Business Process Services Market Trends: Quarterly Report for Q2 2022

July, 2022


Avasant provides key information on trends in the business process services space and pricing trends in this quarterly report. The report covers the market (buyer) perspective, macro trends from the service provider community, and the space’s pricing, solution, and staffing trends. The report covers services, including solution and staffing trends in finance and accounting, supply chain management, hire-to-retire, and customer services. The geographic coverage is global, with a larger share of data points from North America. The report builds on insights gathered through our enterprise interactions, ongoing market research and data collection, and the AvaMarkTM Price Benchmarking database.

In addition to pricing commentary, Avasant covers market data from providers through several sources, such as public disclosures, market interactions, and deal data. This report also highlights the key trends in the market and Avasant’s viewpoint on the industry’s future direction.

Key buyer trends shaping the market:

    • Increase in demand for non-transactional processes across industries and regions
    • Shift toward a maximum offshore operating model
    • High focus on innovation and transformation initiatives
    • Shift from fixed to gain share/outsourcing pricing models

Key service provider trends:

    • Revenue continues to increase for providers
    • Investments are increasing while operating margins are under pressure
    • Clients are receptive to growing prices
    • Converged IT-BPO and multitower deals dominate sourcing

Managed services pricing and solution trends:

    • Resource pyramid is shifting toward junior staffing
    • Price increments are significant in non-transactional services FTE (full-time equivalent) rate cards
    • Pricing strategy is key in managed services deals
    • Automation-led digital operations are in the spotlight