Business Process Outsourcing - Argentina

Argentina

The projected revenue for the Business Process Outsourcing market in Argentina is expected to reach US$536.60m in 2024.
It is anticipated that there will be a steady annual growth rate of 3.69% from 2024 to 2029, resulting in a market volume of US$643.10m by 2029.
Furthermore, the average Spend per Employee in the Business Process Outsourcing market in Argentina is projected to reach US$24.66 in 2024.
In comparison to other countries globally, United States is expected to generate the highest revenue in the Business Process Outsourcing market, with an estimated amount of US$146.30bn in 2024.
Argentina has emerged as a leading destination for Business Process Outsourcing in the IT Services market, attracting multinational companies due to its skilled workforce and competitive costs.

Key regions: China, Netherlands, Japan, Brazil, Germany

Market

Region

Region comparison

Currency

Analyst Opinion

Argentina, known for its tango and football, is also a key player in the Business Process Outsourcing (BPO) market.

Customer preferences: Argentina's BPO market is driven by customer preference for cost-effective and high-quality services. The country's highly skilled workforce, proficiency in English and Spanish, and favorable time zone make it an attractive destination for outsourcing services. Additionally, the country's proximity to the United States and other Latin American countries makes it a preferred outsourcing destination for these regions.

Trends in the market: The BPO market in Argentina is witnessing a shift towards digitalization, with companies increasingly adopting automation and artificial intelligence (AI) to streamline their processes. This trend is driven by the need to reduce costs, improve efficiency, and enhance customer experience. Furthermore, the COVID-19 pandemic has accelerated the adoption of digital technologies, as companies look for ways to operate remotely and maintain business continuity.Another trend in the BPO market in Argentina is the growing demand for specialized services. Companies are seeking BPO providers who can offer niche services such as data analytics, social media management, and customer experience management. This trend is driven by the need for companies to differentiate themselves in a highly competitive market and deliver personalized services to their customers.

Local special circumstances: Argentina's BPO market is characterized by a highly skilled workforce, with a large pool of professionals in fields such as engineering, finance, and IT. The country's universities and technical schools produce a steady stream of graduates, ensuring a continuous supply of talent for the BPO industry.However, the country's economic and political instability has been a major challenge for the BPO industry. The country has been plagued by high inflation, currency devaluation, and a volatile business environment. This has made it difficult for companies to plan and invest in the country, and has led to a decline in foreign investment.

Underlying macroeconomic factors: Argentina's BPO market is influenced by a range of macroeconomic factors, including government policies, currency exchange rates, and global economic trends. The country's government has taken steps to promote the BPO industry, including offering tax incentives and investing in infrastructure. However, the country's economic instability and high inflation rate have made it difficult for companies to do business in the country.In conclusion, Argentina's BPO market is driven by customer preference for cost-effective and high-quality services, and is witnessing a shift towards digitalization and specialization. While the country's highly skilled workforce and favorable time zone make it an attractive outsourcing destination, the country's economic and political instability remains a major challenge for the industry.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.