Business Process Outsourcing - Portugal

Revenue in the Business Process Outsourcing market is projected to reach US$764.30m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.09%, resulting in a market volume of US$933.80m by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$139.80 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

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.

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.