Industry Report: Professional Services [SDR Ventures]

Key Report Highlights

• Explosive Growth in BPO Fueled by AI
  Business Process Outsourcing (BPO) continues its surge, driven by rising demand and AI-driven efficiencies. Global BPO revenues are projected to reach $544B by 2032, with IT services growing 7% in 2024 while headcount lags—highlighting automation’s impact.

• AI is Reshaping Competitive Advantage
  AI adoption is no longer optional. BPO providers integrating AI are outperforming peers in speed, cost-efficiency, and security. This shift is also creating opportunities in consulting and implementation services to guide businesses through AI integration.

• Third-Party Risk Management in the Spotlight
  High-profile failures like CrowdStrike and Change Healthcare have triggered demand for outsourced third-party risk management (TPRM). The TPRM market is set to grow from $7B in 2024 to $47B by 2037, with strong tailwinds from regulatory scrutiny and data security needs.

• Strategic M&A is Accelerating Across Segments
  Consolidation is picking up. Notable deals include Omnicom’s $25B merger with Interpublic and First Advantage’s $2.2B acquisition of Sterling Check. There’s heightened interest in rollups, especially in compliance tech, HR, and AI services, signaling a hot M&A environment.

• SMBs Are in the Driver’s Seat for Niche Opportunities
  With enterprise buyers looking for nimble, innovative partners, small and mid-sized firms with domain expertise in AI, BPO, or compliance are positioned for growth—whether through strategic acquisition or organic expansion.

SDR Ventures is a Denver-based investment bank specializing in mergers and acquisitions advisory and private capital formation. An Axial member since 2010, SDR Ventures works across a variety of industries and has marketed more than 180 deals on the Axial platform.

SDR Ventures is a trusted member of the Axial Partnership Program and contributes content and industry insights to Axial’s Middle Market Review. The following report is an SDR Ventures publication, which has been approved for Axial to share with its network.

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