Key regions: United Kingdom, United States, Brazil, Japan, Netherlands
The Business Process Outsourcing market in Eastern Africa has been experiencing a steady growth in recent years.
Customer preferences: One of the major reasons for the growth of the BPO market in Eastern Africa is the increasing demand for cost-effective services by businesses worldwide. Companies are looking to outsource their non-core business processes to third-party service providers in order to reduce operational costs and increase efficiency. Additionally, the availability of a large pool of skilled and English-speaking workforce in the region has made it an attractive destination for outsourcing services.
Trends in the market: Kenya has emerged as a key player in the BPO market in Eastern Africa due to its favorable business environment, supportive government policies, and availability of a large pool of skilled workers. The country has witnessed a growth in the number of BPO companies setting up operations in the country, with a focus on providing services such as customer support, data entry, and content moderation.Uganda is also emerging as a destination for BPO services, with a focus on providing services such as data entry, transcription, and content moderation. The country has a large pool of young and educated workers who are proficient in English, making it an attractive destination for outsourcing services.
Local special circumstances: However, the BPO market in Eastern Africa is not without its challenges. One of the major challenges faced by the industry is the lack of infrastructure, such as reliable electricity and internet connectivity, which can impact the quality and efficiency of services provided. Additionally, the industry faces competition from other outsourcing destinations such as India and the Philippines, which have a more established BPO industry.
Underlying macroeconomic factors: Despite these challenges, the BPO market in Eastern Africa is expected to continue to grow in the coming years. The region has seen a growth in the number of startups and small and medium-sized enterprises, which are expected to drive demand for outsourcing services. Additionally, the supportive government policies and incentives for the industry, such as tax breaks and investment in infrastructure, are expected to attract more companies to 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.
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