Europe Business Process Outsourcing (BPO) Market, By Outsourcing Type (Offshore, Nearshore, and Onshore), Service (Voice Processing, Telemarketing Services, Image Editing Services, Virtual Staffing Services, and 3D Visualization Services), Application (Customer Care, Finance and Accounting, Talent and HR Services, Sales and Marketing, Sourcing, Procurement & Supply Chain, Facilities and Administration, Product Engineering, Training, and Others), Deployment Mode (Cloud and On Premise), Organization Size (Large Enterprises and SMEs), Ownership (Captive and Third Party), Outsourcing Approach (Best- Shore, Bundled Services, Contract Based, and Fee For Service), End User (IT and Telecommunication, Manufacturing, BFSI, Government & Defense, Transportation and Logistics, Retail & E-Commerce, Travel and Hospitality, Healthcare, Energy and Utilities, Education, and Others) – Industry Trends and Forecast to 2031.
Europe Business Process Outsourcing (BPO) Market Analysis and Insights
Business process outsourcing companies are always being first to adopt and implement new technologies or methods in their operations, which shows that they are very agile today for being in the market; organizations need to be prepared to adopt instant technological change in their operations. So, as companies are implementing and outsourcing to become agile for their survival, thus it is acting as a major factor driving the market growth.
Data Bridge Market Research analyzes that the Europe Business Process Outsourcing (BPO) market is expected to reach USD 132.57 billion by 2031 from USD 72.45 billion in 2023, growing with a CAGR of 7.9% in the forecast period of 2024 to 2031.
|
Report Metric
|
Details
|
|
Forecast Period
|
2024 to 2031
|
|
Base Year
|
2023
|
|
Historic Years
|
2022 (Customizable from 2016-2021)
|
|
Quantitative Units
|
Revenue in USD Billion
|
|
Segments Covered
|
Outsourcing Type (Offshore, Nearshore, and Onshore), Service (Voice Processing, Telemarketing Services, Image Editing Services, Virtual Staffing Services, and 3D Visualization Services), Application (Customer Care, Finance and Accounting, Talent and HR Services, Sales and Marketing, Sourcing, Procurement & Supply Chain, Facilities and Administration, Product Engineering, Training, and Others), Deployment Mode (Cloud and On Premise), Organization Size (Large Enterprises and SMEs), Ownership (Captive and Third Party), Outsourcing Approach (Best- Shore, Bundled Services, Contract Based, and Fee For Service), End User (IT and Telecommunication, Manufacturing, BFSI, Government & Defense, Transportation and Logistics, Retail & E-Commerce, Travel and Hospitality, Healthcare, Energy and Utilities, Education, and Others)
|
|
Countries Covered
|
U.K., Germany, France, Spain, Italy, Netherlands, Switzerland, Russia, Belgium, Turkey, Poland, Sweden, Finland, Norway, Denmark, and Rest of Europe
|
|
Market Players Covered
|
IBM Corporation, Cognizant, Capgemini, Genpact, Wipro, Accenture, Tata Consultancy Services Limited, HCL Technologies Limited, NTT DATA, Inc., WNS (Holdings) Ltd., NCR VOYIX Corporation, Tech Mahindra Limited, Infosys Limited, Concentrix Corporation, SunTec Web Services Pvt. Ltd., and Invensis Technologies Pvt. Ltd among others
|
Market Definition
The Europe Business Process Outsourcing (BPO) market refers to the industry where businesses engage external service providers to handle specific business processes, functions, or tasks. In this market, organizations delegate non-core functions to third-party service providers, allowing them to focus on their core competencies and strategic objectives. Business process outsourcing in Europe encompasses a wide range of services, including but not limited to customer support, finance and accounting, human resources, IT support, and industry-specific processes.
Europe Business Process Outsourcing (BPO) Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:
Drivers
- Increasing Need for Business Agility
Business agility can sustain its maximum potential in terms of profits and employees amidst a dynamic external and internal environment. It enables organizations to innovate and deliver more effectively, thus turning market disruption into a competitive advantage while thriving in complex environments.
Undergoing a cultural change is difficult in achieving business agility, as it requires commitment from top leadership. The competition has increased exponentially, and established methods such as scrum and safe which may not be good enough. As a result, companies are switching to BPO to increase efficiency and reliability while minimizing risk. Whether it is a short-time project or one that can go on for years, any business can benefit from outsourcing because of the staffing flexibility that most outsource service provider’s offer. This is done by focusing on customer-centric goals and promoting collaboration among the team, which can lead to innovations.
- Growing Preference for Cloud Technology and its Significance on Process Automation
Traditional operations and business process outsourcing models are reinventing into smarter workflows using automation, AI, the internet of things (IOT), the cloud, and other new technologies. Businesses must evolve to more intelligent, fully orchestrated processes that consider clients, employees, suppliers, and business partners to remain relevant and continue their growth.
Every business function, such as procurement, human resource, finance, and accounting, needs to become more digitalized to predict future outcomes and empower their teams. They need to adopt new technologies; such as cloud technology.
