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Key regions: United Kingdom, United States, Brazil, Japan, Netherlands
The Business Process Outsourcing (BPO) market in Eastern Asia has been experiencing steady growth in recent years. This region is home to some of the largest and most dynamic economies in the world, including China, Japan, and South Korea. The BPO industry in this region has been driven by a combination of customer preferences, local special circumstances, and underlying macroeconomic factors.
Customer preferences: One of the main drivers of the BPO market in Eastern Asia is customer preferences. Many companies in this region are looking for ways to reduce costs and increase efficiency, and outsourcing certain business processes has become a popular strategy. In addition, many businesses in this region are looking to expand their global reach, and outsourcing can help them achieve this goal.
Trends in the market: The BPO market in Eastern Asia has been characterized by several key trends in recent years. One of the most significant trends is the rise of China as a major player in the industry. China has become a hub for BPO services, particularly in areas such as IT and customer service. Another trend is the increasing focus on automation and artificial intelligence. Many BPO providers in this region are investing in these technologies to increase efficiency and reduce costs. Finally, there has been a growing trend towards nearshoring, with many companies in Japan and South Korea outsourcing to nearby countries such as the Philippines and Vietnam.
Local special circumstances: There are several local special circumstances that have contributed to the growth of the BPO market in Eastern Asia. One of the most significant is the region's large and highly educated workforce. Many countries in this region have invested heavily in education and training, creating a pool of talented workers who are well-suited to BPO work. In addition, many governments in this region have been supportive of the BPO industry, offering incentives and tax breaks to companies that outsource certain processes.
Underlying macroeconomic factors: Finally, there are several underlying macroeconomic factors that have contributed to the growth of the BPO market in Eastern Asia. One of the most significant is the region's strong economic growth, which has created a large and growing middle class. This has led to an increase in demand for services such as customer support and IT outsourcing. In addition, the region's favorable business environment, including low taxes and favorable regulations, has made it an attractive location for BPO providers. Finally, the region's strategic location, at the crossroads of several major trading routes, has made it an ideal location for companies looking to expand their global reach.
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.Mon - Fri, 9am - 6pm (EST)
Mon - Fri, 9am - 5pm (SGT)
Mon - Fri, 10:00am - 6:00pm (JST)
Mon - Fri, 9:30am - 5pm (GMT)
Mon - Fri, 9am - 6pm (EST)