Business Process Outsourcing - Armenia

Revenue in the Business Process Outsourcing market is projected to reach US$41.13m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.81%, resulting in a market volume of US$57.18m by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$29.69 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

Armenia, a small country located in the South Caucasus region of Eurasia, has been experiencing a steady growth in its Business Process Outsourcing (BPO) market in recent years.

Customer preferences: The country's highly skilled workforce and low labor costs have made it an attractive destination for BPO services, particularly in the fields of IT, finance, and accounting. Additionally, Armenia's proximity to Europe and Asia has made it a convenient location for companies looking to outsource their business processes.

Trends in the market: One of the key trends in the Armenian BPO market is the growing demand for IT-related services. With a strong focus on technology and innovation, many companies are looking to outsource their software development, data analytics, and cybersecurity needs to Armenian firms. Another trend is the rise of multilingual support services, as more companies are expanding their operations globally and require customer support in multiple languages.

Local special circumstances: Armenia's government has been actively promoting the development of the BPO industry, offering tax incentives and other forms of support to attract foreign investment. Additionally, the country has a well-established education system that produces a large pool of highly skilled workers in fields such as engineering, computer science, and mathematics.

Underlying macroeconomic factors: Armenia's economy has been growing steadily in recent years, with a focus on developing its technology and innovation sectors. The country's strategic location and favorable business environment have also contributed to its attractiveness as a BPO destination. However, Armenia faces challenges such as political instability and a lack of infrastructure, which could impact the growth of its BPO market in the future.

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.