Business Process Outsourcing - Finland

Revenue in the Business Process Outsourcing market is projected to reach US$2.78bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.69%, resulting in a market volume of US$3.33bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$963.50 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 Business Process Outsourcing (BPO) market in Finland has been steadily growing in recent years, with several factors contributing to this trend.

Customer preferences: Finnish companies are increasingly turning to BPO providers to outsource non-core business functions such as finance and accounting, HR, and customer service. This allows them to focus on their core competencies and improve overall efficiency. Additionally, many Finnish companies are looking to expand their operations globally, and BPO providers can offer valuable support in areas such as language translation and cultural adaptation.

Trends in the market: One trend in the Finnish BPO market is the increasing use of automation and artificial intelligence (AI) to streamline processes and reduce costs. This has led to a shift in the types of services offered by BPO providers, with a growing focus on data analytics, machine learning, and robotic process automation (RPA). Another trend is the rise of nearshoring, as Finnish companies look to outsource to nearby countries such as Estonia and Latvia, which offer lower costs and similar cultural and linguistic backgrounds.

Local special circumstances: Finland's highly skilled workforce and advanced technological infrastructure make it an attractive location for BPO providers. Additionally, the country's strong commitment to data privacy and security regulations gives it an advantage over other locations in terms of data protection. However, the relatively high cost of labor in Finland means that BPO providers must offer specialized services and expertise to justify their prices.

Underlying macroeconomic factors: The growth of the Finnish BPO market is closely tied to the country's overall economic performance. As the Finnish economy continues to recover from the global financial crisis, companies are investing more in outsourcing to improve efficiency and reduce costs. Additionally, the country's aging population and declining birth rate have led to a shortage of skilled workers in certain industries, making outsourcing an attractive option for companies looking to fill these gaps. Finally, Finland's location within the European Union (EU) and its membership in the Eurozone make it an attractive location for companies looking to expand their operations within the EU.

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.