- Summary
- Table Of Content
- Methodology
Knowledge Process Outsourcing Market Size:
Knowledge Process Outsourcing Market Size is estimated to reach over USD 169.55 Billion by 2032 from a value of USD 55.36 Billion in 2024 and is projected to grow by USD 62.71 Billion in 2025, growing at a CAGR of 16.8% from 2025 to 2032.
Knowledge Process Outsourcing Market Scope & Overview:
Knowledge process outsourcing is the practice of hiring external experts to perform a company's knowledge-based tasks. KPO transcends traditional outsourcing models, which consists of high-value services ranging from research and analytics to consultancy and intellectual property management. This rapidly increasing sector represents a shift in the outsourcing sector, where strategic partnerships between service providers compel them to utilize global talent pools, while driving innovation and fostering competitive advantage.
Knowledge Process Outsourcing Market Dynamics - (DRO) :
Key Drivers:
Increasing focus on core competencies is driving the knowledge process outsourcing market expansion
Knowledge process outsourcing is emerging as a strategic approach for organizations to concentrate on their core competencies while outsourcing non-core functions to specialized service providers. Companies are increasingly leveraging these services to streamline their operations, enhance efficiency, and drive innovation. By outsourcing high-skill tasks such as data analytics, research and development, and financial analysis, businesses can access resources, while allowing them to focus on core activities essential for sustainable growth and competitive advantage. Moreover, the proliferation of digital technologies such as artificial intelligence, machine learning, and big data analytics is further fueling the expansion of this sector.
- For instance, in May 2022, Informatica announced the collaboration with Wipro, to provide cloud-based data analytics solutions to the market through Wipro Fullstride cloud data platform. With this partnership, Informatica will leverage Wipro’s analytics and AI to facilitate cloud-based transformations and enable scalability.
Thus, according to the knowledge process outsourcing market analysis, growing focus on core competencies are driving the knowledge process outsourcing market size.
Key Restraints:
Data privacy concerns are restraining the knowledge process outsourcing market demand
As businesses increasingly rely on service providers to handle sensitive data and critical business processes, ensuring the security and protection of confidential information has become a top priority. Further, data protection laws and regulations vary significantly across regions, posing restraints for organizations to ensure compliance with multiple regulatory frameworks. Organizations must carefully evaluate the data privacy practices and regulatory compliance measures of service providers, including data encryption, access controls, and contractual agreements governing data handling and protection.
Consequently, the aforementioned restraints are hampering the knowledge process outsourcing market size.
Future Opportunities :
Automation integration is expected to create potential growth for knowledge process outsourcing market opportunities
The knowledge process outsourcing market are witnessing a significant surge in automation integration. As businesses strive for efficiency and cost-effectiveness, automation technologies are becoming essential in streamlining various outsourcing functions. Further, data processing, analytical tasks, and automation tools have been integrated into KPO processes, enabling faster turnaround times and improved accuracy. Moreover, the integration of automation in the KPO sector has led to notable transformations in workforce dynamics. While some repetitive tasks have been automated, there has been an upskill of human resources to handle more complex and value-added activities.
- For instance, in January 2025, Infosys announced the partnership with Google Cloud, to launch a new Center of Excellence. The center will focus on developing customized solutions across multiple domains, such as software development lifecycle, application modernization, and contact center AI.
Thus, based on the above analysis, automation integration not only optimize operational efficiency but also contribute to the professional development and resilience of the workforce in the knowledge process outsourcing market opportunities.
Knowledge Process Outsourcing Market Segmental Analysis :
By Service:
Based on service, the knowledge process outsourcing market is segmented into analytics & market research, customer & marketing analytics, operations & supply chain analytics, competitive intelligence & industry analysis, engineering & design, financial process outsourcing, legal process outsourcing, publishing outsourcing, research & development outsourcing, and others.
Trends in service:
- The growing demand for professional and manged services such as training, managed services, and maintenance in financial processes, legal processes, and research & development are driving the knowledge process outsourcing market.
- The integration of AI into knowledge process outsourcing services opens a huge opportunity for service providers to provide better data driven insights, process automation, and predictive analytics.
The analytics & market research segment accounted for the largest revenue share in the year 2024.
- Analytics & market research services utilize data analytics techniques to extract insights from data sets. The service allows companies to access experts with in-depth understanding and insights into complex industry trends.
- KPO assist businesses in reducing design-to-market lead times, conducting market research and competition, and managing key hardware efficiently.
- Therefore, the above-mentioned factors are bolstering the knowledge process outsourcing market growth.
The legal process outsourcing (LPO) segment is anticipated to register the fastest CAGR during the forecast period.
- LPO requires timeliness, clear communication, and a thorough understanding of the client's needs to give customized solutions.
- Legal process outsourcing has broad legal expertise and advanced technologies that assist organizations in gathering and synthesizing facts, legal research, and client relations.
- For instance, in January 2024, Addlesaw Goddard, a law firm, launched the Innovation Graduate Scheme to create alternative routes in the legal sector. The scheme will provide successful candidates with two-year paid role within the firm’s innovation group, which tests, develops, and rolls out innovative technologies to enable the delivery of legal services.
- Thus, the above mentioned factors are expected to drive the knowledge process outsourcing market trends during the forecast period.
By End User:
Based on end user, the knowledge process outsourcing market is segmented into BFSI, healthcare, IT & telecom, manufacturing, pharmaceutical, retail, and others.
Trends in End User:
- Organizations across diverse sectors, such as finance, healthcare, IT and legal, are increasingly leveraging outsourcing services to access specialized skills, so that internal resources focus on core competencies.
- Retail organizations use knowledge process outsourcing services from service providers to help them unveil their solutions for complex business operations and activities.
The BFSI segment accounted for the largest revenue share of 29.44% in the year 2024.
