U.A.E. Business Process Outsourcing (BPO) market, By Outsourcing Type (Offshore, Nearshore, Onshore), Service (Voice Processing, Telemarketing Services, 3D Visualization Services, Image Editing Services, Virtual Staffing Services, and Others), Application (Talent and HR Services, Sales & Marketing, Finance & Accounting, Sourcing, Procurement & Supply Chain, Facilities & Administration, Customer Care, Training, Product Engineering, and Others), Deployment Mode (Cloud, On Premise), Organization Size (Large Enterprises, SME’s), Ownership (Captive, Third Party), Outsourcing Approach (Best-Shore, Bundled Services, Contract Based, and Fee for Service), End User (BFSI, IT & Telecommunication, Healthcare, Manufacturing, Retail & E-Commerce, Government & Defense, Transportation & Logistics, Travel & Hospitality, Education, Energy & Utilities, and Others), Countries (Abu Dhabi, Dubai, Sharjah, Umm Al-Quwain, Fujairah, Ajman, Ra’s Al-Khaimah, rest of U.A.E.) - Industry Trends and Forecast to 2031.
U.A.E. Business Process Outsourcing (BPO) Market Analysis and Insights
Business process outsourcing companies are always the first to adopt and implement new technologies or methods in their operations, which shows that they are very agile. Organizations must be prepared to adopt instant technological change, to be in the market. So, as companies are implementing and outsourcing to become agile for their survival, thus it is acting as a major factor driving the growth of the U.A.E. business process outsourcing (BPO) market. Process outsourcing or contracting has become an easy and cost-effective method used widely in today's digitization world. Besides cost, outsourcing also saves a lot of time and allows a business to engage its resources elsewhere to increase its productivity, acting as a driving factor for the market. The increased preference for cloud technology, AI, and other automation techniques are expected to drive the U.A.E. business process outsourcing (BPO) market. The exponential rise in data of enterprises will lead companies to get outsourcing services for managing and finding real-time insights from their data. This factor may drive the U.A.E. business process outsourcing (BPO) market.
However, rising data security concerns due to external hacks and internal security lapses and stringent government policies of different nations may act as major factors restraining the growth of the U.A.E. business process outsourcing (BPO) market. Using BPaaS to streamline multiple workflows by scheduling them in an automated manner is a major factor that might create an opportunity for the growth of the U.A.E. business process outsourcing (BPO) market. Also, the growing number of successful start-ups across the globe will adopt BPO services to save their overhead costs, which can create big opportunities for the U.A.E. business process outsourcing (BPO) market. BPO contact centers are particularly susceptible to a skills shortage due to the companies' multidisciplinary nature. A high attrition rate in the BPO industry is expected to challenge the market.
Business process outsourcing (BPO) providers are entering into partnerships and constantly developing and upgrading their products to keep them ahead in the market.
For instance,
- In January 2022, as per the global rental asset management software market analysis through 2031, the report provided an overview in which ALTECiSys was listed as a top manufacturer. The global leasing asset management software market is categorized by technology, product type, application, distribution channel, end-user, industry sector, and geography, providing valuable insights
- In January 2022, Concentrix Corporation won the award as Business Intelligence Group's (BIG) 2022 Innovation Awards. This helped the company to increase its brand value, and trust value among customers as the trust for the services offered increases
During the forecast period, manufacturers involved in the business process outsourcing (BPO) market likely benefit significantly from increased awareness of the advantages of business process outsourcing (BPO)s and investments in various organizations. Data Bridge Market Research analyses that U.A.E. business process outsourcing (BPO) market will grow at a CAGR of 7.6% during the forecast period of 2024 to 2031.
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Report Metric
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Details
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Base Year
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2022
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Forecast Period
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2024–2031
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Historic Years
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2021 (Customizable to 2016–2021)
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Quantitative Units
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Revenue in USD Million
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Segments Covered
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Outsourcing Type (Offshore, Nearshore and Onshore), Service (Voice Processing, Telemarketing Services, 3D Visualization Services, Image Editing Services, Virtual Staffing Services, and Others), Application (Talent and HR Services, Sales & Marketing, Finance & Accounting, Sourcing, Procurement & Supply Chain, Facilities & Administrations, Customer Care, Training, Product Engineering, and Others), Deployment Mode (Cloud, and On Premise), Organization Size (Large Enterprises, and SME’s), Ownership (Captive, and Third Party), Outsourcing Approach (Best-Shore, Bundled Services, Contract Based, Fee for Service), End User (BFSI, IT & Telecommunication, Healthcare, Manufacturing, Retail & E-Commerce, Government & Defense, Transportation & Logistics, Travel & Hospitality, Education, Energy & Utilities, and Others)
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Countries Covered
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Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al-Quwain, Fujairah, Ra's Al-Khaimah and rest of U.A.E.
