Consolidation in the BPO sector: An opportunity or a threat?


Suppliers in the Business Process Outsourcing (BPO) sector are facing the ongoing struggle of an increasingly competitive marketplace with the rise of mergers and acquisitions (M&A). But is consolidation always the answer? In this article, we will be exploring some of the opportunities and threats that consolidation can bring.


What are the reasons for consolidation in the BPO sector?

Over the years, the sector has seen a number of bigger companies buying smaller suppliers, most recently being Teleperformance and Majorel, and Webhelp and Concentrix. The driving factors for organisations looking to acquire other suppliers include:

What are the risks of such consolidation?

While consolidation can provide these benefits to the acquiring supplier, there are also a number of threats and challenges for the organisations themselves, the clients that are being serviced and the wider macro-environment:

What is the future of market consolidation?

Faced with an unpredictable wider market environment and the necessity to remain competitive, it is likely that this is not the last we will see of mergers and acquisitions. Is the leap worth the potential to fall? Is it time to have a multi-supplier strategy to mitigate these issues around price, competition and focus? Only time will tell.

At The Knowledge Group, we support organisations who may be struggling to navigate complex partnerships with suppliers, which may include, if a merger or acquisition has taken place. Our team of experts can support with understanding new clauses in your contract or exploring new opportunities with alternative contact centre and BPO suppliers.

Talk to us directly.

Share this article