Business Process Outsourcing - Portugal

Portugal

In 2024, the projected revenue in the Business Process Outsourcing market in Portugal is expected to reach US$0.76bn.
Looking ahead, the market is expected to demonstrate an annual growth rate of 4.12% (CAGR 2024-2029), resulting in a market volume of US$0.93bn by 2029.
Additionally, the average Spend per Employee in the Business Process Outsourcing market is projected to reach US$139.80 in 2024.
When compared globally, United States is anticipated to generate the highest revenue in the market, reaching US$146.30bn in 2024.
Portugal's strategic location and language skills make it an attractive destination for European companies seeking business process outsourcing in the IT services market.

Key regions: China, Netherlands, Japan, Brazil, Germany

Market

Region

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Currency

Analyst Opinion

Portugal, a country located in southwestern Europe, has been experiencing a significant growth in the Business Process Outsourcing (BPO) market in recent years.

Customer preferences: One of the primary reasons for the growth in the BPO market in Portugal is the increasing demand for cost-effective solutions by businesses. Many companies are looking to outsource their non-core business functions to reduce costs and focus on their core competencies. Additionally, the availability of a skilled workforce with proficiency in languages such as English, French, and Spanish, makes Portugal an attractive destination for BPO services.

Trends in the market: The BPO market in Portugal has been witnessing a shift towards more value-added services such as knowledge process outsourcing (KPO) and legal process outsourcing (LPO). This shift is driven by the increasing demand for high-skilled services such as financial analysis, research and development, and legal documentation. Moreover, the adoption of new technologies such as artificial intelligence, machine learning, and automation has led to the emergence of new service offerings in the market. These technologies are being used to enhance the efficiency and effectiveness of BPO services, thereby increasing their demand.

Local special circumstances: Portugal has a strategic location that makes it an ideal destination for outsourcing services. Its proximity to Europe, Africa, and the Americas makes it a hub for international businesses. Additionally, the country has a stable political and economic environment, which provides a favorable business climate for BPO companies. Furthermore, the Portuguese government has been implementing policies to promote the growth of the BPO industry, such as tax incentives and subsidies.

Underlying macroeconomic factors: The growth of the BPO market in Portugal is also driven by the country's economic development. Portugal has been experiencing steady economic growth in recent years, which has led to an increase in the number of businesses operating in the country. This growth has created a demand for BPO services, particularly in the areas of finance, accounting, and customer service. Additionally, the country's membership in the European Union has facilitated the growth of the BPO industry by providing access to a larger market and promoting the free movement of goods and services. In conclusion, the BPO market in Portugal is expected to continue its growth trajectory in the coming years. The country's strategic location, skilled workforce, favorable business climate, and government support are expected to attract more businesses to outsource their non-core functions to Portugal. Additionally, the adoption of new technologies and the shift towards more value-added services are expected to further fuel the growth of the BPO industry in Portugal.

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.