Procurement Market Intelligence Report
Business Process Outsourcing Services
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Business Process Outsourcing Services Global Overview
Definition
Summary
Business process outsourcing (BPO) refers to companies contracting with third-party providers to perform various business functions, such as human resources, finance, and customer services. Common types of buyers in the BPO market include large multinational corporations and small and medium-sized businesses. These companies outsource various business processes to suppliers, which are typically specialized BPO companies that have expertise in a particular function or industry.
This Report Includes:
- Payroll Processing Services
- Benefits Administration Services
- Customer Services
- IT Support Services
- Network Management Services
Not in this Report:
- Legal Services
- Accounting Services
- Consulting Services
- Training Services
Global Business Process Outsourcing Services Procurement Trends
Discover the top international trends affecting procurement in the global Business Process Outsourcing Services market.
Warning Trends
United States announces additional tariffs on China
- In February 2025, the United States announced 10.0% tariffs on imports from China. The tariffs took effect on February 4, 2025.
- The tariff plan applies to all merchandise imported for consumption and applies in addition to other duties and fees that are in place, with limited exceptions.
- In response, China announced a 15.0% tariff on products such as coal and natural gas, as well as a 10.0% tariff on crude oil, agricultural machinery, pickup trucks, and large cars. The tariff executive orders indicate retaliatory tariffs could lead to further escalation in rates.
- Providers in this market rely on inputs often sourced from China. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
United States postpones plans for sweeping tariffs on Canada and Mexico
- In February 2025, the United States announced 25.0% tariffs on imports from Canada and Mexico.
- Though initially set to take effect on February 4, 2025, the implementation of tariffs on Canada and Mexico has been postponed 30 days to allow for further negotiation.
- The tariff plan initially proposed by the US applies to all merchandise imported for consumption and applies in addition to other duties or fees that are in place, with limited exceptions.
- Providers in this market rely on input costs often sourced from an affected country. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
Neutral
GSA memo asks agencies to review consulting contracts
- The General Services Administration (GSA) recently issued a memorandum asking government agencies to review their consulting contracts with the ten highest-paid firms. The ten firms are Accenture PLC (Accenture Federal Services), Booz Allen Hamilton Inc., CGI Group Inc. (CGI Federal), Deloitte Touche Tohmatsu (Deloitte Consulting), General Dynamics Corporation (General Dynamics IT), Guidehouse Inc., Huntington Ingalls Industries Inc. (HII Mission Technologies), International Business Machines Corporation (IBM), Leidos Holdings, Inc., and Science Applications International Corporation, Inc. (SAIC).
- The memo states that agencies are strongly encouraged to cut non-essential consulting contracts, providing a list of those intended to be terminated by March 7, 2025. By April 19, 2025, agencies must submit their reviews of non-GSA consulting service contracts.
- According to the GSA, the ten consulting firms identified are set to receive $65.0 billion in fees in 2025. The Department of Defense (DoD) has stated its intention to terminate or descope contracts non-essential to the DoD’s purposes; some of the largest market players with high-value DoD contracts include Booz Allen Hamilton, Deloitte, and Accenture.
- According to the Government Accountability Office, in the fiscal year 2023, government agencies spent $478.0 billion on services, with the DoD accounting for $230.0 billion and non-defense agencies accounting for the rest. The DoD spent $21.3 billion on support, professional, and engineering and technical services, while non-defense agencies spent $21.4 billion on professional services, which includes consulting, training, and support services.
- The Department of Veterans Affairs (VA) initially cancelled 875 contracts (amounting to around $2.0 billion) but has currently paused efforts. However, contract terminations across most agencies are expected to continue.
Global Business Process Outsourcing Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1Europe | 871,158 |
| #2United States | 287,000 |
| #3China | 120,370 |
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Geography Drilldown - US
Average Cost of Business Process Outsourcing Services
United States
2025 Market Pricing$25.00 to $X,XXX.XX
per employee per monthAverage Price
Prices in the Business Process Outsourcing Services market range from $25.00 to $X,XXX.XX, depending on Service Type & Complexity, Provider Location and Contract Length. For example, lower prices are associated with Administrative services, Managed IT ($100 to $350 per employee per month) and Call center agents ($25.00 to $100.00 per employee per month), whereas higher prices are associated with Highly technical services, HR services ($100 to $1,200 per employee per month) and Direct outsourcing ($500.00 to $3,500.00 per employee per month).
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Business Process Outsourcing Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Business Process Outsourcing Services market, prices in the US have grown 1.4% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
1.4%
Compound Annual Growth RateUnited States (2025-2028)
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Business Process Outsourcing Services
Total cost of ownership is Medium in the Business Process Outsourcing Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs.
