BPO

June 2018

Sectorwatch

The BPO market is growing at a rapid pace which is being fueled from the IT and telecommunication sector. The market is also gaining strength from the increased demands for outsourcing services in HR, banking and finance. BPO companies are also expected to steer towards higher value industries such as big data analytics, software & application development and healthcare information management. According to Market Research Future, the global BPO market is expected to grow at approximately $52B by 2023, at 11% of CAGR.

 

Industry Trends:

  • Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
  • Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
  • Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation