According to our latest study on "Customer Care BPO Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Solution and End User," the market is projected to grow from US$ 22,598.82 million in 2022 to US$ 34,570.73 million by 2028; it is estimated to record a CAGR of 7.5% from 2023 to 2028.

Huge Cost Benefits Conferred by Outsourcing Customer Care Services Fuel Customer Care BPO Market Growth

The BPO sector has flourished, with profit businesses, nonprofit organizations, and government bodies outsourcing a range of tasks to service providers. Customer care BPO solutions confer cost benefits to customers in the following ways.

• Wage difference cost: Offshore outsourcing helps reduce differences in the cost of wages. The Western world has high labor costs, whereas the same work can be performed at much lower costs—sometimes at costs lower than up to 60% or more—in other parts of the world.
• Training or recruiting cost: Outsourcing does not require staff training as it involves hiring third-party service providers who already have skilled workforces; this reduces training or recruiting costs.
• Infrastructure savings: Companies outsourcing their processes do not need to spend extra money on infrastructure or adding new equipment to their facilities. A BPO service provider or independent contractor has all the supplies and equipment needed to get the job done.

Thus, lower cost of operations is the biggest advantage associated with outsourcing. As outsourcing service providers are specialized in the services they offer, they can often accomplish the tasks at much lower costs than non-specialists. Hence, huge cost benefits conferred by outsourcing customer care services bolster the customer care BPOs market growth.

Furthermore, COVID-19 pandemic reshaped global customer care outsourcing owing to the need to cater to new customer demands and expectations and increased in call volumes. For instance, according to ResultsCX, increased use of online shopping led to a huge spike, 69%, in customer service call volumes during 2020. According to Go4customer, the use of video chat for customer service has surged by 70% since March 2020. According to Simply Contact, the number of calls continued to increase during the unprecedented times. Due to the pandemic, customers were reliant on contact centers to get them the help they needed. There was less in-person contact during the pandemic, which has increased the need to contact customer service virtually. All such factors indicate that COVID-19 pandemic positively impacted the customer care BPO market growth.

Key Findings of Study:

The customer care BPO market is segmented based on solution, end user, and geography. Based on solution, the customer care BPO market is categorized into nearshore outsourcing, onshore outsourcing, and offshore outsourcing. Based on end user, the customer care BPO market is segmented into IT and telecommunication, BFSI, retail and e-commerce, manufacturing, transport and logistics, healthcare and pharmaceutical, media and communication, automotive, and others. By geography, the customer care BPO market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Based on solution, the customer care BPO market is categorized into nearshore outsourcing, onshore outsourcing, and offshore outsourcing. In 2022, the nearshore outsourcing segment dominated the customer care BPO market. Nearshore customer care BPO firms provide services to neighboring countries, along with their own country. A few advantages of nearshore outsourcing are stronger infrastructure, better cultural understanding, and proximity. As nearshore customer care service centers are located near the base of businesses, they offer better control over the services due to the same or the nearly same time zone shared by the organization and the service provider. Furthermore, geographic proximity enhances cultural understanding between customers and service providers. Nearshore outsourcing centers are generally located in modern cities and areas with a robust infrastructure. All these factors are contributing to the growth of the nearshore outsourcing segment in the customer care BPO market.

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