Business Analytics BPO Services Industry Snapshot
The global valuation of business analytics BPO services market will total US$ 6.2 Bn for 2021, as per the latest Future Market Insights (FMI) study. The market is expected to reach US$ 22.9 Bn, growing at a CAGR of 13.9% between 2021 and 2031.
FMI’s newly released data on the business analytics BPO services demand outlook indicates a 12.6% y-o-y growth in 2021. While manufacturing sector is projected to remain the dominant end user, demand in the BFSI segment will grow at a higher pace of 17.6% CAGR over the assessment period.
Key Points Covered in Business Analytics BPO Services Market Survey
- Market estimates and forecast 2016-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Business Analytics BPO Services and how to Navigate
- Recommendation on Key Winning Strategies
2016-2020 Business Analytics BPO Services Demand Outlook Compared to 2021-2031 Forecast
Increasing volume of enterprise data coupled with soaring need for embedded analytics is likely to fuel the demand for business analytics BPO services over the coming years. The sales of business analytics BPO services are estimated to rise at 13.9% CAGR between 2021 and 2031 in comparison above 10.5% CAGR registered during 2016-2020.
Companies are outsourcing such services to reduce the burden of work and concentrate on other core aspects of their operations. Outsourcing can help companies to reduce risk, and allow companies to ramp the activities quickly and while offering flexibility. Due to outsourcing, companies don’t need to invest in recruiting and training expensive resources for their business.
Outsourcing helps companies to offer better services with high quality deliverables while decreasing the lead time that takes the company’s product to reach the marketplace. Outsourcing eliminates the need for investment in infrastructure as the outsourcing partner takes the responsibility of the businesses processes and develops the infrastructure for the same.
Global demand for business analytics BPO services is anticipated to increase from ~US$ 6.2 Bn in 2021 to ~US$ 22.9 Bn by 2031.
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How is Increasing Demand for Real-time Analytics Bolstering Market Growth?
Businesses are modernizing their data infrastructure to meet real-time demand of customers. Businesses are also using real-time analytics for understanding trends, improving customer experience, and to detect fraud.
Up-to-the-minute information about customers, their purchase history, demographics, and preferences help in making insightful business decisions. The need for real-time data analytics has tremendously evolved since 2020 due to the pandemic. Businesses are using real-time data analytics for developing strategies to respond to unforeseen situations.
Implementing live dashboards will help businesses to immediately access relevant information regarding their business. However, the demand for real-time data has increased during the pandemic and this is having a positive impact on market growth.
What is the Impact of the COVID-19 Crisis on Business Analytics BPO Services?
The COVID-19 pandemic has impacted every sector and social distancing norms have driven the transition towards digitalization while ensuring safety. BPO organizations have shifted from single-function operations to multi-functional operations to reduce the risk of viral transmission at a single location.
Many companies are looking to move their operations to low-cost locations. Cloud-based work platforms are also being considered. A shift to a standard cloud-based work platform can reduce manual work and lead to work automation, thereby improving the efficiency and effectiveness of employees.
The pandemic has forced BPO companies to transition quickly to automated techniques to ensure accuracy and efficiency. Thus, the demand for business analytics is estimated to grow around 10.2% to 12.6% Y-o-Y from 2019 to 2021.
How is the Business Analytics BPO Services Market Faring in the U.S.?
North America is predicted to remain an attractive market during the forecast period, according to Future Market Insights. According to the study, the U.S. is expected to account for more than 82% of the North America share through 2031.
The business analytics BPO services sales in the U.S. is projected to offer lucrative opportunities for revenue generation over the forecast period. Dominance of North America is attributed to the increased demand for business analytics outsourcing from sectors including BFSI, retail, telecommunication and healthcare.
The presence of leading players such as Microsoft, IBM, and Cognizant, to name a few will continue driving sales in the country. With the growth of rapid processing, models enabled the same instance of data to support batch analytics, interactive analytics, global messaging, database, and file-based models in different types of organizations in the country.
Why is the Demand for Business Analytics BPO Services Increasing in India?
