Business Process Outsourcing - Tanzania

Revenue in the Business Process Outsourcing market is projected to reach US$172.40m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.64%, resulting in a market volume of US$261.00m by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$5.23 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

Amidst the rapid economic growth in Tanzania, the Business Process Outsourcing (BPO) market has been steadily developing.

Customer preferences: As an emerging market, Tanzania has a growing demand for outsourcing services, particularly in the areas of customer service, data entry, and telemarketing. Tanzanian businesses are looking to outsource their non-core activities to third-party service providers to reduce costs and improve efficiency. Additionally, global companies are increasingly looking to outsource to Tanzania, attracted by the country's low labor costs and the availability of a skilled workforce.

Trends in the market: One of the major trends in the Tanzanian BPO market is the growth of the IT-enabled services (ITES) sector. With the increasing use of technology in businesses, there is a growing demand for IT-related services such as software development, web design, and digital marketing. This has led to the emergence of several ITES companies in Tanzania, providing employment opportunities for the country's youth.Another trend in the Tanzanian BPO market is the increasing focus on quality and value-added services. Service providers are investing in training their employees and improving their processes to provide high-quality services to their clients. Additionally, there is a growing demand for value-added services such as analytics and business intelligence, which can help businesses make better decisions and improve their performance.

Local special circumstances: One of the unique features of the Tanzanian BPO market is the availability of a multilingual workforce. The country has over 120 ethnic groups, each with its own language, and many Tanzanians are fluent in English, Swahili, and other local languages. This makes Tanzania an attractive destination for companies looking to outsource their customer service and support functions in multiple languages.Another special circumstance is the government's support for the development of the BPO industry. The government has implemented policies and initiatives aimed at promoting the growth of the industry, such as tax incentives for BPO companies and the establishment of a BPO park in Dar es Salaam. These efforts have helped to create a conducive environment for the development of the industry.

Underlying macroeconomic factors: The Tanzanian BPO market is benefiting from the country's overall economic growth and stability. Tanzania has been one of the fastest-growing economies in Africa, with an average annual growth rate of 6-7% over the past decade. This has led to an increase in disposable income and a growing middle class, which in turn has created a demand for outsourcing services.Furthermore, Tanzania's strategic location and membership in the East African Community (EAC) make it an attractive destination for businesses looking to expand their operations in the region. The country has a well-developed transport and communication infrastructure, which facilitates the movement of goods and services across borders. This has helped to position Tanzania as a gateway to the East African market.In conclusion, the Tanzanian BPO market is developing due to the country's growing demand for outsourcing services, the emergence of the ITES sector, the focus on quality and value-added services, the availability of a multilingual workforce, the government's support for the industry, and the underlying macroeconomic factors such as economic growth and regional integration.

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.