Business Process Outsourcing - Bangladesh

Bangladesh

Revenue in the Business Process Outsourcing market is projected to reach US$0.59bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 11.13%, resulting in a market volume of US$1.00bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$7.58 in 2024.
In global comparison, most revenue will be generated in the United States (US$146.30bn in 2024).

Key regions: United Kingdom, United States, Brazil, Japan, Netherlands

Market

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Analyst Opinion

The Business Process Outsourcing (BPO) market in Bangladesh has been steadily growing in recent years, with a range of factors contributing to this development.

Customer preferences: One reason for the growth of the BPO market in Bangladesh is the increasing demand for cost-effective solutions from businesses worldwide. As companies look to streamline their operations and reduce costs, outsourcing certain business processes to countries like Bangladesh has become an attractive option. Additionally, the country's young and educated workforce, with a high level of proficiency in English, has made it an ideal destination for outsourcing services.

Trends in the market: One of the key trends in the BPO market in Bangladesh is the increasing focus on technology and automation. As companies seek to improve efficiency and reduce costs, they are looking to automate many of their business processes. In response, BPO service providers in Bangladesh are investing in new technologies and tools to meet these demands. Additionally, there has been a shift towards providing more specialized services, such as data analytics and digital marketing, as businesses seek to gain a competitive edge in the global market.

Local special circumstances: Bangladesh has a number of unique factors that have contributed to the growth of its BPO market. One of these is the government's support for the industry, with initiatives such as tax breaks and subsidies for BPO service providers. Additionally, the country's strategic location, with easy access to both India and Southeast Asia, has made it an attractive destination for businesses looking to outsource their operations.

Underlying macroeconomic factors: The growth of the BPO market in Bangladesh is also linked to broader macroeconomic factors. The country has experienced strong economic growth in recent years, with a stable political environment and a growing middle class. This has led to increased demand for services, including BPO services, from both domestic and international businesses. Additionally, the government's focus on developing the country's infrastructure, including its technology and communications networks, has made it easier for BPO service providers to operate and connect with clients around the world.In conclusion, the BPO market in Bangladesh is poised for continued growth in the coming years, driven by a range of factors including customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As businesses worldwide seek to reduce costs and improve efficiency, Bangladesh's young and educated workforce, combined with its government support and strategic location, make it an attractive destination for outsourcing services.

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.