Demand for business analytics BPO services in India is expected to rise at nearly 26% CAGR over the forecast period owing to rapid rate of industrialization in the region and growing number of start-ups investing in business analytics solutions.
Analytics is no longer the purview of just marketing, IT, and data rich firms. Firms across sectors and types, including industrial and FMCG companies, are increasingly adopting analytics and investing both capital and operational resources in the data science domain in order to gain a competitive edge in the Indian market.
As per the report, India is recognized as a fast-growing industry, and it holds a revenue share of over 17.0% in 2021.
How is the U.K. Contributing towards Business Analytics BPO Services Sales?
Demand for business analytics BPO services in the U.K. is estimated to total US$ 256.9 Mn by the end of 2021. The widespread adoption of advanced technological solutions, such as the internet of things (IoT), machine learning and artificial intelligence (AI), in business processes, has increased the utilization of business analytics to manage large and complex data sets.
Nowadays, organizations in the U.K. are subcontracting their analytics functions to business process outsourcing (BPO) companies or third-party service providers as it helps them to minimize cost on hiring in-house staff and focus on their core business operations, thereby driving the growth of business analytics BPO services in the U.K.
Why is the Demand for Business Analytics BPO Services Rising in Japan?
Japan is expected to account for more than 43% of the East Asia market through 2031. The business analytics BPO services adoption rate among organizations in Japan has always lagged behind North America and Europe, despite the relative maturity of the Japanese market. However, the combination of cost-saving pressures, increasing competition, and global business expansion will fuel demand BPO services in Japanese companies.
Japan's economy is dominated by the BFSI, IT, and manufacturing industries. Rising standards, innovations, and automation have led to a vast amount of data being made available to large enterprises.
This field uses analytics to achieve operational efficiency in the production of goods. Business organizations are using predictive analytics to evaluate consumer spending habits to offer them better services and increase customer retention.
Computer manufacturers also use business intelligence and analytics to predict hub breakdowns. Such advantages are expected to encourage the adoption of business analytics BPO services across Japan.
Why are Supply Chain Analytics Services in High Demand?
Supply chain analytics services are expected to contribute nearly 28% of the overall share in 2021. The use of analytics in supply chains is a great way to provide an edge over competition. With predictive analytics, manufacturers can leverage data within their systems to derive real-time insights, using that information to optimize business decisions, be it tactical, strategic, or operational.
What are the Prospects for Sales of Business Analytics BPO Services for SMEs?
Demand in small and medium enterprises or SMEs is expected to grow at 14.9% CAGR between 2021 and 2031. Small and medium enterprises are facing challenges in finding, winning, and keeping customers, especially as their business grow.
When it comes to finding new leads, most SMEs are facing challenges in reaching their target audiences. A lack of infrastructure to track and manage leads is also a matter of concern. Business analytics service providers can focus on offering analytics solutions such as marketing analytics, risk analytics, and supply chain analytics to offer a connected experience to enhance their customer base and target segment.
Will Application in BFSI Sector Continue Rising?
Demand in the BFSI sector is expected to increase at a remarkable CAGR of 17.6% over the forecast period. With the proliferation of mobile devices and apps and increasing use of the internet, financial institutions face changing client demands, strict control and risk management, and mounting competition in a highly dynamic market.
Business analytics tools used by the banking and finance industry enables them to leverage customer data for insights which leads to better business decisions and efficient and smarter management practices. Banking and finance institutions are using business analytics BPO services to reduce risk, create a competitive advantage, and eventually drive profitability.
Leading companies discussed in the report are focusing on acquisitions and strategic collaborations to establish their presence in various developing regions. Strategies adopted by them include innovation, collaborations with key players, and strengthening of regional and global distribution networks.
- In June 2020, Wipro Ltd. announced its collaboration with IBM Corporation to develop hybrid cloud offerings to help businesses manage, migrate, and transform mission-critical workloads and applications, with security across private or public cloud and on-premises IT environments.
