Canada Labor Outsourcing Market Size, Share, and COVID-19 Impact Analysis, By Industry Type (IT and Software Development, Customer Service, Manufacturing, Healthcare, Finance), By Service Type (Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO), and Legal Process Outsourcing (LPO)), By End User (SMEs, Large Enterprise, and Others), and Canada Labor Outsourcing Market Insights, Industry Trend, Forecasts to 2033

Canada Labor Outsourcing Market Insights Forecasts to 2033

• The Market Size is Growing at a CAGR of 6.3% from 2023 to 2033
• The Canada Labor Outsourcing Market Size is Expected to Hold a Significant Share by 2033

The Canada Labor Outsourcing Market Size is Anticipated to Hold a Significant Share by 2033, Growing at a CAGR of 6.3% from 2023 to 2033.

Market Overview

Outsourcing labor or offshoring involves hiring individuals with the necessary abilities and skills to carry out tasks. Canada is becoming known as a major global job creator, with a growing number of Canadian companies and international businesses establishing headquarters in the country. The increasing need for professionals from foreign countries is driving up the demand for RPO service providers among Canadian employers. The demand for technical personnel is increasing as sectors like retail, manufacturing, BFSI, and IT continue to expand. This will lead to a higher recruitment of technical personnel in Canada. Employers are choosing to use RPO service providers to attract the top talent needed for organizational growth, which is driving the growth of the Canada Labor Outsourcing market. The market growth is being driven primarily by the demand for an efficient hiring process and lower operating expenses. The Recruitment Process Outsourcing (RPO) providers carry out various tasks, such as sourcing, screening candidates, and ensuring the quality of hires. Service providers are using advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) to improve their abilities through self-scheduling interviews and automated CV screening.

Report Coverage

This research report categorizes the market for the Canada labor outsourcing market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada labor outsourcing market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada labor outsourcing market.

Driving Factors

Players are driven to create new services to gain market share due to factors like the increased focus on reducing operational costs, the lack of skilled workers, and the integration of advanced technology in outsourced services. There is anticipation of considerable growth in the market during the forecasted time frame. Various factors are driving organizations to increasingly opt for outsourcing services. A significant factor is the potential for cost savings by outsourcing to countries with cheaper labor, resulting in significant reductions in expenses for wages, benefits, and overhead costs. Moreover, companies are directing their resources and management attention towards core business operations, strengthening their competitive advantage and supporting expansion.

Restraining Factors

Canada has labor costs that are comparatively high about numerous other countries, leading to a potential decrease in interest in outsourcing for companies attempting to reduce costs.

Market Segmentation

The Canada Labor Outsourcing market share is classified into Industry type, service type, and end user.

• The IT and software development segment is expected to hold the largest market share through the forecast period.   

The Canada Labor Outsourcing Market is segmented By Industry type into IT and software development, customer service, manufacturing, healthcare, and finance. Among these, the IT and software development segment is expected to hold the largest market share through the forecast period. Due to the fast rate of technological progress and digital transformation in many sectors, there is a high need for IT and software development services. Businesses frequently subcontract these tasks to obtain specific expertise and efficiently control expenses.

• The business process outsourcing (BPO) segment dominates the market with the largest market share over the predicted period.

The Canada Labor Outsourcing Market is segmented by service type into business process outsourcing (BPO), knowledge process outsourcing (KPO), and legal process outsourcing (LPO). Among these, the business process outsourcing (BPO) segment dominates the market with the largest market share over the predicted period. BPO includes various functions such as customer service, finance and accounting, human resources, and others. The broad range of functions it covers makes it an important part of the outsourcing industry.

• The large enterprise segment dominates the market with the largest market share over the predicted period.

The Canada Labor Outsourcing Market is segmented by end-users into SMEs, large enterprises, and others. Among these, the large enterprise segment dominates the market with the largest market share over the predicted period. Large corporations frequently require a wider variety of services, such as IT, customer support, and financial assistance, prompting them to outsource these operations. Their increased level of activity results in a greater need for services that are contracted out.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Canada labor outsourcing market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companie

• CGI Group Inc.
• TELUS International
• S.i. Systems
• IBM Canada
• ManpowerGroup Canada
• Randstad Canada
• Accenture Canada
• HCL Technologies Canada
• Cognizant Technology Solutions
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-added resellers (VARs)

Market Segment

This study forecasts revenue at Canada, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Canada Labor Outsourcing Market based on the below-mentioned segments:

Canada Labor Outsourcing Market, By Industry Type

• IT and Software Development
• Customer Service
• Manufacturing
• Healthcare
• Finance

Canada Labor Outsourcing Market, By Service Type

• Business Process Outsourcing (BPO)
• Knowledge Process Outsourcing (KPO)
• Legal Process Outsourcing (LPO)

Canada Labor Outsourcing Market, By End User

• SMEs
• Large Enterprise
• Others