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DEMAND: BUSINESS PROCESS OUTSOURCING
Industry-specific BPO is in growth mode as enterprises increasingly adopt business support functions underpinned by industry-specific platforms, analytics and automation.
The details:
- ACV for industry-specific BPO awards in the first half of 2022 is up 145% over 1H21.
- The number of awards in 1H22 is up nearly 40%.
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)
DATA WATCH
About the author
Stanton Jones
Stanton leads ISG's Index research, helping providers, investors and ISG clients make sense of the global IT services sector. Stanton’s weekly newsletter, the Index Insider, is read by thousands of market stakeholders each week. An ISG Digital Fellow, Stanton has been quoted in Fast Company, Forbes and CIO.com, and has appeared on national cable news.