- In February 2020, Accenture PLC, acquired Mudano, a data and machine learning business focused on financial services. Through this acquisition, the company enhanced its data transformation and analytics services for financial enterprises in the U.K.
- DXC Technology announced insurance business outsourcing for applications in life & retirement platforms in June 2021.
Scope of Report
Historical Data Available for
USD Million for Value
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, Australia & New Zealand, GCC Countries, Turkey, and South Africa
Key Segments Covered
Solution, Enterprise Size, Vertical, and Region
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Key Questions Answered in the Report
Which region is expected to showcase significant growth in business analytics BPO services sales?
South Asia & Pacific is projected to register strong growth in the market with a CAGR of above 19% during the forecast period. However, North America currently leads the global market, with market share of more than 31% in 2021.
Which is the most attractive standalone service in the business analytics BPO services industry?
Supply chain analytics services is currently the most attractive in the market, accounting for nearly 29% of revenue generated in 2020. However, data analytics & visualization services are expected to witness robust CAGR of over 18% throughout the forecast period.
Who are some of the leading companies offering business analytics BPO services?
Some of the leading companies in this market are IBM Corporation, Accenture, Wipro Limited, Capgemini, and Infosys Limited, among others. As per FMI, nearly 60% of the market share is currently covered by the top 15 players.
Which are the leading industries adopting business analytics BPO services?
The retail sector is expected to dominate the market over the forecast period, accounting for US$ 5.4 Bn by 2031. However, the demand in BFSI sector is estimated to increase at a CAGR of 17.6% over the forecast period.
How much is the global business analytics BPO services demand worth?
The business analytics BPO services industry was valued at ~US$ 5.5 Bn in 2020, and is estimated to grow at an exceptional pace with a CAGR of 13.9% to reach ~US$ 22.9 Bn in 2031.
What is the demand outlook for business analytics BPO services?
The demand for business analytics BPO services is expected to total ~US$ 6.2 Bn by the end of 2021, and is likely to reach ~US$ 22.9 Bn by 2031.
At what rate did the business analytics BPO services market rise in the last 5 years?
The market in last 5 years (2016 – 2020) grew by a CAGR of 10.5%.
What are the key trends prevailing in business analytics BPO services industry?
Key trends shaping growth of the market include:
- Increasing focus of service providers on hiring, training, motivating, and retaining consultants
- Rising trend of embedded analytics
- Increasing volume of enterprise data
What factors are driving demand of business analytics BPO services?
Increase in cloud-based deployment among SMEs, modernization of business environments and growing need for customer analytics are anticipated to encourage the growth of business analytics BPO services market.
Which countries are key providers of business analytics BPO services?
Countries involved in providing business analytics BPO services solutions include the U.S., France, India, and U.K.
At what rate did the global business analytics services market grow between 2020 and 2021?
The global market growth between 2020 and 2021 accounted for 12.6%.
What are the top 5 countries driving demand for business analytics BPO services?
Top 5 countries driving demand for business analytics BPO services include the U.S., Brazil, Germany, China, and GCC countries.
What is the North America business analytics BPO services market outlook?
North America is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. The U.S. is expected to account for more than 82% of the North America market through 2031.
At what rate is the Europe business analytics BPO services market expected to grow?
The business analytics BPO services industry in Europe is estimated to expand at a CAGR of 11.9% over the forecast period.
What are the key business analytics BPO services market statistics in South Korea and Japan?
The business analytics BPO services demand in Japan and South Korea totaled US$ 308.9 Mn and US$ 179.4 Mn, respectively in 2020 and is projected to register CAGR of 19.2% and 11.7% respectively between 2021 and 2031.
Business Analytics BPO Services Outlook by Category
- Data Analytics & Visualization Services
- Risk Analytics Services
- Marketing & Sales Analytics Services
- Supply Chain Analytics Services
- Financial Analytics Services
By Enterprise Size:
- Small and Medium Enterprises (SMEs)
- Large Enterprises
- IT & Telecom
- Travel & Hospitality
- North America
- Latin America
- East Asia
- South Asia & Pacific
- Middle East and Africa (MEA)