Business Process Outsourcing in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: May 2024
ANZSIC OD5515Revenue
$44.5bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
303k
Businesses
36,428
Wages
$XX.Xbn
Business Process Outsourcing in Australia industry analysis
The Business Process Outsourcing (BPO) industry provides a variety of back and front office functions to businesses, including call centre operations, IT services, debt collection and recruitment services. Although many companies undertake these tasks in-house, BPO firms can typically perform these processes more efficiently and at a lower cost because of their greater expertise and economies of scale. Outsourcing also allows companies to focus on performing higher-value activities. For this reason, downstream businesses have increasingly demanded the industry's services, underpinning industry revenue and profit growth. Overall, Industry-wide revenue has been growing over the past five years at an expected annualised 0.3% and is set to total $44.5 billion in 2023-24, when revenue will jump by an anticipated 1.2%.
Trends and Insights
- Global competition threatens to undercut growth. BPO firms have endured tough competition from low-cost international companies that provide similar services.
- The major clients for BPO services differ depending on the products outsourced and the client’s scale. The industry’s varied services mean that markets are highly fragmented.
- There are a high number of government agency headquarters in the Australian Capital Territory. These agencies support the need for business process outsourcing services in the state.
- Business process outsourcing firms compete with one another and international alternatives. This opposition has spurred price competition within the industry.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.3 % over the past five years, to reach an estimated $44.5bn in 2024.
Trends and Insights
Downstream businesses are becoming increasingly comfortable outsourcing business processes
- Businesses have increasingly been outsourcing certain non-core processes to BPO firms as a strategic move to cut overhead costs, allowing them to focus more on their core operations.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Growing business confidence and IT and telecommunications adoption will lift demand for the industry
- The rising adoption of IT and telecommunications in downstream businesses is expected to drive the need for more specialised services, creating opportunities for computer system and design service providers over the coming years.
Biggest companies in the Business Process Outsourcing in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Hays Specialist Recruitment (Australia) | 2,759.7 | |
IBM A/NZ Holdings | 759.8 | |
WPP AUNZ | 655.0 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Customer relationship management services, Finance and administration services and Human resources and recruitment services. Customer relationship management services is the largest segment of the Business Process Outsourcing in Australia.
Trends and Insights
A tumbling unemployment rate has lifted demand for the industry's human resources and recruitment services
- The human resources and recruitment services segment includes firms operating in the Employment Placement and Recruitment Services industry.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Management Consulting in Australia
- IT Security Consulting in Australia
Complementors
- Document Preparation Services in Australia
- Call Centre Operation in Australia
- Employment Placement and Recruitment Services in Australia
International industries
- Business Process Outsourcing Services in the US
- Business Process Outsourcing Services in the UK
Table of Contents
About this industry
Industry definition
The industry provides a range of third-party outsourcing services on a contract basis. Clients outsource specific operations and business functions, including both back office and front office tasks. Industry players operate, administer and manage these functions based on defined and measurable performance metrics.
What's included in this industry?
Human resources and recruitment servicesComputer software design and consultancy servicesAdvertising and marketing servicesFinance and administration servicesDebt collection servicesCustomer relationship management servicesCompanies
Hays Specialist Recruitment (Australia)IBM A/NZ HoldingsWPP AUNZPurchase this report to view all 4 major companies in this industry.
Related Terms
BUSINESS PROCESS OUTSOURCING (BPO)CLOUDFRONT OFFICEBACK OFFICECYBERCRIMEIndustry Code
ANZSIC 7211 - Business Process Outsourcing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Global competition threatens to undercut growth. BPO firms have endured tough competition from low-cost international companies that provide similar services.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The major clients for BPO services differ depending on the products outsourced and the client’s scale. The industry’s varied services mean that markets are highly fragmented.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
There are a high number of government agency headquarters in the Australian Capital Territory. These agencies support the need for business process outsourcing services in th...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Business process outsourcing firms compete with one another and international alternatives. This opposition has spurred price competition within the industry.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Only one company holds more than 5.0% of the industry’s market share. Hays Specialist Recruitment specialises in recruitment services and dominates the human resources and re...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Hays Specialist Recruitment (Australia)'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of IBM A/NZ Holdings's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of WPP AUNZ's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Hays Specialist Recruitment (Australia), and factors influencing its performance in the industry
- Description and key data for IBM A/NZ Holdings, and factors influencing its performance in the industry
- Description and key data for WPP AUNZ, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Growing business numbers mean the pool of potential clients is expanding. Over the past few years, a climbing number of businesses supports the need for business process outs...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins have trended upwards in recent years as falling purchase costs and investment in technology supported profitability. Even so, mounting price-based competition ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Business Process Outsourcing industry in Australia in 2024?
The market size of the Business Process Outsourcing industry in Australia is $44.5bn in 2024.
How many businesses are there in the Business Process Outsourcing in Australia industry in 2024?
There are 36,428 businesses in the Business Process Outsourcing industry in Australia, which has grown at a CAGR of 3.2 % between 2019 and 2024.
Has the Business Process Outsourcing industry in Australia grown or declined over the past 5 years?
The market size of the Business Process Outsourcing industry in Australia has been growing at a CAGR of 0.3 % between 2019 and 2024.
What is the forecast growth of the Business Process Outsourcing industry in Australia over the next 5 years?
Over the next five years, the Business Process Outsourcing industry in Australia is expected to grow.
What are the biggest companies in the Business Process Outsourcing market in Australia?
The biggest companies operating in the Business Process Outsourcing market in Australia are Hays Specialist Recruitment (Australia), IBM A/NZ Holdings and WPP AUNZ
What does the Business Process Outsourcing in Australia include?
Human resources and recruitment services and Computer software design and consultancy services are part of the Business Process Outsourcing industry.
Which companies have the highest market share in the Business Process Outsourcing in Australia?
The company holding the most market share in Australia is Hays Specialist Recruitment (Australia).
How competitive is the Business Process Outsourcing industry in Australia?
The level of competition is high and increasing in the Business Process Outsourcing industry in Australia.
