NEW JERSEY — Market Research Intellect projects that the global Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) industries will hit a market value of US$800 billion by 2031.
This reflects a strong compound annual growth rate (CAGR) of 7.5% from 2025 to 2031, a significant improvement from the estimated US$450 billion in 2024. As firms prioritize globalization and digital transformation, outsourcing is also increasingly sought after as a critical component in business processes.
This heightens the competition between established and emerging service providers, such as:
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Supplementary Information for This Forecast
Aside from this report from Market Research Intellect, other organizations have also forecasted their numbers, which are sometimes more conservative or expansive. Some highlights include:
- Growth Market Reports indicate a 7.1% CAGR from 2025 to 2033, with the market reaching 1.2 trillion by 2033.
- WiseGuy Reports projects a market value of US$871.5 billion by 2031.
While the predictions are highly distinct, as they’re dependent on organizations’ different definitions of the ITO + BPO market, they reflect the high plausibility that the market will reach $800 billion by 2031.
Main Drivers of This Growth
Based on trends and relevant reports, these are some of the main factors pushing businesses toward expansion:
- Efficiency, cost optimization, and specialized services
- Cloud infrastructures and IT modernization
- Cybersecurity, compliance, and data analytics
- Scalable and flexible delivery models
Possible Risks and Challenges
This growth also underscores the possible challenges that the industries must address. Here are some significant points or constraints to look out for:
- Talent shortages
- Infrastructure gaps
- Regulatory and compliance issues
- Geopolitical pressures
- Economic and inflation pressures
