Business Process Outsourcing - South America

South America

Revenue in the Business Process Outsourcing market is projected to reach US$10.27bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.84%, resulting in a market volume of US$13.01bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$49.72 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

The popularity of Business Process Outsourcing (BPO) services in South America has been on the rise in recent years.

Customer preferences: Clients in South America are increasingly looking for BPO services that offer cost-effective and efficient solutions. They are also looking for providers that can offer services in multiple languages to cater to the diverse linguistic needs of the region.

Trends in the market: Brazil and Colombia are the two largest markets for BPO services in South America. In Brazil, the demand for BPO services is being driven by the country's large and growing middle class, which is creating a need for more customer service and support. In Colombia, the growth of the BPO market is being fueled by the government's efforts to attract foreign investment and create more jobs in the country.

Local special circumstances: One of the key challenges facing the BPO industry in South America is the shortage of skilled labor. This has led to higher labor costs and increased competition for talent among BPO providers. To address this issue, some providers are investing in training programs to develop the skills of their employees.

Underlying macroeconomic factors: The growth of the BPO industry in South America is being driven by a number of macroeconomic factors. These include the region's growing middle class, which is creating more demand for customer service and support, as well as the region's favorable business environment and government incentives for foreign investment. Additionally, the availability of advanced technology and telecommunications infrastructure is making it easier for BPO providers to offer their services to clients around the world.

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.