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Business Process Outsourcing Complete Guide - 2024 Trends

Discover the latest and easily understood 2024 Business Process Outsourcing trends and streamline your operations effectively.


The Business Process Outsourcing (BPO) industry in 2024 is undergoing big changes. The global BPO market reached almost $246 billion (about $760 per person in the US) in 2021, with an annual growth rate of 9.1% from 2022 to 2030. The establishment of BPO is driven by technological advancements, evolving market dynamics, and the growing demand for efficiency, innovation, and value. Knowing this, Businesses are ready to choose BPOs to simplify their operations in a budget-friendly way.

Let's understand the 2024 BPO trends and explore the business functions to outsource, and different outsourcing types to have a better grasp on onboarding the right people and knowing the latest trends in the industry.

Origin of BPO

Everything has a beginning, where it all once started. The root of the BPO industry is to understand the progress it has made and will continue to do so. Let’s delve into its journey.

The Root Of BPO

The beginning of the Business process outsourcing industry in the 1970s and 1980s. The companies were brainstorming different ways they could cut down on the costs of their operations by outsourcing the production of their services to other countries that have cheap labor. Initially, BPOs were a simple solution for businesses that were not entirely self-sufficient or were seeking cost-cutting measures. What these companies did was they went ahead and outsourced non-core functions and strategies to other companies that would execute those tasks rather cost-effectively. But the major boost it got was after World War II, outsourcing gained more recognition and in 1967, it was formally proposed as a business strategy by Morton H. Meyerson of The Electronic Data Systems Corporation.

Picking Up the Pace

In the late 1980s, Things began to move a bit fast, and that was when BPO service providers made a significant impact when Eastman Kodak decided to outsource its IT systems. This moves his legitimized outsourcing as a credible business strategy for technological service needs. As years went by and transport and telecommunications became more affordable and convenient, outsourcing went global. BPOs diversified their offerings, managing everything from accounting to data processing to human resources.

The 1990s marked economic liberalization in a few Asian countries (including India, China, and the Philippines), leading to a drastically large, low-cost skill pool. Development advanced countries saw this as an opportunity and hopped on it, turning to Asia to fulfill their needs and ultimately boost the BPO industry.

The revolution of the Internet

With the advent of the internet, BPOs further expanded their services manifold. The Internet opened its horizons, allowing it to diversify its offerings and manage various back-office operations. According to research, the estimates indicate that the share of value-added from outsourcing tripled from 20% in 1946 to 60% in 19961.

Current conditions of BPO

Over the last decade, BPOs have progressed rapidly across previously untapped industries such as banking, finance, insurance, healthcare, and retail. The BPO market is projected to grow at a staggering 8.3% and be worth $344 billion by 2026. To have a better understanding of the current situation of BPO, we’ll be discussing the key trends that are happening this year.

Key Trend of Business Process Outsourcing In 2024

1. Automation and AI Integration

The technological advancement of artificial intelligence (AI) all these advancements have changed the BPO industry. The purpose of these revolutionary technologies is to provide automation of repetitive tasks, processing data, and quick decision-making, resulting in improved efficiency, reduced errors, and faster turnaround times.

However, the integration of AI in BPO operations does go beyond automation. AI-powered analytics tools provide much more like; valuable insights from data, helping businesses make data-driven decisions, predict trends, personalize customer experiences, and optimize operational performance. Natural language processing (NLP) and sentiment analysis just further polish customer interactions and satisfaction.

2. Data Security and Compliance

Data breaches and cyber threats are becoming more common day by day. It is great that technology is advancing but then again pros always come with some cons. Therefore, safeguarding data has become a top priority for BPO providers. Introducing and maintaining credible cybersecurity measures, including encryption, multi-factor authentication, and on-the-clock monitoring, are to be implemented to protect sensitive data and comply with regulatory requirements.

The external providers must show compliance with industry-specific regulations and standards, a crucial step to consider in BPO operations. Providers invest in regular audits, training programs, and technology upgrades to maintain compliance, build trust with clients, and minimize risks associated with data breaches and non-compliance.

3. Outcome-Based Models

There has been a Shift Towards Outcome-Based Contracts. Traditional input-based contracts are moving towards outcome-based models in BPO partnerships. Clients have understood the importance of quality and are looking for measurable results and value-driven outcomes such as cost savings, revenue growth, customer satisfaction scores, and operational excellence. Outcome-based models incentivize providers to focus on delivering tangible business results and continuous improvement.

Outcome-based contracts grow collaborative partnerships between clients and BPO service providers. It encourages shared goals, transparent performance metrics, and continuous change. This shift towards value-based partnerships strengthens client-provider relationships and drives mutual success.

