Business Process Outsourcing - ASEAN

ASEAN

The projected revenue for the Business Process Outsourcing market in ASEAN is expected to reach US$8.87bn in 2024.
This market segment is projected to experience an annual growth rate of 6.20% (CAGR 2024-2029), resulting in a market volume of US$11.98bn by 2029.
In terms of average Spend per Employee, it is projected to reach US$25.59 in 2024.
When comparing revenues globally, United States is expected to generate the highest revenue of US$146.30bn in 2024.
The Philippines continues to dominate the BPO market in ASEAN with its strong English language skills and competitive labor costs.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Business Process Outsourcing (BPO) market in ASEAN is experiencing a steady growth in recent years.

Customer preferences: One of the main drivers of the BPO market in ASEAN is the increasing demand for cost-effective solutions by businesses. Many companies are looking to outsource their non-core functions to reduce operational costs and focus on their core competencies. Additionally, the availability of a large pool of skilled and multilingual talent in the region is attracting businesses looking to outsource their customer support and back-office operations.

Trends in the market: In Indonesia, the BPO market is witnessing a shift towards higher value-added services such as analytics, digital marketing, and software development. This is driven by the country's growing tech startup ecosystem and the government's push towards developing the digital economy.In the Philippines, the BPO market remains a significant contributor to the country's economy. However, the industry is evolving, and companies are moving towards higher value-added services such as healthcare information management, finance and accounting, and legal process outsourcing. The country's strong English language proficiency and cultural affinity with the West continue to attract businesses looking to outsource their customer support and other services.In Malaysia, the BPO market is growing, driven by the government's push towards developing the country's digital economy. The country has a strong IT infrastructure and a highly skilled workforce, making it an attractive destination for businesses looking to outsource their IT and back-office functions.

Local special circumstances: In Vietnam, the BPO market is growing rapidly, driven by the country's young and highly educated workforce. The government's push towards developing the digital economy and the country's strategic location in Southeast Asia are also contributing to the growth of the industry.In Thailand, the BPO market is still in its early stages, but the government's push towards developing the country's digital economy is expected to drive growth in the coming years. The country's strategic location in Southeast Asia and its strong infrastructure make it an attractive destination for businesses looking to outsource their functions.

Underlying macroeconomic factors: The BPO market in ASEAN is also benefiting from favorable macroeconomic factors such as low labor costs, supportive government policies, and a growing middle class. The region's strategic location between China and India, two of the world's largest economies, also makes it an attractive destination for businesses looking to tap into these markets.In conclusion, the BPO market in ASEAN is witnessing steady growth, driven by customer preferences for cost-effective solutions and access to a large pool of skilled talent. Each country in the region has its own unique strengths and opportunities, which are contributing to the growth of the industry. The favorable macroeconomic factors in the region are also expected to continue driving growth in the coming years.

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.