Business Process Outsourcing - Saudi Arabia

Saudi Arabia

Revenue in the Business Process Outsourcing market is projected to reach €0.55bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.03%, resulting in a market volume of €0.67bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach €33.20 in 2024.
In global comparison, most revenue will be generated in the United States (€135.70bn in 2024).

Key regions: United Kingdom, United States, Brazil, Japan, Netherlands

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Business Process Outsourcing (BPO) market in Saudi Arabia is experiencing significant growth due to various factors such as government initiatives, cost-effectiveness, and the availability of a skilled workforce.

Customer preferences: Saudi Arabia's BPO market has been driven by the growing preference for outsourcing non-core business functions. Companies in various sectors, including healthcare, finance, and telecommunications, are outsourcing their back-office operations to focus on their core competencies. Additionally, Saudi Arabian companies are increasingly outsourcing their customer service operations to improve customer satisfaction and reduce operational costs.

Trends in the market: One of the significant trends in the Saudi Arabian BPO market is the adoption of automation and artificial intelligence (AI) technologies. Many BPO providers are leveraging AI and automation to enhance the efficiency and accuracy of their services. Additionally, there is a growing trend towards nearshoring, where companies outsource their business processes to nearby countries, such as Egypt and Jordan, to take advantage of lower costs while maintaining proximity.

Local special circumstances: Saudi Arabia's Vision 2030 initiative aims to diversify the country's economy and reduce its dependence on oil. As part of this initiative, the government has been promoting the development of the BPO industry. The government has implemented various policies and initiatives to attract foreign investment in the BPO sector, such as tax incentives and streamlined business registration processes. Additionally, the country's large young population, with a high percentage of university graduates, provides a skilled workforce for the BPO industry.

Underlying macroeconomic factors: Saudi Arabia's BPO market growth is also driven by cost-effectiveness. The country's low cost of living and labor costs make it an attractive outsourcing destination for companies looking to reduce operational costs. Additionally, the country's strategic location provides easy access to various markets in the Middle East and North Africa region, making it an attractive hub for regional BPO operations. The country's stable political environment and robust infrastructure also contribute to the growth of the BPO market.

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.