Key regions: United Kingdom, United States, Brazil, Japan, Netherlands
Amidst the global growth of the Business Process Outsourcing (BPO) industry, Israel has emerged as a key player in the market.
Customer preferences: One of the primary reasons for the growth of the BPO market in Israel is the country's highly skilled workforce. Israeli professionals are known for their proficiency in technology, science, and engineering, making them an ideal fit for the BPO industry. Additionally, Israel's strategic location and cultural affinity with Western countries make it an attractive destination for BPO services.
Trends in the market: The BPO market in Israel is experiencing a significant shift towards more complex and specialized services. While traditional BPO services such as customer support and data entry still dominate the market, there is an increasing demand for higher value-added services such as software development, cybersecurity, and digital marketing. This trend is driven by the growing need for businesses to adopt new technologies and digital solutions to remain competitive in the global market.
Local special circumstances: Israel's unique geopolitical situation has also contributed to the growth of the BPO industry in the country. The ongoing conflict with neighboring countries has led to a significant investment in defense and security-related technologies, which has created a pool of highly skilled professionals in these areas. This, in turn, has led to the emergence of specialized BPO services in the defense and security sectors, further fueling the growth of the industry.
Underlying macroeconomic factors: Israel's strong economy and supportive government policies have also played a significant role in the growth of the BPO industry. The country has a well-developed technology infrastructure, including high-speed internet and advanced telecommunications systems, which make it an ideal location for BPO services. Additionally, the Israeli government has implemented various policies to encourage foreign investment in the country, including tax incentives and streamlined visa procedures for foreign workers. This has led to a growing number of international BPO companies setting up operations in Israel, further boosting the industry's growth.
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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