While Outsourcing has been widely adopted within businesses, BPO is an industry that has only recently matured. Companies are still exploring and balancing onshore  versus offshore capabilities. BPO providers who propose services for new verticals or manage the right mix between on and offshore will be valued at a premium.

 
Key trends affecting companies and transactions include:

• Large, Fragmented Market: The BPO market is expected to reach over $1 trillion soon, and highly fragmented with hundreds of firms successfully delivering an array of services in various segments.
• Attractive Segment: BPO is attractive for investors and BPO vendors due to its highly sticky, recurring revenue clients; expectation for stable, steady growth; and economic neutrality.
• Mainstream Alternative: Organizations are increasingly opening-up to outsourcing non-core, yet critical business functions to gain business value.
• M&A Will Continue Being Strong: BPO vendors' acquisition opportunities are growing as valuations improve and as larger vendors focus on scaling their operations to meet capital market growth expectations.
• Offshore Outsourcing is Accelerating: Ubiquitous connectivity and technology platform advancements are enabling a global market for outsourcing services with dramatic labor savings in a range of activities including call centers, help desks, software development, claims and payment processing, and loan/mortgage processing.