Business Process Outsourcing - Kenya

Kenya

Revenue in the Business Process Outsourcing market is projected to reach US$254.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.15%, resulting in a market volume of US$343.00m by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$9.58 in 2024.
In global comparison, most revenue will be generated in the United States (US$146.30bn in 2024).

Key regions: United Kingdom, United States, Brazil, Japan, Netherlands

Market

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Analyst Opinion

Business Process Outsourcing (BPO) is a rapidly growing industry in Kenya, driven by a combination of factors such as cost efficiency, access to a large pool of skilled talent, and favorable government policies.

Customer preferences: Kenya has become an increasingly attractive destination for BPO services due to its highly skilled and English-speaking workforce. The country's strategic location also makes it an ideal hub for serving clients in Europe, the Middle East, and Africa. Additionally, Kenyan BPO providers offer a range of services, including customer support, data entry, accounting, and back-office operations, making it a one-stop-shop for businesses looking to outsource their non-core functions.

Trends in the market: The BPO market in Kenya is expected to continue its growth trajectory, driven by the increasing demand for cost-effective and high-quality services. In recent years, there has been a surge in the number of BPO providers in Kenya, with both local and international companies setting up operations in the country. This growth is expected to continue, with the market projected to expand in the coming years.

Local special circumstances: Kenya has a well-established ICT infrastructure, with a reliable and affordable internet connection, making it easier for BPO providers to set up and operate. The government has also played a crucial role in promoting the BPO sector by offering tax incentives, creating a favorable business environment, and investing in training programs to enhance the skills of the local workforce. Additionally, Kenya has a large pool of young and educated workers, which is ideal for BPO operations.

Underlying macroeconomic factors: The growth of the BPO industry in Kenya is also supported by the country's stable macroeconomic environment. Kenya has been experiencing steady economic growth over the years, with a GDP growth rate of 5.7% in 2019. The government has also implemented various economic reforms to attract foreign investment, which has contributed to the growth of the BPO sector. Additionally, Kenya's political stability has been a key factor in attracting foreign investors, as it provides a conducive environment for doing business. In conclusion, the BPO market in Kenya is poised for continued growth, driven by a combination of factors such as a skilled workforce, favorable government policies, and a stable macroeconomic environment. With the increasing demand for cost-effective and high-quality services, the BPO industry is expected to play a critical role in the country's economic development, creating job opportunities and contributing to the growth of other sectors.

Methodology

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.