US Business Process Outsourcing Services Market Research Report: By Service Type (Finance and accounting outsourcing, Marketing & sales outsourcing, Customer support outsourcing, Training & development outsourcing, Human resource and recruitment outsourcing, Document management & processing, Others), By Operating Model (Traditional (on-premises), Business process-as-a-service (BPAAS) (cloud-based)), By Organization Size (SMEs, Large enterprises) and By Vertical (BFSI, IT & telecommunication, Retail & consumer goods, Manufacturing, Healthca

US Business Process Outsourcing Services Market Overview

As per MRFR analysis, the US Business Process Outsourcing Services Market Size was estimated at 76.76 (USD Billion) in 2023. The US Business Process Outsourcing Services Market Industry is expected to grow from 83.75(USD Billion) in 2024 to 219.4 (USD Billion) by 2035. The US Business Process Outsourcing Services Market CAGR (growth rate) is expected to be around 9.15% during the forecast period (2025 - 2035).

Key US Business Process Outsourcing Services Market Trends Highlighted

The US Business Process Outsourcing Services Market is experiencing notable growth driven by several key market drivers. One significant driver is the increasing demand for cost-efficient solutions. Companies in the US are increasingly recognizing the value of outsourcing non-core functions to focus on their core competencies, which has resulted in a shift towards outsourcing services for tasks such as customer support, human resources, and accounting. Additionally, advancements in technology have played a crucial role in this market, with automation and artificial intelligence improving service delivery and efficiency, enabling businesses to enhance their operational capabilities.Opportunities within the US market can be captured in the realm of remote work and digital transformation. The COVID-19 pandemic accelerated the adoption of digital strategies, leading to a surge in interest for outsourcing solutions that accommodate remote operations. 

Companies are exploring partnerships with BPO providers that offer flexible, scalable, and technology-driven services to adapt to the evolving business landscape. The rising inclination toward cloud-based services is also providing avenues for BPO providers to innovate and deliver seamless solutions. In recent times, a trend towards more specialized BPO services has emerged, focusing on industry-specific needs, such as healthcare, finance, and technology.US businesses seek outsourcing partners that understand their unique challenges and can provide tailored solutions. Moreover, there is an increasing awareness around compliance and data security, prompting firms to prioritize BPO vendors that adhere to stringent regulatory standards. This trend reflects a broader emphasis on trust and reliability in vendor relationships. Overall, the US Business Process Outsourcing Services Market is dynamic, driven by technology, specialization, and a focus on efficiency, presenting varied opportunities for companies to enhance their operations.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Business Process Outsourcing Services Market Drivers

Increasing Demand for Cost Efficiency

The United States Business Process Outsourcing Services Market Industry is significantly driven by the growing need for businesses to enhance cost efficiency. Organizations are increasingly outsourcing non-core functions to specialized service providers as a strategy to reduce operational costs by up to 30%. Many established companies, such as IBM and Accenture, have highlighted the importance of this strategy in their business models, showcasing how outsourcing enables reallocating resources to priority areas that foster innovation and growth.According to the United States Bureau of Labor Statistics, companies that implemented outsourcing reported an overall increase in operational efficiency, making them more competitive in the market. In the context of an evolving economic landscape, with U.S. firms constantly seeking to optimize their expenditure while maintaining service quality, the trend of outsourcing is projected to continue gaining momentum.

Technological Advancements in Automation

The advancement of technology, particularly in automation and artificial intelligence, is serving as a robust driver for the U.S. Business Process Outsourcing Services Market Industry. With vendors investing heavily in technologies such as Robotic Process Automation, companies are now able to automate repetitive tasks, significantly enhancing efficiency. A report from the Massachusetts Institute of Technology indicated a 50% enhancement in operational speed for companies utilizing automation tools, allowing them to manage greater volumes of transactions with reduced error rates.Established organizations like Cognizant have adopted these technologies to deliver superior results for clients, further propelling the growth of outsourcing services in the U.S. market as firms strive to stay competitive amid rapid technological changes.

Focus on Core Competencies

In the competitive landscape of the U.S. Business Process Outsourcing Services Market Industry, businesses are increasingly turning to outsourcing as a means to focus on their core competencies. By delegating non-core activities like customer service and technical support, organizations can channel their resources toward strategic initiatives. Research conducted by the National Association of Manufacturers noted that 65% of manufacturers consider focusing on core activities as a significant benefit of outsourcing.This shift is crucial in driving the market where companies leverage outsourcing to specialize in their main business areas while relying on experts for ancillary services. As organizations continue to recognize the importance of dedicating their focus, the demand for outsourcing services in the U.S. is likely to see significant growth.

