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Business Process Outsourcing Statistics [2022]

The demand for specialized services and expertise in end-use industries has led businesses to tap into the global workforce through Business Process Outsourcing (BPO).

In Business Process Outsourcing, businesses can choose talent with the right technical expertise, and build a dedicated team of outsourced employees who have highly specialized skills perfect for providing industry-specific business support.

The global business process outsourcing market was valued at USD 245.9 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 9.1% from 2022 to 2030. (Grand View Research)

The Customer service outsourcing market is one of the fastest growing markets in the outsourcing industry. According to the Technavio 2020-2024 report, the global call center outsourcing market is poised to grow by USD 14.05 billion during 2021-2025, progressing at a CAGR of over 3% during the forecast period. 

Why do businesses outsource?

Businesses outsource primarily to increase efficiency (24%) and receive assistance from an expert (18%). (Clutch)

According to the Deloitte Global Outsourcing Survey (2020), outsourcing objectives include cost (70%), flexibility (40%), speed to market (20%), access to tools and processes (15%), and agility (15%).

What are the most commonly outsourced functions?

Among the most commonly outsourced jobs in small businesses are accounting and IT. 71% of financial service executives outsource or offshore some of their services… Small business outsourcing stats show that 37% of all accounting and IT tasks get outsourced. (Fortunly)

Businesses most commonly outsource more technical tasks, including their accounting (37%), IT services (37%), and digital marketing (34%) responsibilities. (Clutch)

According to Statista, as of 2021, 74% of firms use the business process outsourcing industry for their information technology services.

Tholons, a leading consulting firm, annually releases a Global Innovation Index to evaluate and rank the accelerated digital transformation of global industries and services. The index is useful to multinational corporations, countries, governments, multi-lateral agencies, analysts and investors. One of the lists in the Index is the Top 50 Digital Nations, which ranks top countries in the following criteria: Innovation / Digital, Super Cities, Population, Diversity & Inclusion.

The report lists the United States (#1), India (#2), Singapore (#5), Australia (#6), United Kingdom (#8), Mexico (#13), Brazil (#15).

The Philippines is also included in the Top 50 Nations list, ranking 18th among the 2021 Top 50 Digital Nations Global Innovation Index.

What makes the Philippines a top global Business Process Outsourcing Destination?

The Philippines is a moderate to highly populated country that contributes to around 1.14% of the total world population. The Philippines is a top business process outsourcing destination for investors who want to expand operations overseas. Here are reasons that make the country a top global Business Process Outsourcing destination:

The Philippines is regarded as a highly literate and proficient English-speaking country. Ninety-four of every 100 Filipinos five (5) years old and over are basic literate in 2019, according to the results of the 2019 Functional Literacy, Education and Mass Media Survey (FLEMMS). (Philippine Statistics Authority)

The Philippines remains attractive to investors with its budget-friendly hiring costs and associated minimum wage.

The Philippines’ labor cost is the lowest compared to its ASEAN counterparts.

The average daily minimum wage in the Philippines ranges from PHP 303 (USD 5.55) to PHP 537 (USD 10.01), depending on the specific Philippine province.

The Philippine BPO industry contributes nearly $30 billion to the economy each year. It is estimated that 1.3 million Filipinos were employed in over 1000 BPO companies in 2019, and that figure is showing 8-10% growth every year. It is estimated that the country holds 10-15% of the global BPO market. (Nexford Insights)

The Philippines ranked 9th in the leading countries in offshore business services worldwide in 2021 with an index score of 5.96. The index score was based on the ff. criteria: Financial attractiveness assessment, People skills and availability assessment, Business environment assessment, ad Digital resonance assessment.

Investors outsourcing to the Philippines are also eligible to fiscal and non-fiscal incentives.

Tax Incentives for IT-BPO firms: From 2016 to 2019, Department of Finance (DOF) Assistant Secretary Paola Alvarez noted that IT-BPO firms have enjoyed an average of PHP 26.30 billion in total tax incentives.

Connext Global Solutions is a global business process outsourcing provider based in the Philippines that builds, hires, trains, and manages offshore teams for your business. Clients can build a customized, 100% dedicated offshore team.

Connext Global Solutions provides flexible and scalable solutions that unlocks client growth. Get started with Connext today.