Business Process Outsourcing - Pakistan

Pakistan

Revenue in the Business Process Outsourcing market is projected to reach US$0.85bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.23%, resulting in a market volume of US$1.15bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$10.29 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

Region

Region comparison

Currency

Analyst Opinion

Pakistan has been steadily growing as a hub for Business Process Outsourcing (BPO) services in recent years. With a large and educated workforce, a favorable time zone, and lower labor costs compared to other countries, Pakistan is becoming an increasingly attractive destination for BPO services.

Customer preferences: Customers are increasingly looking for cost-effective solutions to their business needs, which is driving the demand for BPO services in Pakistan. Additionally, the country's strategic location and favorable time zone make it an ideal destination for companies looking to outsource their customer service and technical support operations.

Trends in the market: One of the key trends in the BPO market in Pakistan is the growth of the IT-enabled services (ITES) sector. This sector includes services such as software development, data management, and digital marketing, which are becoming increasingly important for businesses looking to stay competitive in the digital age. Another trend is the rise of niche BPO services, such as legal process outsourcing and medical transcription, which are gaining traction in the Pakistani market.

Local special circumstances: Pakistan's BPO market is unique in that it has a large pool of English-speaking professionals, which makes it an attractive destination for companies looking to outsource their operations to English-speaking countries. Additionally, the country has a large population of young people who are tech-savvy and eager to work in the BPO industry, which is driving the growth of the sector.

Underlying macroeconomic factors: Pakistan's economy is growing at a steady pace, which is creating new opportunities for businesses in the BPO sector. Additionally, the government has implemented a number of policies to support the growth of the IT sector, including tax incentives and subsidies for companies that invest in the sector. However, the country still faces challenges such as political instability and security concerns, which could impact the growth of the BPO sector in the long run.

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.