A ResearchAndMarkets.com report projects the Asia-Pacific business process outsourcing (BPO) market to grow from $77.88 billion in 2024 to $178.74 billion by 2033. The sector is expected to expand at a 9.67% compound annual growth rate from 2025 to 2033, powered by automation, artificial intelligence (AI), and large-scale digital transformation initiatives.
Digital acceleration redefines BPO models
Outsourcing across customer service, IT, finance, and back-office operations continues to accelerate as global businesses prioritize scalability and efficiency. The report highlights that AI, robotic process automation, and cloud computing are reshaping delivery models, enabling faster and more cost-efficient operations.
In June, U.S. energy provider Just Energy partnered with HCLTech to modernize its operations, reflecting the region’s shift from cost-based outsourcing to value-driven transformation. Companies are now leveraging automation and cloud solutions to enhance accuracy, reduce costs, and improve the customer experience across multiple industries.
Regional powerhouses and emerging hubs
India, the Philippines, and China remain the anchors of the region’s outsourcing strength, supported by large talent pools, English proficiency, and mature IT ecosystems.
India leads with government-backed initiatives, such as Digital India and aggressive skill development programs. The Philippines remains a magnet for investors. The country is renowned for its service-oriented culture, high level of English fluency, and multilingual workforce. China is building a robust domestic outsourcing sector supported by compliance reforms and digital innovation.
Emerging hubs, including Vietnam, Malaysia, and Indonesia, are gaining traction due to their nearshore capabilities, improved infrastructure, and government incentives such as tax benefits and investments in technology parks.
Challenges: Compliance, attrition, and AI integration
As outsourcing deepens in regulated sectors such as finance and healthcare, data security and regulatory compliance continue to be key risks. High attrition rates, particularly in India and the Philippines, strain continuity and raise costs.
To counter this, providers increasingly adopt AI workforce tools and automation. EY India’s Preeti Anand projects 50% of call types will be automated, with another 20% to 30% handled by AI-assisted agents, marking an evolution of human contact centers.
Tech Mahindra’s Birendra Sen states that AI now manages up to 60% of agent workloads. Meanwhile, WNS CEO Keshav Murugesh emphasizes that human judgment remains vital, creating a “phygital” workforce that blends people and AI.
Sector outlook: AI-driven efficiency and expansion
Key growth segments include finance and accounting, knowledge process outsourcing (KPO), and procurement BPO, all of which leverage AI to drive analytics, compliance, and automation. The banking, financial services, and insurance (BFSI) and healthcare sectors are expanding fastest, driven by digital banking, telehealth, and data-intensive services.
With AI and automation reshaping operations, the Asia-Pacific region remains the world’s outsourcing hub where competitive costs meet digital sophistication. The report concludes that by 2033, the Asia-Pacific region will anchor the next decade of global BPO growth, with a projected market of $178.7 billion.
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BoardRoom. (2025, September 2). Top Business Process Outsourcing Trends Globally in 2025. Retrieved November 3, 2025, from https://www.boardroomlimited.com/2025/09/02/business-process-outsourcing-trends/
Communications Today. (2025, May 14). AI and agentic systems are rewiring India’s $54B BPO sector. Retrieved November 3, 2025, from https://www.communicationstoday.co.in/ai-and-agentic-systems-are-rewiring-indias-54b-bpo-sector/
