Business Process Outsourcing Industry ESG Thematic Report, 2023

Environment, Social and Governance (ESG) in the Business Process Outsourcing Industry

Increased economic activity in various industries has paved way for increased activity across the Business Process Outsourcing (BPO) industry. The industry through its functions contributes to ESG in many ways, specifically contributing positively to the environment and governance aspects through integrating different technologies. The BPO market through its services influences the social aspect of the ESG as it focuses on improving customer relationship management and employs many human resources across different industries.

Key leaders of the BPO industry have included ESG policies into their everyday functioning, thereby trying to create an influence on corporate customers in terms of ESG.

ESG Trends

The Covid-19 pandemic has impacted the BPO industry in a positive way, by letting the companies to adopt remote work mode during pandemic and hybrid model post pandemic. This has led to the usage of cloud computing services in the market enabling companies to reduce carbon footprint across their value chain and reducing the use of conventional logistical support to an extent thereby allowing companies to achieve the net zero target and paving way for achieving the UNSDG (United Nations Sustainable Development Goals) goals of innovation, industry, and infrastructure (SDG9), Responsible production and consumption patterns (SDG 12), and Climate Action (SDG13).

The cloud computing services have also been reported to improve the governance aspect of the customers, since cloud computing services are stated to have improved security, eliminating the risk of data breach, thereby helping the customers to achieve the UNSDG goal of institutions for peace and justice (SDG16).

The challenge for the BPO market arises in form of energy sourcing, due to the usage of cloud computing infrastructures which require power at industrial scale from conventional power sources, which use thermal and natural gas as their power source, increasing the emissions and straining the environment impending the UNSDG goal of climate action (SDG13), for the companies in the market. Companies in this market also require ensuring that their energy demands are met in a sustainable way and hence have a significant influence on UN SDG 7: Affordable and Clean Energy.

In the governance aspect of ESG in the business outsourcing process market, key leaders of the market have made policies for safe usage of cloud computing technology by creating cyber security policies. One of the top companies of the market have created a cyber-security team for prevention and detection of data breach, impacting the sphere of governance of ESG of the industry. These policies and strategies at whole create a better governance structure of the players of the market and for the clients of companies of the market, making way for UNSDG goal of institutions for peace and justice (SDG16).

Growth of the Business Process Outsourcing Market

The BPO market at global scale was valued at USD 306.2 billion as of 2021 and is forecasted to expand at a CAGR (compound annual growth rate) of 8.9% from 2022 to 2030. Usage of technologies such as cloud computing and data analytics has impacted the BPO market in the spheres of environment, although certain challenges remain unresolved, and in the governance of ESG.

Key Companies in this theme

    • Accenture

    • Amdocs

    • Capgemini

    • CBRE Group Inc.

    • HCL Technologies Limited

Scope of the Business Process Outsourcing Industry ESG Thematic Report

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Aspects of the Business Process Outsourcing Industry ESG Thematic Report

    • Offers a global perspective of the BPO market and the policies and measures taken by the players, for overcoming the challenges faced in terms of Environment, Social and Governance.

    • Key insights into the sustainability practices of major players in the market.