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Market size & outsourcing shift: BPO growth continues but shifting in character

January 16, 2026

Market size & outsourcing shift: BPO growth continues but shifting in character

The business process outsourcing (BPO) industry continues to expand at a remarkable pace, but what’s driving that expansion is starting to look very different. Industry research indicates the global BPO market size could reach $821.5 billion by 2035 , with the BPO industry growth rate projected at around 9.6% annually.

Once defined largely by cost savings and offshore labour, the sector is now moving toward a broader, digital-first model supported by automation, analytics, and AI-driven workflows.

Growth remains strong as the industry evolves

BPO growth remains strong, but the nature of that growth is shifting. Outsourcing has moved beyond back-office support and cost reduction, moving toward work that relies on stronger technical capability and closer integration with a company’s core operations.

As automation, cloud platforms, and AI become central to service delivery, providers are being asked to manage more complex processes. Robotic process automation (RPA) and AI-enabled workflows now support everything from routine data tasks to higher-value operational work, pushing providers into roles that are more closely integrated with core business operations.

Across industries, organisations are turning to BPO to innovate, scale faster, and strengthen customer experience. These shifts are helping drive BPO industry growth, with demand increasingly shaped by access to digital capability and specialised skills rather than labour savings alone.

Regional movements across the globe

Asia-Pacific remains the largest delivery base, with India, the Philippines, and Malaysia continuing to lead on scale and workforce capability. At the same time, near-shore markets such as Eastern Europe and Latin America are gaining ground through multilingual talent, overlapping time zones, and specialised expertise.

These shifts are widening the delivery map, giving companies more options to balance cost, capability, and operational stability.

Competition is also intensifying. This trend is evident among major firms such as Accenture, Infosys, and Teleperformance, which are investing heavily in AI, cloud technology, and data-driven support. At the same time, emerging providers focus on sector-specific expertise and SME-ready solutions.

Where the market is heading next

The continued rise of BPO growth reflects a sector shifting towards higher-value work and stronger digital maturity. Automation is reshaping delivery, but the real advantage comes from providers that combine technology with reliable talent, sound governance, and steady operational support.

Companies evaluating their global hiring strategies are paying closer attention to these factors. Cost efficiency remains important, but resilience, compliance, and overall support quality now carry greater weight in vendor selection.

From Teamified ’s perspective, this part of the market focuses on value, skilled talent, and a delivery model designed for modern, digitally enabled operations. As outsourcing continues to evolve, partnerships built around capability and care will help shape how businesses scale and compete.

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