US Business Process Outsourcing Services Market Segment Insights

Business Process Outsourcing Services Market Service Type Insights

The US Business Process Outsourcing Services Market is experiencing substantial growth across various service types, reflecting a dynamic shift in how organizations approach operational efficiency. This market is segmented into several key areas, each playing a vital role in enhancing overall productivity and cost-effectiveness. Finance and accounting outsourcing stands out as a crucial component, helping businesses streamline their financial operations and improve accuracy while allowing them to focus on core functions. Marketing and sales outsourcing is also gaining traction, enabling companies to leverage specialized expertise to boost their marketing strategies and drive revenue growth.Customer support outsourcing has become essential, with many firms opting for dedicated service providers to enhance customer experience and satisfaction, thus ensuring brand loyalty and retention. Training and development outsourcing represents a growing trend, as organizations increasingly seek to upskill their workforce through tailored training programs offered by specialized providers.

The human resource and recruitment outsourcing segment is significant, given the competitive labor market in the US, where companies benefit from targeted recruitment strategies and employee management.Document management and processing have seen considerable advancements, particularly with the shift towards digital solutions that enhance efficiency while reducing operational costs. This diversification within the service types allows businesses in the US to adapt and respond to ever-evolving market demands, creating numerous opportunities for growth. Each of these service categories is vital to the overall effectiveness of outsourcing strategies adopted by US companies, as they navigate challenges such as regulatory compliance, technological advancements, and the need for increased operational agility.The significant uptake of these services indicates a clear trend towards a more outsourced, specialized approach to business operations in the US, demonstrating their indispensability in achieving strategic corporate objectives. With the US Business Process Outsourcing Services Market exhibiting solid growth, these service types will continue to evolve, reflecting broader market trends and technological advancements that cater to the demands of modern businesses while fostering a landscape ripe with opportunities for further development and refinement.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Business Process Outsourcing Services Market Operating Model Insights

The US Business Process Outsourcing Services Market, particularly focusing on the Operating Model, has shown considerable evolution, showcasing diverse operational approaches. The segment is primarily characterized by Traditional (on-premises) models, which have become traditional backbones for many enterprises seeking control and security, and Business process-as-a-service (BPAAS), which leverages cloud-based solutions for scalability and flexibility. The Traditional model typically appeals to organizations with specific compliance requirements, enabling them to maintain direct oversight of operations, while BPAAS dominates in modern settings due to its ability to drive efficiency and lower operational costs.The transition towards cloud solutions reflects a significant trend wherein businesses are increasingly driven by the necessity for agility and rapid response to market demands, facilitating quicker deployment of services. As digital transformation accelerates, the BPAAS model offers substantial opportunities, enhancing service delivery speed and broadening access to advanced technologies. Ultimately, the dynamics between these operating models illustrate a noteworthy shift in how organizations in the US approach their outsourcing strategies, responding to changing business landscapes and operational needs..

Business Process Outsourcing Services Market Organization Size Insights

The US Business Process Outsourcing Services Market exhibits a diverse landscape influenced heavily by Organization Size, with a notable distinction between Small and Medium-sized Enterprises (SMEs) and Large Enterprises. SMEs are increasingly leveraging outsourcing to enhance operational efficiency and scalability, recognizing the benefits in cost reduction and focus on core competencies. This segment is vital as it allows smaller businesses to access high-quality services that were traditionally only available to larger firms. On the other hand, Large Enterprises dominate the market due to their extensive resource networks and the need for comprehensive outsourcing solutions.These organizations often require specialized services that cater to their complex operational needs, driving significant demand in the Business Process Outsourcing Services sector. The market is poised for substantial growth as digital transformation and technology adoption flourish across various industries. Additionally, evolving work paradigms and a growing emphasis on the integration of Artificial Intelligence and automation further bolster the business case for outsourcing across all organization sizes. This duality in the Organization Size segment not only highlights the versatility of the market but also signals a robust future trajectory for business process outsourcing in the US.

Business Process Outsourcing Services Market Vertical Insights

The US Business Process Outsourcing Services Market vertical segment encompasses diverse industries that leverage outsourcing to enhance efficiency and reduce operational costs. The Banking, Financial Services, and Insurance (BFSI) sector significantly emphasizes outsourcing for services such as customer support and compliance management, driving cost savings while maintaining regulatory standards. The IT and telecommunication segment adopts outsourcing to manage increasing data demands and expedite innovation, allowing companies to focus on core competencies.Retail and consumer goods are also keen on outsourcing logistics and customer service to improve customer satisfaction and streamline supply chains. In manufacturing, outsourcing non-core functions enables businesses to concentrate on production and quality control. Additionally, the healthcare and life sciences sectors utilize outsourcing for administrative tasks, aiding in regulatory compliance and patient management. The government and defense sector seeks outsourcing solutions to enhance operational efficiency and reduce expenses. Transportation and logistics benefit from outsourcing to improve service delivery and fleet management.The energy and power industry increasingly turns to outsourcing to manage non-technical services, thus allowing for focus on core competencies within a highly regulated environment. Each of these sectors demonstrates significant growth potential, driven by the ongoing digital transformation and the need for scalable solutions in a competitive landscape.

