Business Process Outsourcing - Southeast Asia

Revenue in the Business Process Outsourcing market is projected to reach US$8.88bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.18%, resulting in a market volume of US$11.98bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$25.56 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 demand for Business Process Outsourcing (BPO) services in Southeast Asia has been steadily increasing in recent years.

Customer preferences: Many companies in developed countries are choosing to outsource their non-core business processes to Southeast Asian countries due to the cost savings. Additionally, Southeast Asian countries have a large pool of English-speaking talent, making it an attractive destination for English-language customer service outsourcing.

Trends in the market: The Philippines has emerged as a major player in the BPO market, with its strong English-language skills and relatively low labor costs. The country's BPO industry has seen significant growth in recent years, particularly in the areas of call center services and back-office operations. Vietnam is also beginning to emerge as a strong contender in the BPO market, with its young and highly skilled workforce and competitive labor costs.

Local special circumstances: Indonesia, with its large population of over 270 million people, has a rapidly growing middle class that is driving demand for BPO services. The country's BPO industry is focused on providing services to the domestic market, particularly in the areas of finance and accounting, IT support, and customer service.

Underlying macroeconomic factors: The growth of the BPO market in Southeast Asia can be attributed to several underlying macroeconomic factors, including favorable government policies, a young and highly skilled workforce, and a low cost of living. Additionally, the region's close proximity to major markets such as China and India makes it an attractive destination for companies looking to expand their operations in the Asia-Pacific region.

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.