Business Process Outsourcing - Czechia

Revenue in the Business Process Outsourcing market is projected to reach US$1.70bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.01%, resulting in a market volume of US$2.17bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$316.10 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

The demand for outsourcing services has been increasing globally due to the growing need for cost optimization and operational efficiency. Czechia has been experiencing a similar trend in the Business Process Outsourcing (BPO) market.

Customer preferences: Czechia has a highly skilled workforce with proficiency in various languages, making it a favorable outsourcing destination for companies looking to expand their operations across Europe. The country's strategic location and favorable time zone also make it an attractive location for outsourcing services. Additionally, the country's stable political environment, pro-business policies, and low labor costs have contributed to the growth of the BPO market.

Trends in the market: One of the significant trends in the BPO market in Czechia is the increasing demand for IT outsourcing services, including software development, application management, and infrastructure management. The country has a strong IT industry, and the availability of high-quality IT professionals has made it a preferred destination for IT outsourcing. The BPO market in Czechia has also witnessed an increase in demand for finance and accounting services, customer service, and human resources outsourcing.Moreover, there has been a shift towards nearshoring, where companies prefer to outsource services to nearby countries to reduce costs and improve communication. Czechia's proximity to Western European countries has made it an attractive nearshoring destination.

Local special circumstances: The BPO market in Czechia is highly competitive, with many domestic and international players competing for market share. The country's favorable business environment has led to the establishment of many BPO service providers, including global majors such as IBM, Accenture, and Infosys.However, the country's relatively small market size and limited domestic demand have led to some challenges for BPO service providers. To remain competitive, many service providers have focused on providing specialized services and developing niche expertise.

Underlying macroeconomic factors: Czechia's economy has been growing steadily, driven by exports, domestic consumption, and foreign investment. The country's GDP has been growing at a rate of around 2-3% annually, and the unemployment rate has been consistently low. These macroeconomic factors have contributed to the growth of the BPO market in Czechia.Moreover, the country's membership in the European Union has provided access to a large market and facilitated the free movement of goods and services. The country has also implemented several reforms to improve the business environment, including simplifying the tax system, reducing bureaucracy, and improving infrastructure.In conclusion, the BPO market in Czechia has been growing steadily, driven by the country's skilled workforce, favorable business environment, and strategic location. The market has witnessed a shift towards IT outsourcing and nearshoring, and service providers have focused on providing specialized services to remain competitive. The country's stable macroeconomic environment and membership in the European Union have also contributed to the growth of the BPO market.

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.