BPO

May 2018

Sectorwatch

Growth and expansion in the global BPO industry are constantly being driven by innovation, new technologies and global competition. As such, BPO service providers are expected to use new technology to adequately address challenges in the markets, enhance product and services and manage talent shortages. Emerging technologies such as cloud computing, social media, software and automation are being used by BPOs to reduce costs and accelerate growth, which will continue throughout 2018.

 

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