KPO market poised for $90B growth by 2027

NEW YORK, UNITED STATES — The global knowledge process outsourcing (KPO) market looks set to grow at a 15.5% compound annual growth rate between 2022 and 2027, potentially adding over $90.55 billion in revenue. 

According to a new report by market research firm Technavio, the market’s key growth drivers include wider digital transformation and companies leveraging technologies like artificial intelligence (AI) and machine learning (ML) to enhance operations. 

By partnering with KPO providers, firms can tap specialized expertise to implement cutting-edge innovations more effectively.

However, data security issues could hamper the market’s uptake. Technavio said that the outsourcing of knowledge processes can risk the confidentiality, integrity, and availability of sensitive data. Data breaches can lead to consequences such as financial loss, reputational damage, and legal issues. 

Of the KPO segments, legal services should see particularly rapid growth. Rising cross-sector demand coupled with offshore labor cost advantages creates lucrative prospects for legal contracting and IP work.

Geographically, North America is estimated to contribute 39% to the growth of the global market during the forecast period, given the region’s early adoption of advanced technologies. 

The Asia-Pacific region is also forecasted to rapidly gain ground as talent pools strengthen in India, China, and the Philippines.