Business Process Outsourcing - Southern Asia

Revenue in the Business Process Outsourcing market is projected to reach US$8.99bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.38%, resulting in a market volume of US$13.45bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$12.41 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 Business Process Outsourcing (BPO) market in Southern Asia has been growing at a steady pace in recent years, driven by a combination of factors such as cost-effectiveness, skilled workforce, and technological advancements.

Customer preferences: One of the primary reasons for the growth of the BPO market in Southern Asia is the customer preference for cost-effective solutions. Many companies in developed countries are outsourcing their business processes to countries like India, the Philippines, and Sri Lanka to reduce their operational costs. Additionally, the region's skilled workforce is another factor that attracts businesses to outsource their processes.

Trends in the market: India has emerged as the leading destination for BPO services in Southern Asia, thanks to its large pool of skilled professionals and cost-effective solutions. The country has been witnessing a shift towards non-voice and high-end services, such as analytics, legal process outsourcing, and research and development. On the other hand, the Philippines has been focusing on voice-based services, particularly in the call center and customer service domains. Sri Lanka, with its highly skilled workforce and strategic location, has been attracting businesses looking for niche services such as finance and accounting.

Local special circumstances: The BPO market in Southern Asia is highly competitive, with countries vying for a larger share of the pie. To stay ahead of the competition, many countries in the region have been focusing on improving their infrastructure, regulatory frameworks, and business-friendly policies. Additionally, the COVID-19 pandemic has accelerated the shift towards remote work, which has led to an increased demand for BPO services in the region.

Underlying macroeconomic factors: The BPO market in Southern Asia is closely linked to the region's macroeconomic factors, such as GDP growth, inflation rates, and government policies. For instance, a stable political environment and a favorable business climate can attract foreign investment, which can boost the BPO market. Similarly, a skilled workforce and technological advancements can help countries in the region offer cutting-edge services to their clients. On the other hand, unfavorable economic conditions, such as high inflation rates and political instability, can negatively impact the BPO market.

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.