Industry Report: Business Process Outsourcing Q4 2025 [Bridgepoint IB]

Key Report Highlights

• Global BPO Market Set to Nearly Triple by 2034
  The global business process outsourcing (BPO) market, valued at $315.5 billion in 2024, is projected to reach $840.6 billion by 2034, growing at a 10.3% CAGR. This growth is fueled by widespread AI adoption, rising demand for automation, and enterprise reliance on outsourcing to scale operations while controlling costs.
• AI and RPA Are Reshaping Value Creation in BPO
  AI-powered chatbots, predictive analytics, and robotic process automation (RPA) are fundamentally transforming service delivery. BPOs deploying RPA have reported 30–50% cost savings, 80% faster task completion, and improved compliance. Digital capabilities—especially in AI, cloud, and cybersecurity—are now the most important drivers of both competitive advantage and valuation.
• M&A Activity Targets Niche and Tech-Enabled Providers
  M&A in the BPO sector remains strong, with buyers seeking firms that specialize in automation, intelligent analytics, and cloud integration. Notable Q4 deals include Auxis (acquired by Grant Thornton), Requordit (acquired by Willcrest), and iSpace Global (acquired by Lyric). Many transactions reflect demand for vertical expertise and scalable, tech-first platforms.
• Valuation Multiples Favor Automation-Heavy Operators
  While median BPO EV/EBITDA multiples have declined to 5.5x—down from a peak of 10.9x—firms with embedded AI and cloud-based solutions continue to command premiums. Traditional labor-intensive operators remain near trough valuations as margins and growth expectations compress, especially in commoditized back-office services.
• RPA Market Expansion Creates Opportunities for Mid-Market Innovators
  The global RPA market, worth $18.2 billion in 2024, is expected to exceed $72.6 billion by 2032, growing at an 18.2% CAGR. More than 80% of global enterprises have deployed RPA in at least one process. For mid-market BPO providers, integrating low-code, AI-enabled bots represents a pathway to scalable differentiation, higher margins, and more favorable contract terms.

Bridgepoint Investment Banking is a boutique investment bank focused on providing capital raising and M&A advisory services to middle-market companies across North America. Founded in 2012, the firm specializes in sectors including industrials, transportation, healthcare, business services, consumer, and technology.

With over 360 years of combined experience and more than 460 completed transactions totaling over $380 billion, Bridgepoint’s senior team brings deep expertise to every engagement. Headquartered in Omaha with offices in Chicago, Denver, New York, and Lincoln, the firm conducts securities transactions through M&A Securities Group, Inc., member FINRA and SIPC.

Interested in sharing your industry reports? Contact: kaitlinn.thatcher@axial.net