Negotiated Before
Set Up Fees
Implementation
Billed During
Training
Support
Buyer Power in Procurement Negotiations
In 2025, buyer power amounts to -1.3 in the United States. Buyer power is most positively impacted by Recent Price Volatility. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
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- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Very Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Telecommunication Networking Equipment Manufacturers
- Computer Manufacturers
- Computer Peripheral Manufacturers
- Accounting Service Providers
- Law Firms
2nd
Tier Suppliers
Biggest Business Process Outsourcing Services Suppliers in the US by Revenue
The largest Business Process Outsourcing Services vendors by revenue in the US are HCL Technologies Limited, Infosys Limited and WNS (Holdings) Limited. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Tata Consultancy Services Ltd | Global | Mumbai, IN | >10,001 | < 5 | ||||
| HCL Technologies Limited | Global | Noida, IN | >10,001 | < 5 | ||||
| Accenture Plc | International | DUBLIN | >10,000 | < 5 | ||||
| International Business Machines Corporation | Global | ARMONK | >10,000 | < 5 | ||||
| Capgemini Se | Global | Paris, FR | >10,001 | < 5 | ||||
| Cognizant Technology Solutions Corporation | Global | TEANECK, NJ | >10,000 | < 5 | ||||
| Infosys Limited | Global | Bengaluru, IN | >10,001 | < 5 | ||||
| WNS (Holdings) Limited | Global | MUMBAI | >10,000 | < 5 | ||||
| Wipro Limited | Global | Bengaluru, IN | >10,001 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Business Process Outsourcing Services market is 10.7% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is stagnating, when considering movement between 2024 and 2025. To understand cost forecasts for 2026 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The average vendor risk in the BPO services market is low. Demand for market services is steadily growing, and buyers tend to establish long-term contracts with providers, translating into relatively strong profit on average and reducing the amount of operational and financial risk providers may face.
This market is highly competitive, with no single provider capturing an overly significant share of the market. This supports price-based competition and encourages providers to compete with each other on the basis of things other than price, such as investing in related solutions and services and improving existing capabilities to remain cutting-edge.
The market for business process outsourcing services displays low supply chain risk. Although first-tier and second-tier suppliers display moderate risk on average, market providers are not particularly reliant on any one upstream supplier and are fairly able to manage risk.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises.
Supplier Information
Concentrix Corporation
Concentrix Corporation is a private company operating in the professional, scientific and technical services sector. The company's offerings include business process outsourcing services. Founded in 2022, the company is currently headquartered in United States of America. Subscribe to learn more
Wipro Limited
Wipro Limited is a Global operator providing Business Process Outsourcing Services from their headquarters in Bengaluru, IN. This operator has a staff size of about >10,001 employees. According to ProcurementIQ estimates, Wipro Limited holds < 5% of market share... Subscribe to learn more
WNS (Holdings) Limited
WNS (Holdings) Limited is a public company operating globally in the finance and insurance, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include business process outsourcing services, legal process outsourcing... Subscribe to learn more
Infosys Limited
Infosys Limited is a public company operating globally in the information, finance and insurance, professional, scientific and technical services, administration, business support and waste management services and educational services sectors. The company's offerings include ai development services, robotic... Subscribe to learn more
Cognizant Technology Solutions Corporation
Cognizant Technology Solutions Corporation is a public company operating globally in the professional, scientific and technical services sector. The company's offerings include ai development services, business process outsourcing services, software testing services, cybersecurity consulting services, software... Subscribe to learn more
Capgemini Se
Capgemini Se is a public company operating globally in the professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include ai development services, industrial design services, business process outsourcing services,... Subscribe to learn more
International Business Machines Corporation
International Business Machines Corporation (IBM) is a global integrated computer technology, hardware, software, and services provider. It organizes its business into four segments: Software segment, which provides software solutions for a hybrid cloud platform, data and artificial intelligence, automation,... Subscribe to learn more
Accenture Plc
Accenture Plc is a public company operating internationally in the mining, information, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include mobile enterprise application platforms, claims management software,... Subscribe to learn more
HCL Technologies Limited
HCL Technologies Limited is a public company operating globally in the professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include ai development services, business process outsourcing services, it systems integration... Subscribe to learn more
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Procurement Management KPIs for the Business Process Outsourcing Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Response Time and Customer Complaints. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Support and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Response Time | Time of Query Time of Response | For outsourced customer service teams, average response time can be used to measure how responsive outsourced personnel respond to customer queries. Average response time can be used to measure how responsive vendors are to client queries. Response times can vary based on priority levels. | |
| Customer Complaints | Number of complaints by the buyer's customers regarding outsourced staff Number of complaints by the supplier's clients | Customer complaints can refer to clients' complaints regarding the supplier's service offerings or to complaints by the buyer's customers regarding the outsourced personnel. Customer complaints can demonstrate the level of professionalism and expertise of a vendor's staff. | |
Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Service Performance
What specific services will be included in the SLA?
What performance standards will be used to measure the provider's performance?
Price
What is the overall cost of the services?
What are the pricing and payment terms?
Legal Concerns
Who will own the intellectual property created during the project?
How will the provider ensure the confidentiality and protection of the buyer's intellectual property?
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Business Process Outsourcing Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should include a brief description of the organization, including its mission, vision, and goals.
Buyers should include an overview of the organization's structure, including key departments and decision-making processes.
Statement Of Need
Buyers should include a clear statement of the objectives and goals of the outsourcing project.
Buyers should include a detailed description of the specific business processes to be outsourced.
Project Budget
Buyers should include a detailed breakdown of the project budget, including costs for the BPO provider's services, any necessary equipment or software, and any other associated costs.
Buyers should include information about the organization's budget constraints and any specific budget requirements for the project.
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- Market share concentration
- Regulation and business requirements
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