Business Process Outsourcing - Egypt

Revenue in the Business Process Outsourcing market is projected to reach US$455.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 11.34%, resulting in a market volume of US$779.20m by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$13.76 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

Egypt, a country known for its rich cultural heritage, is also emerging as a significant player in the Business Process Outsourcing (BPO) industry.

Customer preferences: Egypt's strategic location, low labor costs, and a large pool of educated and skilled workforce have attracted multinational companies to set up their BPO operations in the country. The Egyptian government has also been proactive in promoting the BPO industry by providing tax incentives and infrastructure support to these companies.

Trends in the market: One of the significant trends in the BPO market in Egypt is the increasing demand for knowledge process outsourcing (KPO) services, such as research and analytics, engineering and design, and legal services. This demand is driven by the availability of a highly skilled workforce in the country. Another trend is the growing adoption of digital technologies, such as artificial intelligence and robotic process automation, to improve operational efficiency and reduce costs.

Local special circumstances: Egypt's political stability and favorable business environment have also contributed to the growth of the BPO industry in the country. The government's efforts to modernize the economy and attract foreign investment have created a conducive environment for multinational companies to set up their operations in the country. Moreover, the country's rich cultural heritage and tourist attractions have also contributed to the growth of the BPO industry, particularly in the areas of customer service and hospitality.

Underlying macroeconomic factors: The BPO industry in Egypt is expected to continue its growth trajectory in the coming years, driven by favorable macroeconomic factors such as a young and growing population, a large pool of skilled labor, and a strategic location that allows easy access to both European and African markets. The government's ongoing efforts to modernize the economy and improve the business environment are also expected to attract more foreign investment into the country. However, the industry may face challenges such as rising labor costs and increasing competition from other emerging markets.

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.