US Business Process Outsourcing Services Market Key Players and Competitive Insights

The US Business Process Outsourcing Services Market is characterized by a highly competitive landscape that encompasses various players offering a range of services designed to optimize business operations, reduce costs, and improve efficiency. Companies operating in this market are heavily focused on leveraging technology advancements, including artificial intelligence, automation, and cloud-based solutions, to differentiate their offerings. The increasing need for organizations to adapt to a dynamic economic environment has led to a surge in demand for outsourcing solutions across multiple sectors, such as healthcare, finance, and customer service. As such, businesses in this market continuously seek innovative ways to enhance service delivery and client engagement, which contributes to an evolving competitive environment.Capgemini stands out in the US Business Process Outsourcing Services Market with a robust portfolio of services that cater to diverse industry needs. 

The company's strengths lie in its ability to combine domain expertise with cutting-edge technology, providing customized solutions that drive operational efficiency. Capgemini is recognized for its strong emphasis on client collaboration and a client-centric approach, which solidifies its market presence and establishes long-term partnerships. The firm has invested significantly in developing its digital capabilities, notably in areas such as cloud services and customer experience management, enabling it to remain agile and responsive to the changing requirements of the US market. Capgemini’s scalability and innovation-centric model reinforce its reputation as a leading player in the outsourcing sector, positioning itself as a partner of choice for businesses seeking to thrive in a competitive landscape.Cognizant is another key player in the US Business Process Outsourcing Services Market, distinguished by its comprehensive suite of services that encompasses IT consulting, digital transformation, and business process management. The company takes pride in its ability to deliver innovative solutions tailored to specific client needs, leveraging a wealth of expertise in various industries, including healthcare, banking, and telecommunications. 

Cognizant has made strategic acquisitions to bolster its capabilities and expand its service offerings, allowing it to maintain a competitive edge in an ever-evolving market. Its strength lies in integrating advanced technologies, such as data analytics and robotic process automation, to enhance business processes and drive meaningful outcomes for clients. With a strong focus on customer satisfaction and measurable results, Cognizant continues to solidify its presence within the US outsourcing landscape, making it a formidable competitor.

Key Companies in the US Business Process Outsourcing Services Market Include

• Capgemini


• Cognizant


• Infosys


• Teleperformance


• HCL Technologies


• Wipro


• Sitel Group


• Concentrix


• DXC Technology


• IBM


• Alorica


• Genpact


• TCS


• Accenture

US Business Process Outsourcing Services Market Industry Developments

Recent developments in the US Business Process Outsourcing Services Market indicate a strong competitive landscape influenced by notable players such as Capgemini, Cognizant, and Infosys. As of October 2023, Capgemini has notably expanded its capabilities through the acquisition of a smaller technology consulting firm to enhance its service offerings in cloud and digital transformation. Cognizant has also experienced significant growth, reported to be driven by increased demand for IT services and automation solutions. In September 2023, Teleperformance announced the successful integration of a recent acquisition, further solidifying its position in the customer experience management space. HCL Technologies has been strategic in forming alliances, aiming to leverage artificial intelligence in its service delivery model. The US Business Process Outsourcing sector has seen an overall market valuation escalation due to the rising demand for outsourcing in the wake of digital transformation strategies adopted by organizations. Major players are also focusing on sustainable practices and workforce development in response to evolving market dynamics. In the past two years, Genpact and Wipro have both emphasized investments in cloud technologies, reflecting an industry-wide shift towards integrated and innovative solutions to meet customer expectations.

US Business Process Outsourcing Services Market Segmentation Insights

Business Process Outsourcing Services Market Service Type Outlook

• Finance and accounting outsourcing


• Marketing & sales outsourcing


• Customer support outsourcing


• Training & development outsourcing


• Human resource and recruitment outsourcing


• Document management & processing


• Others

Business Process Outsourcing Services Market Operating Model Outlook

• Traditional (on-premises)


• Business process-as-a-service (BPAAS) (cloud-based)

Business Process Outsourcing Services Market Organization Size Outlook

• SMEs


• Large enterprises

Business Process Outsourcing Services Market Vertical Outlook

• BFSI


• IT & telecommunication


• Retail & consumer goods


• Manufacturing


• Healthcare and life sciences


• Government and defense


• Transportation & logistics


• Energy & power


• Others

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	76.76(USD Billion)
MARKET SIZE 2024	83.75(USD Billion)
MARKET SIZE 2035	219.4(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	9.15% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Capgemini, Cognizant, Infosys, Teleperformance, HCL Technologies, Wipro, Sitel Group, Concentrix, DXC Technology, IBM, Alorica, Genpact, TCS, Accenture
SEGMENTS COVERED	Service Type, Operating Model, Organization Size, Vertical
KEY MARKET OPPORTUNITIES	Artificial Intelligence Integration, Cost Reduction Initiatives, Enhanced Customer Experience Solutions, Omnichannel Support Services, Industry-Specific Outsourcing Solutions
KEY MARKET DYNAMICS	Cost reduction strategies, Focus on core competencies, Technological advancements, Rising demand for automation, Enhanced customer experience
COUNTRIES COVERED	US