Industry-specific BPO is in growth mode as enterprises increasingly adopt business support functions underpinned by industry-specific platforms, analytics and automation.
The details:
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)