Customer Experience Business Process Outsourcing Market Size, Share & Trends Analysis Report By Service Type (Inbound, Outbound), By Outsourcing Type, By Support Channel, By End-use, By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global customer experience business process outsourcing market size was estimated at USD 92.49 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 11.9% from 2024 to 2030.The market is experiencing significant growth owing to the considerable developments in the field of cloud computing services in recent years.

Cost-effective cloud based CX BPO services have witnessed a notable increase in adoption worldwide. With the usage of cloud-based CX BPO services, businesses can eliminate substantial expenditures on hardware, software, and infrastructure that are required in on-premises solutions. Moreover, CX BPO services providers ensure reliable, on-demand, and flexible supply and management of these resources, which enable companies to save on operating costs, spend less on capital projects, and improve financial flexibility. Thus, aforementioned factors collectively drive the growth of the market.

The growing popularity of automated customer services among businesses seeking newer ways of reducing human intervention and operational costs, while improving customer experience, is expected to drive the demand for AI-integrated market. Technologies such as AI, machine learning, and cloud computing are being rapidly used by businesses to improve customer experience and offer customized solutions to their consumers' problems. For instance, AI-based chatbots interfaced with social media platforms can help customers address their queries on their own. Thus, the need for automated customer experience BPO services is expected to drive market growth across the globe.

Technological advancements are rapidly transforming customer service interactions. Businesses are gaining significant benefits from real-time self-service and AI-assisted customer service. Evolving customer preferences and expectations, such as the growing preference for live web chat and mobile texting to engage with businesses, are also fueling the desire to automate customer support procedures. For instance, in December 2023, ibex Limited, customer lifecycle experience (CLX) solutions provider, partnered with AI-based messaging platform Sapling.ai to integrate Sapling.ai’s AI-powered messaging assistant technology into the Wave X platform. Sapling.ai’s model-powered solutions offer autocomplete suggestions driven by deep learning technology that assists sales teams in drafting personalized and effective responses to customer queries. Therefore, such strategic initiatives are expected to drive the market demand over the forecast period.

Various financial institutions are partnering with BPO service providers to ease customer management and improve cost efficiency across various regions. Business process outsourcing is a key part of the BFSI business model, catering to various aspects of the financial sector, such as customer service, asset management, investment management, and phone banking. According to new research by 10x Banking Technology Limited, a cloud-banking platform company, global banks have been losing nearly 20% of their customers in recent years due to poor customer experience. The research shows that banks' lack of control over customer data and desire to adopt in-house customer experience services is a key reason for customer attrition. Therefore, financial institutions are expected to adopt customer experience business process outsourcing services in the forecasted period.

Market Concentration & Characteristics

The growth of the market is medium, and the pace of growth is accelerating. BPO firms can offer artificial intelligence-based services to their clients to automate various CX management processes such as customer feedback collection & analysis, order processing & monitoring, and social media monitoring. A BPO provider can assist end-users in planning effective marketing and business strategies using data analytics, thus helping them enhance their relations with their customers.

The market is also witnessing a high level of merger and acquisition (M&A) activity by key players. Furthermore, market players are heavily investing in R&D to develop innovative CX BPO services to attract targeted audiences and increase their revenue streams.

Various international and local regulatory bodies have drafted regulations to protect consumer data from unauthorized users and prevent any potential misuse of it. Market players must abide by various regulations and acts, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), related to personal data protection.

There are no direct substitutes for customer experience business process outsourcing services. Certain firms offer a part of the service or customized services, which could emerge as a threat to end-to-end solution providers. However, the true potential of CX BPO is realized only by employing the services of core service providers who could integrate systems for optimum performance. Lack of substitute would thus factor for enhanced growth.

CX BPO services enable end-use businesses to focus on their core competencies, minimize operational expenses, and enhance their brand loyalty to customers. Furthermore, growing functional complexities due to rapid technological advancements are forcing companies to opt for CX BPO services to meet evolving market needs.

Service Type Insights

The outbound service segment led the market with a revenue share of more than 56.0% in 2023. Outbound CX services allow companies to analyze new markets, locations, and client segments so that companies can identify and connect with potential customers through focused outreach programs, introduce goods and services to new demographics, and create a presence in competitive regions. Proactive strategic growth promotes business expansion, expands customer portfolios, and reduces risks associated with market saturation and reliance on specific customer categories. Thus, driving the market growth of the outbound segment in the market.

