Business Process Outsourcing - Argentina

Revenue in the Business Process Outsourcing market is projected to reach US$536.60m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.69%, resulting in a market volume of US$643.10m by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$24.66 in 2024.
In global comparison, most revenue will be generated United States (US$146.30bn in 2024).

Definition :
The Business Process Outsourcing (BPO) market refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers). A distinction is made between horizontal and vertical outsourcing. Horizontal BPO combines function-centric as well as cross-sector and cross-industry services, such as human resources management or payroll accounting. Vertical BPO, on the other hand, focuses on specialized services and is especially appealing to customers from the financial services industry, the healthcare sector, the manufacturing industry, or the retail sector.

Additional Information:

The Business Process Outsourcing market comprises revenues, revenue change, average spend per employee, and the market shares of the different business sectors. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include Accenture, Cognizant, Wipro, and IBM.

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Back office process outsourcing, such as Genpact, Concentrix, HCL Technologies, Sutherland Global Services, EXL Services, Remote Coworker, and TechSpeed
Front office process outsourcing, such as IBM Global Services, Hewlett Packard Enterprise (HPE), Sitel Group, Teleperformance, and Qualfon

Application outsourcing, such as ScienceSoft, Arcanys, and SumatoSoft
Administration outsourcing, such as Conduent, Genpact, and ADP (Automatic Data Processing)
Infrastructure outsourcing, such as IBM Global Technology Services, Wipro Infrastructure Engineering, and Cognizant Infrastructure Services

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.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.