numbers Might Vary In The Final Report

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherlands
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Market Share and Key Players Analysis

Strong Focus On the Adoption Of Digitalization To Enhance Customer Experience.

Prominent participants in this market are embracing an array of strategic maneuvers, encompassing collaborations, capital infusions to enrich customer experiences, and industry consolidation through mergers and acquisitions, among other tactics. The onset of the pandemic expedited the process of digital metamorphosis within the banking sector. Such key strategies are likely to present lucrative growth opportunities for the market during the projection period.

Market Key Players

The competitive realm of the Customer Care Business Process Outsourcing (BPO) market is dynamic, featuring established industry leaders with global reach, niche players specializing in specific sectors, technology-driven innovators leveraging AI and automation, agile start-ups introducing disruptive approaches, and providers focusing on tailored solutions for distinct industry verticals. Differentiation stems from client-centric strategies, data security emphasis, service innovation including omnichannel engagement and predictive analytics, and integration of sustainable practices. Collectively, these factors shape a landscape where diverse players vie to provide customer-centric solutions, each contributing to the evolution and innovation within the industry.

The following are some of the Top players in the industry

• Atento.
• TeleTech Holdings
• Acticall (Sitel)
• Webhelp
• Serco
• Infosys BPM
• Transcom
• West Corporation
• StarTek Inc
• Convergys
• Other Key Players

Recent Development

• In October 2022, Telus International revealed its official acquisition of WillowTree, a global comprehensive provider of digital solutions that specializes in crafting end-user experiences, encompassing native mobile applications and cohesive web interfaces.
• In May 2022, Concentrix disclosed its procurement of “ServiceSource,” a reputable company recognized for its adeptness in offering B2B Digital Sales and Customer Success solutions. Once the acquisition process concludes, Concentrix’s intention is to maintain the provision of its Customer Experience (CX) services to the newly gained client base of ServiceSource.

Report Scope