Opportunity
- Focus on Multi-Workflow Scheduling of Business
Earlier, automated workflows were reserved only for wealthy organizations willing to invest heavily in complex CRM and ERP systems. People started leveraging its power to automate their complex workflow processes to achieve process integration as the technology transformed. BPO expanded in recent years as companies see the benefit in reducing costs, improving efficiency and customer service, and enabling high growth while working with limited resources.
Cloud workflow technology can improve and optimize business processes, allowing to achieve better process control and increasing the flexibility and quality of the process. This technology makes it convenient for building, managing, executing, and monitoring. It has also enabled organizations to reach new standards of efficiency.
Restraint/Challenge
- Growing Concerns Regarding Data Security and Privacy Concern
Various data security control solutions such as authentication, access control, encryption, back-ups & recovery, data masking, and others are present. Still, sometimes, these solutions are not enough to prevent an attack on data security. In the past one and a half decades, the attacks on data security have increased significantly. Various types of data security risks can arise, such as data tampering, data theft, and modifying user identities. Technological advancements have boosted business activities on the one hand, but they have also presented severe privacy issues on the other hand. One of the solutions of BPO is the business process as a service (BPaaS) which uses the latest technologies such as cloud computing, but they are also susceptible to similar data breach attacks due to their heavy reliance on the cloud, their threat surface area is also high.
Recent Developments
- In September 2022, Capgemini announced that it had acquired Knowledge Expert SA, a digital transformation service provider specializing in Pega technologies. The acquisition improves Capgemini's capabilities in its European offerings for digital customer experience
- In October 2020, Accenture completely acquired N3, an Atlanta-based business-to-business (B2B) sales firm, which combines specialized talent with machine learning (ML) and artificial intelligence (AI) capabilities to enable smarter, more efficient sales interactions. The company will expand its offering capabilities and business in other regions with this acquisition
Europe Business Process Outsourcing (BPO) Market Scope
Europe Business Process Outsourcing (BPO) market is segmented on the basis of outsourcing type, service, application, deployment mode, organization size, ownership, outsourcing approach, and end user. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Outsourcing Type
- Offshore
- Nearshore
- Onshore
On the basis of outsourcing type, the market is segmented into offshore, nearshore, and onshore.
Service
- Voice Processing
- Telemarketing Services
- 3D Visualization Services
- Image Edition Services
- Virtual Staffing Services
On the basis of service, the market is segmented into voice processing, telemarketing services, 3D visualization services, image edition services, and virtual staffing services.
Application
- Talent and HR Services
- Sales and Marketing
- Finance and Accounting
- Sourcing Procurement & Supply Chain
- Facilities and Administration
- Customer Care
- Training
- Product Engineering
- Others
On the basis of application, the market is segmented into customer care, finance and accounting, talent and HR services, sales and marketing, sourcing, procurement & supply chain, facilities and administration, product engineering , training, others.
Deployment Mode
- On premise
- Cloud
On the basis of deployment mode, the market is segmented into on premise and cloud.
Organization Size
- Large Enterprises
- SMEs
On the basis of organization size, the market is segmented into up to large enterprises and SMEs.
Ownership
- Captive
- Third Party
On the basis of ownership, the market is segmented into captive and third party.
Outsourcing Approach
- Best-Shore
- Bundled Services
- Contract Based
- Fee for Service
On the basis of outsourcing approach, the market is segmented into best-shore, bundled services, contract based, and fee for service.
End User
- BFSI
- IT and Telecommunication
- Healthcare
- Manufacturing
- Retail & E-Commerce
- Government & Defense
- Transportation and Logistics
- Travel and Hospitality
- Education
- Energy and Utilities
- Others
On the basis of end user, the market is segmented into IT and telecommunication, manufacturing, BFSI, government & defense, transportation and logistics, retail & E-commerce, travel and hospitality, healthcare, energy and utilities, education, others.
Europe Business Process Outsourcing (BPO) Market Regional Analysis/Insights
Europe Business Process Outsourcing (BPO) market is segmented on the basis of outsourcing type, service, application, deployment mode, organization size, ownership, outsourcing approach, and end user.
The countries covered in the Europe Business Process Outsourcing (BPO) market report are U.K., Germany, France, Spain, Italy, Netherlands, Switzerland, Russia, Belgium, Turkey, Poland, Sweden, Finland, Norway, Denmark, and rest of Europe.
U.K. is expected to dominate in the Europe region due to its robust business infrastructure, skilled workforce, and strategic geographical location. With a mature and well-established outsourcing ecosystem, the U.K. attracts global enterprises seeking high-quality BPO services.
The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends, and Porter’s five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of regional brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Europe Business Process Outsourcing (BPO) Market Share Analysis
Europe Business Process Outsourcing (BPO) market competitive landscape provides details of the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Europe presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.
Some of the major players operating in the Europe Business Process Outsourcing (BPO) market are IBM Corporation, Cognizant, Capgemini, Genpact, Wipro, Accenture, Tata Consultancy Services Limited, HCL Technologies Limited, NTT DATA, Inc., WNS (Holdings) Ltd., NCR VOYIX Corporation, Tech Mahindra Limited, Infosys Limited, Concentrix Corporation, SunTec Web Services Pvt. Ltd., and Invensis Technologies Pvt. Ltd among others.
SKU-