Business Process Outsourcing - Asia

Asia

The revenue in the Business Process Outsourcing market is estimated to achieve a substantial growth in Asia, reaching a staggering US$84.08bn by 2024.
This market segment is expected to exhibit a steady annual growth rate (CAGR 2024-2029) of 5.50%, resulting in a remarkable market volume of US$109.90bn by 2029.
Moreover, the average Spend per Employee in this sector is projected to reach US$40.02 in 2024.
In terms of global comparison, it is worth noting that United States is anticipated to generate the highest revenue in the Business Process Outsourcing market, amounting to US$146.30bn in 2024.
This highlights the dominance of the US in this industry.
India remains the dominant player in the Asian Business Process Outsourcing market, leveraging its large English-speaking workforce and cost advantages.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The demand for Business Process Outsourcing (BPO) services in Asia has been steadily increasing in recent years, driven by several factors such as cost savings, access to a large pool of skilled labor, and technological advancements.

Customer preferences: Many companies in Asia are increasingly looking to outsource non-core business functions such as customer service, finance and accounting, and human resources to specialized BPO service providers. This allows them to focus on their core competencies and reduce operational costs while maintaining high levels of service quality.

Trends in the market: In India, the BPO industry has been growing rapidly due to its large pool of English-speaking, highly educated workers, and cost advantages. The country has become a major hub for voice-based BPO services, particularly in the areas of customer service and technical support. However, there is a growing trend towards non-voice services such as data analytics, research, and software development.In the Philippines, the BPO industry has been expanding at a rapid pace, driven by the availability of a large pool of English-speaking workers, a favorable business environment, and government support. The country has become a major hub for voice-based services such as customer service, sales, and telemarketing. However, there is a growing trend towards higher value-added services such as animation, game development, and medical transcription.China has also emerged as a major player in the BPO market, driven by its large population, low labor costs, and improving infrastructure. The country has become a major hub for manufacturing-related services such as supply chain management and logistics. However, there is a growing trend towards higher value-added services such as research and development, engineering, and design.

Local special circumstances: In Malaysia, the BPO industry has been growing rapidly, driven by the availability of a large pool of skilled workers, a favorable business environment, and government support. The country has become a major hub for non-voice services such as data analytics, research, and software development.In Indonesia, the BPO industry is still in its early stages of development, but there is significant potential for growth. The country has a large population and a growing pool of skilled workers, but there are challenges related to infrastructure and government regulations.

Underlying macroeconomic factors: The growth of the BPO industry in Asia is also being driven by underlying macroeconomic factors such as increasing globalization, technological advancements, and changing business models. Companies are increasingly looking to outsource non-core functions to specialized service providers in order to reduce costs and improve efficiency. As a result, the BPO industry is expected to continue growing in Asia 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.