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Market Players Covered
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IBM, Accenture, Capgemini, Infosys Limited, Tata Consultancy Services Limited, ADP, Inc., ALTECiSyS, AMDOCS, Cognizant, Concentrix Corporation, Genpact, HCL Technologies Limited, IBT, Intetics Inc., NCR Corporation, NTT DATA, Inc., Plaxonic Technologies, Protiviti Inc., Sodexo, TTEC, and Wipro Limited among others
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Market Definition
Business process outsourcing (BPO) is contracting or outsourcing a specific work process or process to an external service provider for the required function. The services can include payroll, accounting, telemarketing, data recording, social media marketing, customer support, and more. BPO can be done for non-core business activities such as recruiting, managing finance and payroll, supervising procurement, and providing training. Business process outsourcing can be provided in various domains, including human resources, sales & marketing, supply chain, finance & accounting, education & training, and payment. Outsourcing necessary processes such as recruiting, accounts payable, managing procurement, or various utility bill processing help take care of important yet repetitive tasks that need to be performed very frequently or daily and need to free your internal resources to focus on core competency. As organizations streamline and improve their services or products, they can gain business and scale up their operations, which then helps them to increase their revenue.
U.A.E. Business Process Outsourcing (BPO) Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:
Drivers
- Increasing need for Business Agility
In the 21st-century, every business is marked with the energy of constant dynamism. Business agility has the capability to sustain its maximum potential both its terms of profits and its employees amidst a dynamic external and internal environment. It enables organizations to innovate and deliver more effectively, thus turning market disruption into a competitive advantage, while thriving in complex environments
- Rising Customer Focus towards Enhanced Efficiency, Time Effectiveness, and Cost-Efficiency
Business process outsourcing has become an easy and very cost-effective practice that is used widely in today’s digitization world. It further enables the business owners to reduce the burden of work and concentrate on other core aspects of their operation. The ongoing digital revolution has made companies switch from traditional business process services (BPS) towards technological aspects such as business process as a service (BPaaS) in order to succeed. There is a huge difference in the wage/pay patterns of the western developed countries and the developing countries. The western work seems to be very costlier than the work offered in the eastern developing countries such as the Philippines, India, and Japan which has a difference of about 60%. BPO allows to gain flexibility in the workforce and avoid the need to hire. In addition to the legal obligations relating to the employment contract, the company does not have to bear any expenses related to the recruitment of an employee
- Growing Preference for Cloud Technology and Significance on Process Automation
Digital technologies have created new opportunities for business leaders. Traditional operations and business process outsourcing models are being reinvented into more intelligent workflows using automation, artificial intelligence, the internet of things (IoT), cloud, and other new technologies. Businesses must constantly evolve to more intelligent, fully orchestrated processes that take into account clients, employees, suppliers, and business partners alike in order to remain relevant and to continue their growth
Opportunities
- Focus on Multi-Workflow Scheduling of Business
Earlier, automated workflows were reserved only for the wealthy organizations that were willing to invest heavily in complex CRM and ERP systems. But, the advent of cloud technology has turned this concept on its head. As the technology transformed, people started leveraging its power to automate their complex workflow processes in order to achieve process integration. In recent years, BPO has dramatically expanded, as companies see the benefit in reducing costs, improving efficiency and customer service, and enabling high growth while working with limited resources
- Emergence of Digital Technologies namely AI, IOT and Cloud Computing
Cloud computing has turned out to be a major driving force for digital transformation across industries. Not only it provides unparalleled agility but also reduces operational and management overheads. Citing this, several governments and businesses are starting to leverage this technology and are slowly gaining popularity across several verticals. The potential has become so open that the notion of cloud being limited to only IT functions has completely changed. This is further integrated with other technologies such as artificial intelligence (AI), the internet of things (IoT), and edge computing among others
Restraints
- Growing Concerns Regarding Data Security and Privacy Concerns
Data security refers to the process of protecting digital data from unauthorized access and corruption throughout its lifecycle. To ensure this, various data security controls solutions such as authentication, access control, encryption, back-ups & recovery, data masking, and many more are present, still, and sometimes these solutions are not enough to prevent an attack on data security. And, in the past one and a half-decade, the attacks on data security have increased significantly. Various types of data security risks can arise as data tampering, data theft, and modifying user identities among others.
- Stringent Government Regulations
Business outsourcing is driven by market demand, businesses that are outsourcing in the U.A.E. economy help to increase the productivity of the business which accelerates the growth of profit and wages. This growth can be independent of the execution of costly laws and lawsuits. But legal and regulatory considerations sometimes affect the sourcing patterns of companies including their contracts with offshore suppliers, not just to achieve low cost. Organizations resort to external contracting or outsourcing as a means of cutting labour costs. Outsourcing abroad or offshoring, however, is relatively complex with major political overtones linked to the transfer of jobs. The interaction of diverse national business environments in such transnational relationships is a multi-layered process in which diverging legal, economic and social concerns arise. Offshore outsourcing type, now a popular corporate strategy that is used to a large extent by organizations in developed countries such as U.A.E, U.S., U.K., and many others.