The inbound service segment is anticipated to witness a significant CAGR from 2024 to 2030 in the market. The incorporation of new technologies such as artificial intelligence (AI), chatbots, and data analytics has transformed inbound service capabilities. These technological advancements enable more effective call routing, predictive issue resolution, and real-time consumer information, thereby improving the overall quality of customer interactions. Thus, driving the market growth of the inbound services in the market.

Outsourcing Type Insights

The offshore outsourcing type segment held the largest market revenue share in 2023. The expansion of Multinational Corporations (MNCs) into new regions, market liberalization, and globalization contribute to the growth of the offshore CX BPO segment. Businesses can navigate cultural, regulatory, and market complexity; reduce risks; and take advantage of new growth and development opportunities in established and developing countries with the help of offshore CX BPO providers, who provide access to global markets, local experience, and on-the-ground support. Access to a varied and competent workforce with experience in various fields, including sales, back-office operations, technical support, and customer service, is driving the growth of the market.

The nearshore outsourcing type segment is anticipated to register the fastest CAGR during the forecast period. The time zone alignment and geographic closeness between client and service provider locations are the main factors propelling the growth of the nearshore CX BPO segment. Nearshore outsourcing locations, such as Latin America for North American companies or Eastern Europe for Western European companies, provide time zone compliance. This allows for real-time communication, collaborative work, and response. Access to a sizable pool of educated, talented, and multilingual individuals with industry-specific knowledge, technological proficiency, and customer-focused abilities is what drives the growth of the nearshore CX BPO segment.

Support Channel Insights

The voice support channel segment held the largest market revenue share in 2023. The voice segment focuses on addressing complex questions and providing technical help, and specialized services that require real-time interaction and professional intervention. Voice over Internet Protocol (VoIP), Natural Language Processing (NLP), Interactive Voice Response (IVR) systems, and AI-driven analytics are being used by CX BPO providers to improve voice service capabilities, optimize call routing, and customize client interactions. Thus, driving the growth of the segment in the market.

Non-voice outsourcing type is expected to register the fastest CAGR during the forecast period. The emergence of digital technologies, coupled with the expansion of online channels and platforms, is the primary factor driving the adoption of the non-voice segment in the CX BPO market. AI and machine learning (ML) technologies are transforming the non-voice group, enabling enterprises to automate interactions, customize engagements, and derive actionable insights from significant amounts of data. Thus, driving the growth of the segment in the market.

End-use Insights

IT & Telecommunications end-use segment held the largest market revenue share in 2023. Various IT & telecommunications companies are shifting to subscription-based customer service models. Customer experience BPO services aid in the management of the complexities of client satisfaction recognition, customer support, and technical helpdesk. Moreover, IT & telecommunications firms undergo dynamic company operations because of external factors such as rapid technological breakthroughs and shifting market demands. IT & telecommunications firms are at the forefront of adopting innovative technologies. Customer experience BPO providers incorporate technology solutions such as machine learning, artificial intelligence, robotic process automation, data analytics, and cloud-based platforms into financial operations. Thus, driving the growth of the IT & telecommunications segment in the market.

The e-commerce end-use segment is projected to witness the fastest CAGR over the forecast period. In the competitive e-commerce industry, CX BPO providers are leveraging their experience in digital technologies, customer interaction platforms, and data analytics to assist online retailers in optimizing omnichannel operations, increasing customer satisfaction, and driving revenue development. ML algorithms are improving predictive analytics and dynamic pricing strategies, allowing online retailers and CX BPO providers to optimize marketing campaigns and handle inventory and customer engagement activities based on data-driven insights and real-time expertise. Thus, driving the growth of the e-commerce segment in the market.

Regional Insights

North America region dominated the market in 2023 with the largest revenue share. The North American CX BPO industry is highly competitive, with multiple firms battling for market share. This competitive environment has resulted in reorganization, with larger providers purchasing smaller enterprises to enhance their range of services, geographic presence, and customer base. North American CX BPO providers are investing in omnichannel solutions, which allow businesses to communicate with customers consistently across several platforms, including internet, mobile, and traditional channels. Thus, driving the growth of the region in the customer experience business process outsourcing industry.

