Business Process Outsourcing - Cyprus

Revenue in the Business Process Outsourcing market is projected to reach US$54.19m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.29%, resulting in a market volume of US$70.12m by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$78.69 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

Cyprus, known for its beautiful beaches and rich history, has also become a hub for business process outsourcing (BPO) services.

Customer preferences: The BPO market in Cyprus has been growing due to the country's strategic location and its highly skilled workforce. Many companies in Europe have been outsourcing their business processes to Cyprus due to the country's proximity to Europe and the Middle East. Additionally, Cyprus has a highly educated workforce with proficiency in multiple languages, making it an attractive destination for companies looking to outsource their customer service and back-office operations.

Trends in the market: One of the major trends in the BPO market in Cyprus is the increasing demand for digital transformation services. As more companies are moving towards digitalization, there has been a growing need for BPO providers to offer services that can help companies transform their business processes. This includes services such as automation, data analytics, and artificial intelligence. Another trend in the market is the growing demand for multilingual services. With Cyprus being a multilingual country, BPO providers are able to offer services in multiple languages, making it an attractive destination for companies looking to outsource their customer service operations.

Local special circumstances: Cyprus has a unique advantage in the BPO market due to its favorable tax regime. The country offers a low corporate tax rate of 12.5%, making it an attractive destination for companies looking to outsource their business processes. Additionally, Cyprus has a stable political and economic environment, which provides a secure and stable environment for businesses to operate in.

Underlying macroeconomic factors: The BPO market in Cyprus is also being driven by the country's strong economic growth. Cyprus has experienced robust economic growth in recent years, which has led to an increase in foreign investment and business activity. This has created a favorable environment for BPO providers, as companies are looking to outsource their non-core business processes to focus on their core competencies. Additionally, the country's membership in the European Union provides BPO providers with access to a large market and a stable regulatory environment. In conclusion, the BPO market in Cyprus is thriving due to the country's strategic location, highly skilled workforce, favorable tax regime, stable political and economic environment, and strong economic growth. As the demand for digital transformation services and multilingual services continues to grow, Cyprus is well-positioned to continue to attract foreign investment and become a leading destination for BPO services in the region.

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.