Challenges
- Lack of Skilled Workforce and High Attrition Rate
Attrition and lack of skilled professionals are perhaps one of the biggest challenges faced by most business process outsourcing (BPO) companies. Attrition in the business process outsourcing (BPO) sector has terrible effects on the organization. The high attrition costs increase the costs to the organization considerably. The more people leave an organization or company, the more it drains on the company’s resources such as recruitment expenses, training, and orientation expenses, and time. The high attrition rate adversely affects the productivity of the organization.
- Frequent Disruption Affects Operational Efficiency of Business Process Outsourcing (BPO)
The aim of business process outsourcing (BPO) is to increase process efficiency, reduce costs and improve quality. As a rule, it has been proven that outsourcing business functions to third parties offer more cost advantages than relocating business functions internally. The main advantage of the business process outsourcing (BPO) industry is handling non-core activities of the business with cost-efficiency. However, the business process outsourcing (BPO) industry faces a lot of disruptions such as power outages, strikes, pandemics, or any national emergency while operating which might affect the overall efficiency of the business process outsourcing (BPO) organizations and its client as well.
Recent Developments
- In January 2022, Genpact acquired Hoodoo Digital to expand the experience business. This acquisition helped the company to increase its business operation capabilities through innovation and launching new products which accelerated the revenue growth by adding new customers
U.A.E. Business Process Outsourcing (BPO) Market Scope
The U.A.E. business process outsourcing (BPO) market is segmented into eight notable segments based on outsourcing type, service, application, deployment mode, organization size, ownership, outsourcing approach, sector, and end-user. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Outsourcing Type
- Offshore
- Onshore
- Nearshore
On the basis of outsourcing type, U.A.E. business process outsourcing market is segmented into offshore, onshore, and nearshore.
Service
- Voice Processing
- Telemarketing Services
- Image Editing Services
- Virtual Staffing Services
- 3D Visualization Services
- Others
On the basis of service, U.A.E. business process outsourcing market is segmented into voice processing, telemarketing services, image editing services, virtual staffing services, and 3D visualization services, and others.
Application
- Customer Care
- Finance and Accounting
- Talent and HR Services
- Sales and Marketing
- Sourcing, Procurement and Supply Chain
- Facilities and Administration
- Product Engineering
- Training
- Others
On the basis of application, U.A.E. business process outsourcing market is segmented into customer care, finance and accounting, talent and human resource services, sales and marketing, sourcing, procurement and supply chain, facilities and administration, product engineering, training, and others.
Deployment Mode
- Cloud
- On Premise
On the basis of deployment mode, U.A.E. business process outsourcing market is segmented cloud, and on premise
Organization Size
- Large Enterprises
- SMEs
On the basis of organization size, U.A.E. business process outsourcing market is segmented into large enterprises, and SMEs.
Ownership
- Captive
- Third Party
On the basis of ownership, U.A.E. business process outsourcing market is segmented into captive and third party.
Outsourcing Approach
- Contract Based
- Bundled Services
- Best-Shore
- Fee for Service
On the basis of outsourcing approach, U.A.E. business process outsourcing market is segmented into contract based, bundled services, best-shore, and fee for service.
End User
- IT and Telecommunication
- BFSI
- Manufacturing
- Healthcare
- Government & Defense
- Retail and E-Commerce
- Transportation and Logistics
- Travel and Hospitality
- Energy and Utilities
- Education
- Others
On the basis of end-user, U.A.E. business process outsourcing market is segmented into IT and telecommunication, BFSI, manufacturing, healthcare, government & defence, retail and e-commerce, transportation and logistics, travel and hospitality, energy and utilities, education, and others.
U.A.E. Business Process Outsourcing (BPO) Market Regional Analysis/Insights
U.A.E. business process outsourcing market is analysed and market size insights and trends are provided by outsourcing type, service, application, deployment mode, organization size, ownership, outsourcing approach, and end user.
The countries covered in U.A.E. business process outsourcing (BPO) market report are Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al-Quwain, Fujairah, Ra's Al-Khaimah and rest of U.A.E.
Dubai dominates region due to the market due to growing number of new businesses.
The region section of the report also provides individual market impacting factors and changes in regulations in the market domestically that impacts the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, disease epidemiology and import-export tariffs are some of the major pointers used to forecast the market scenario for individual countries. Also, presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of sales channels are considered while providing forecast analysis of the country data.
Competitive Landscape and U.A.E. Business Process Outsourcing (BPO) Market Share Analysis
U.A.E. business process outsourcing (BPO) market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, solution launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to U.A.E. business process outsourcing (BPO) market.
Some of the major players operating in U.A.E. business process outsourcing (BPO) market are Infosys Limited, Cognizant, Capgemini, Accenture and Genpact among others.
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