Asia Pacific region is anticipated to witness significant growth in the market. The Asia Pacific CX BPO market continues to expand swiftly, owing to the region's expanding middle class, digitally advanced consumers, and expanding business ecosystem. The Asia Pacific region is characterized by diversity in culture, language difficulties, and a wide range of consumer preferences. CX BPO suppliers aim to navigate these different landscapes while maintaining cultural awareness, language accuracy, and customized customer experiences. Thus, the increasing adoption of the customer experience business process outsourcing in the Asia pacific region is expected to drive the overall growth of the market.

Key Customer Experience Business Process Outsourcing Company Insights

Some of the key players operating in the market include Concentrix Corporation; Teleperformance; Startek; TTEC; and TELUS International.

• Concentrix Corporation offers solutions to help clients enhance their Customer Experience (CX) and business performance. Concentrix Corporation's service offerings comprise CX strategy, data & analysis, experience design, digital engineering, experience platforms, automation & operations, enterprise modernization, CX management, and content trust and safety, among others.

• Teleperformance offers Customer Experience Technology and other related services. Teleperformance’s service offerings comprise Digital CX and AI; CX Management; Consulting, Analytics, and Technology; and Specialized Services. The group operates its business through two segments, namely Core Services & Digital Integrated Business Services (D.I.B.S) and Specialized Services. The Core Services & D.I.B.S business segment offers services such as technical support, customer care, and knowledge process services in Artificial Intelligence (AI) and analytical solutions.

iQor; ResultsCX; Firstsource; and ibex Limited are some of the emerging market participants in the market.

• iQor is a managed service, customer engagement, and technologically enabled solutions provider. The company’s capabilities comprise a digital transformation segment, which comprises private CX cloud, generative AI, intelligent automation, intelligent analytics, and business intelligence, among others. The other segment, CX optimization includes leadership training, seasonal staffing, workforce management, and data security, among others.

• ResultsCX is a customer experience management services provider. The company’s service offerings comprise Digital CX, which includes Omnichannel CX; AI Operations & Bots; Social Experience Management; SupportPredict Self Learning Knowledgebase; SupportPredict Agent AI; SupportPredict and Self Service & Bots. Furthermore, Resolution-Centered CX includes customer acquisition, billing & collections, customer care & retention, account management, technical support, and back-office processing, among others.

Recent Developments

• In November 2023, Alorica, Inc., customer experience solutions provider, and Genesys an AI powered orchestration platform provider, partnered to improve customer loyalty and company performance using AI-driven solutions. Alorica, Inc. would leverage Genesys Cloud CX for its AI and digital capabilities, as well as its dependability and flexibility to bolster Alorica IQ, the company's digital platform. Coupled with Alorica, Inc.'s expertise in managed services, workforce scalability, curriculum products and services, and analytics, the partnership with Genesys would enable the development of solutions that efficiently address and handle customer concerns.

• In March 2023, Concentrix Corporation, customer engagement and business performance services provider, announced its decision to enter into a binding put agreement with Webhelp in a transaction valued at USD 4.8 billion (including net debt). Webhelp is known for its expertise in customer experience, sales, and marketing across Latin America, Europe, and Africa. This agreement is anticipated to build the combined companies to accelerate growth and improve customer experiences for leading global brands by leveraging innovative technological solutions.

• In January 2023, TTEC Holdings, Inc.,customer experience services provider, announced a strategic partnership with Google Cloud aimed at helping customers use Google's AI-powered contact center-as-a-service capabilities to streamline real-time interactions with customers across all live channels.

Customer Experience Business Process Outsourcing Market Report Scope

Global Customer Experience BPO Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global customer experience business process outsourcing market report based on service type, outsourcing type, support channel end-use, and region:

• Service Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Inbound

  • Outbound

• Outsourcing Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Onshore

  • Offshore

  • Nearshore

• Support Channel Outlook (Revenue, USD Billion, 2018 - 2030)

  • Voice

  • Non-voice

    • Chats

    • Email

    • Others

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Automotive

  • BFSI

  • Healthcare

  • Manufacturing

  • Media & Entertainment

  • IT & Telecommunications

  • Education

  • Retail

  • Travel & Hospitality

  • E-commerce

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • UAE

    • South Africa