4. Hybrid BPO Solutions

Instead of worrying about choosing a specific model of outsourcing, hybrid BPO solutions offer the combination of the strengths of all onshore, nearshore, and offshore outsourcing models. Companies strategically use the geographic advantages of each model based on factors such as cost-effectiveness, talent availability, language proficiency, time zone compatibility, and regulatory considerations.

This option works best as hybrid models offer flexibility and scalability, allowing businesses to scale operations up or down based on demand, tap into diverse talent pools globally, and optimize cost structures without compromising service quality. This kind of flexibility is beneficial in evolving market environments and during seasonal fluctuations in workload.

5. Green practice and social responsibility

Climate change is occurring at a progressive rate and it's affecting the planet significantly. The buyers are now going for companies that are aligned with the cause of a better & healthier planet and show some sustainable practices. Therefore, sustainability is gaining prominence in BPO operations. External providers are adopting eco-friendly practices such as energy-efficient technologies, paperless processes, waste reduction initiatives, and sustainable sourcing of materials. Taking on green initiatives not only reduces environmental impact but also improves operational efficiency and cost savings.

BPO companies are increasingly focusing on social responsibility initiatives. This includes community engagement programs, diversity and inclusion efforts, ethical sourcing practices, and employee volunteerism. Considering all these factors and incorporation Socially responsible practices help build brand reputation, attract top talent, and contribute positively to the communities they operate in.

6. AR and VR Applications

There is a new and interactive way to involve customers now through Augmented Reality (AR) and Virtual Reality (VR). These technologies are reshaping the way customer engagement in BPO takes place. Companies are strategizing the use of AR/VR for virtual training simulations, immersive customer support experiences, interactive complete product representation, and virtual showroom experiences. Ultimately resulting in customer satisfaction, reduced training costs, and high sales conversions.

These AR/VR technologies are also improving employee training and collaboration. Virtual training modules simulate real-world scenarios, enhance learning retention, and provide hands-on experience without physical constraints. Virtual collaboration platforms enable global teams to collaborate effectively, share knowledge, and work seamlessly across geographies.

7. Employee Well-being and Upskilling

As the awareness of Mental health in everyday life grew it also had taken an important place in the workplace as well, due to which employee well-being has become a priority in the modern BPO workplace. Pro mental health companies offer wellness programs, mental health support, flexible work arrangements, and ergonomic workspaces to promote a healthy work-life balance. When companies think for the well-being of employees it makes them Happier, more productive, creative, and committed to delivering high-quality services.

Moreover, companies should understand that Upskilling and reskilling programs are essential to keep pace with technological advancements and changing job roles in BPO. As a progressive Company, it is beneficial to invest in training initiatives for digital skills, soft skills, leadership development, and domain-specific knowledge. Continuous learning helps in growing the career of employees which creates an overall organizational agility.

8. Blockchain Integration

Blockchain technology is transforming operations by changing the way transactions happen, making them secure, transparent, and trustworthy. Blockchain brings forth immutable records, secure authentication, smart contracts, and decentralized data storage, lowering fraud risks and maintaining data integrity in financial transactions, and document verification. These smart contracts are powered by blockchain, and automate contract execution, payments, and compliance verification, helping to minimize manual errors, delays, and disputes. Blockchain-based supply chain offers credible solutions enhancing traceability, and efficiency, benefiting businesses across industries and improving customer trust.

9. Customer-Centric Digital Transformation

The business world is completely focused on personalized customer experience, that is every customer witnesses a unique customer experience. The digital transformation is witnessing a shift towards customer-centricity in BPO. Companies are using data analytics, AI chatbots, and multiple communications to provide customized customer experiences. This personalized approach helps to make predictive recommendations while providing smooth interaction across touchpoints.

AI algorithms make the job easier by analyzing large chunks of customer data, preferences, and behavior patterns to generate workable insights. These insights tell you specific about targeted marketing campaigns, product recommendations, customer segmentation, and loyalty programs. Companies utilizing this strategy will help with their customer retention, satisfaction, and lifetime value.

10. Collaboration and Ecosystem Partnerships

BPO providers collaborate with technology vendors, industry experts, startups, and academia to co-create modern solutions, share best practices, and enhance industry standards. Choosing a Strategic partnership helps to access specialized expertise, emerging technologies, and new market opportunities, creating a collaborative ecosystem for mutual growth. This makes room for both parties' business success. Ecosystem partnerships facilitate an efficient integration of services, platforms, and technologies across value chains.


This comprehensive guide provides a detailed analysis of the key trends of 2024 that are shaping the Business Process Outsourcing industry. From automation and AI to strategic partnerships, many companies have hopped on these trends, Infosys, an IT company that provides a wide range of BPO services, has been at the forefront of integrating advanced automation solutions into its service packages. Incorporating these trends they have freed up human talent and are gradually aligning towards hyper-automation. This allows the company to stay competitive, innovate, and meet the demands of clients much better than its competitors