Key regions: China, Netherlands, Japan, Brazil, Germany
The Business Process Outsourcing market in GCC has been steadily growing over the years, with the region becoming an increasingly attractive destination for outsourcing services.
Customer preferences: One of the main reasons for this growth is the increasing demand for cost-effective solutions by businesses in the region. Companies are looking to reduce costs and improve efficiency, and outsourcing has become an attractive option. Additionally, the region’s highly skilled workforce and advanced technological infrastructure make it an ideal location for outsourcing services.
Trends in the market: The UAE and Saudi Arabia are the largest markets for outsourcing in the GCC region, with the majority of demand coming from the finance and accounting sector. The outsourcing market in the UAE is expected to continue to grow, driven by the government’s initiatives to diversify the economy and attract foreign investment. Saudi Arabia is also expected to see significant growth in the outsourcing market, with the government’s Vision 2030 plan focusing on developing non-oil sectors and increasing employment opportunities.
Local special circumstances: One of the unique aspects of the outsourcing market in the GCC region is the presence of free zones, which offer a range of incentives to companies looking to set up operations in the region. These free zones provide companies with tax exemptions, 100% foreign ownership, and streamlined business registration processes, making it easier for companies to establish a presence in the region.
Underlying macroeconomic factors: The GCC region has a favorable business environment, with a stable political and economic climate, as well as a strong legal and regulatory framework. Additionally, the region has a young and growing population, with a high level of education and a strong work ethic. This has led to a highly skilled workforce that is well-equipped to meet the demands of the outsourcing market.In conclusion, the Business Process Outsourcing market in GCC is expected to continue to grow, driven by the region’s favorable business environment, skilled workforce, and advanced technological infrastructure. With the increasing demand for cost-effective solutions, outsourcing is becoming an increasingly attractive option for businesses in 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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