Business Process Outsourcing - MENA

Revenue in the Business Process Outsourcing market is projected to reach US$9.96bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.54%, resulting in a market volume of US$12.44bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$50.71 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 market in MENA has been experiencing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this development.

Customer preferences in the MENA region have played a crucial role in the growth of the Business Process Outsourcing market. Many companies in the region are increasingly outsourcing their non-core business functions to focus on their core competencies. This allows them to reduce costs, improve efficiency, and access specialized expertise.

Additionally, businesses in the region are seeking to leverage the benefits of technology and digitalization, which has further increased the demand for outsourcing services. Trends in the market have also contributed to the growth of the Business Process Outsourcing industry in MENA. One notable trend is the rise of knowledge process outsourcing (KPO) services.

As companies in the region strive to enhance their competitiveness, they are seeking more advanced and specialized outsourcing solutions. KPO services, which involve the outsourcing of high-value and knowledge-intensive processes, have gained popularity in the MENA region. This trend is driven by the availability of a highly skilled workforce and the increasing demand for complex services such as research and analytics.

Local special circumstances have also played a role in the development of the Business Process Outsourcing market in MENA. The region has a young and dynamic population, with a large pool of talented individuals who are fluent in multiple languages. This has made the region an attractive destination for outsourcing services, particularly in the areas of customer support and multilingual services.

Additionally, the MENA region has a strategic geographic location, which allows businesses to serve both local and international markets effectively. Underlying macroeconomic factors have also contributed to the growth of the Business Process Outsourcing market in MENA. The region has been experiencing economic diversification and transformation, with governments focusing on attracting foreign investment and promoting entrepreneurship.

This has created a favorable business environment for outsourcing companies, with supportive policies and incentives. Furthermore, the MENA region has witnessed a steady increase in foreign direct investment, which has spurred the growth of the outsourcing industry. In conclusion, the Business Process Outsourcing market in MENA is experiencing significant growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

As businesses in the region continue to seek cost-effective and efficient solutions, the demand for outsourcing services is expected to further increase.

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.