- The service providers assist insurance companies, investment firms, banks, and financial institutions by providing expertise in data analytics, market research, financial modelling, and compliance reporting, allowing clients to optimize operations, mitigate risks, and drive profitability in a highly regulated and competitive market.
- The financial institution section consists of financial databases from several banks and sensitive client information. Organization outsources procedures such as data administration, equities research, and financial analytics to ensure efficient information management.
- For instance, in April 2024, Genpact announced the partnership with Microsoft, to drive finance transformations across enterprises. The partnership brings Microsoft Azure OpenAI services with Genpact’s expertise to enable financial institutions in quicker decision-making, which is supported by AI.
- These factors and developments in the BFSI sector are driving the knowledge process outsourcing market growth.
The IT and telecom segment is anticipated to register the fastest CAGR during the forecast period.
- The IT and telecom represent a significant segment in the knowledge process outsourcing market. Outsourcing firms catering to this segment offer services such as software development, IT support, network management, and cybersecurity.
- With the rapid pace of technological advancements and digital transformation initiatives across industries, there is a growing need for specialized IT skills and expertise.
- Outsourcing IT-related functions to KPO providers enables companies to access talent pools and adopt innovative technologies faster.
- These factors are driving the knowledge process outsourcing market trends and share during the forecast period.
Regional Analysis:
The global market has been classified by region into North America, Europe, Asia-Pacific, MEA, and Latin America.
Asia Pacific knowledge process outsourcing market expansion is estimated to reach over USD 44.41 billion by 2032 from a value of USD 13.90 billion in 2024 and is projected to grow by USD 15.81 billion in 2025. Out of this, the China market accounted for the maximum revenue split of 29.8%. Additionally, countries such China, India, and Philippines are major markets for outsourcing high-end knowledge processes. Further, India has adopted the culture of advanced technologies, which cover machine learning, AI, and robotic process automation (RPA). These trends would further drive the regional knowledge process outsourcing market share and growth during the forecast period.
- For instance, in February 2022 Clinixir Company Limited, selected Oracle's innovative clinical research and pharmacovigilance solutions as its eClinical platform. Clinixir chose the Oracle Health Sciences Clinical One Cloud Service for its comprehensive, end-to-end technology capabilities and breadth of applications.
North America market is estimated to reach over USD 59.29 billion by 2032 from a value of USD 19.53 billion in 2024 and is projected to grow by USD 22.11 billion in 2025. Innovation and early adopters of technology such as ML, RPA, and AI, are the major growth drivers for the region. Additionally, with the growing focus on regulatory knowledge and compliance management, the demand for KPO services in the region is on the rise. These factors would further contribute to its leading position in the knowledge process outsourcing market share.
- For instance, in January 2022, IBM and Francisco signed an agreement, under which Francisco Partners will acquire analytics assets and healthcare data from IBM, which is a part of the Watson Health business. With this collaboration, Fransico Partners will leverage technology to provide innovative solutions in the healthcare ecosystem, such as healthcare providers and patients.
According to the knowledge process outsourcing industry analysis, the European market has experienced significant development. The region benefits from its well-established education system, which produces a pool of talented professionals in diverse domains such as finance, legal services, and healthcare. Additionally, Latin American organizations outsource business processes such as customer support, finance and accounting, IT services, and human resources to third-party service providers, both domestically and internationally. Further, the growing need for specialized knowledge and skills in the outsourcing sector help MEA organizations to automate their processes and increase their levels of efficiency. These services are offered by service providers to organizations, assisting them in leveraging the potential of AI and ML to enhance their business operations and obtain a competitive advantage in the market.
Top Key Players & Market Share Insights:
The global knowledge process outsourcing market is highly competitive with major players providing outsourcing solutions to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the market. Key players in the knowledge process outsourcing industry include-
- Accenture (Ireland)
- Genpact (India)
- Mphasis (India)
- R. Donnelley & Sons Company (U.S.)
- Wipro (India)
- HCL Technologies Limited (India)
- ExlService Holdings, Inc. (U.S.)
- McKinsey & Company (U.S.)
- Moody's Investors Service, Inc. (U.S.)
- THOMSON REUTERS (Canada)
Recent Industry Developments :
Expansion:
- In April 2022, Health Partners selected ExlService Holdings, Inc., to create leading-edge care management platform. With this collaboration, Health Partners can immediately link its population health data with their care management procedure, which lead to actions that are more targeted, successful as well as higher member involvement.
Knowledge Process Outsourcing Market Report Insights:
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 169.55 Billion |
| CAGR (2025-2032) | 16.8% |
| By Service |
|
| By End User |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the Knowledge Process Outsourcing market? +
Knowledge Process Outsourcing Market Size is estimated to reach over USD 169.55 Billion by 2032 from a value of USD 55.36 Billion in 2024 and is projected to grow by USD 62.71 Billion in 2025, growing at a CAGR of 16.8% from 2025 to 2032.
Which is the fastest-growing region in the Knowledge Process Outsourcing market? +
Asia-Pacific is the region experiencing the most rapid growth in the market. As companies in the region are venturing into new markets, there is a surge in demand for KPO services in the regional market.
What specific segmentation details are covered in the Knowledge Process Outsourcing report? +
The knowledge process outsourcing report includes specific segmentation details for service, end user, and region.
Who are the major players in the Knowledge Process Outsourcing market? +
The key participants in the market are Accenture (Ireland), Genpact (India), HCL Technologies Limited (India), ExlService Holdings, Inc. (U.S.), McKinsey & Company (U.S.), Moody's Investors Service, Inc. (U.S.), THOMSON REUTERS (Canada), Mphasis (India), R.R. Donnelley & Sons Company (U.S.), Wipro (India), and others.
