WHAT IS BUSINESS PROCESS OUTSOURCING (BPO)

BPO is the abbreviation for business process outsourcing, which refers to when companies outsource business processes to a thirdparty (external) company. The primary goal is to cut costs, free up time, and focus on core aspects of the business. Two types of BPO are front-office and back-office. Back-office BPO entails the internal aspects of a business, such as payroll, inventory purchasing, and billing. Front-office BPO focuses on activities external to the company, such as marketing and customer service.

1

Global Spending

Global businesses spent over $700 billion on outsourcing in 2022

2

IT Outsourcing Growth

IT outsourcing alone is expected to reach $519 billion in 2023, a 22% increase from the previous year.

3

BPO Expansion

The global BPO market currently stands at $307 billion

BPO & OUTSOURCE

USA

BPO IN SAUDI ARABIA

the outsourcing market in Saudi Arabia is expected to grow significantly, with total spending on outsourced services projects to reach $5.7 billion by 2027, Additionally, over 90% of adults in Saudi Arabia percevie good opportunities to start a business and feel confident in their skills and knowledge to do so

WHY BPO?

BENEFITS 0F BPO

37%

of small businesses outsource at least one business process

15%

According to the International Organization for Standardization (ISO), outsourcing can help companies reduce an average of 15 % of their costs

57%

of companies use business process outsourcing to concentrate on core issues, operations, and activities (Statista, 2021).

54%

of businesses employ at least one third-party support staff to communicate with consumers (Fortunly, 2021).

40%

more than 40% of banking and financial institution support desk employment is outsourced (Deloitte,2021)

83%

of small businesses plan to keep or increase their BPO budget in 2023. (Clutch, 2023)

BPO SERVICES

Legal	Customer Support	Human Resources	IT and Accounting	Manufacturing and Supply chain	Digital Marketing
64%	24%	24%	37%	48%	34%

Human Resources

Human Resources (HR) is an integral part of any company - especially as your business begins to grow

Digital/Content Marketing

This is probably one of the most commonly outsourced services today and is also one of the most important, especially if you feature in eCommerce

Information Technology

We live in the digital age — so it stands to reason that the demand for information technology services is growing at an exponential rate.

Accounting

Accounting is probably one of the most commonly outsourced services. From tax consultations to financial planning and day-to-day bookkeeping

Legal Services

The market for outsourcing paralegal services has shown significant growth recently, with the global legal process outsourcing market expanding from $11.76 billion in 2022 to $14.81 billion in 2023. This sector is projected to grow to $38.13 billion by 2027, illustrating a robust compound annual growth rate (CAGR) of approximately 26.7%.

BPO VS IN- HOUSE

BPO	IN- HOUSE
Cost Saving: Significant reduction in overhead.	Higher Cost: In-house hiring and infrastructure are expensive.
Access to Experts: Immediate access to top-tier talents globally.	Limited Expertise: Difficult to find talent locally or afford continuous training.
Faster Time to Market: Accelerates development processes.	Slow Growth: Companies without outsources support may lag in technology and innovation.
Scalability: Businesses can scale resources up or down as needed.

References

[1] KV Research. KBV Research, 2024. Available at: https://www.kbvresearch.com/ (Accessed 21 October 2024).

[2] BPO Market Size Statistics. Genius, 2024. Available at: https://joingenius.com/statistics/bpo-market-size/ (Accessed 21 October 2024).

[3] Outsourcing Statistics and Reports in 2023. CustomerThink, 2023. Available at: https://customerthink.com/outsourcing-statistics-reports-in-2023/ (Accessed 21 October 2024).

[4] Saudi Arabia’s BPO Growth Highlights. Arab News, 2023. Available at: https://www.arabnews.com/node/2282976/business-economy (Accessed 21 October 2024).

[5] Top Outsourcing Statistics of 2024. Exploding Topics, 2024. Available at: https://explodingtopics.com/blog/outsourcing-stats (Accessed 21 October 2024).

[6] BPO Industry Insights and Statistics. MyShortlister, 2024. Available at: https://www.myshortlister.com/insights/bpo-statistics (Accessed 21 October 2024)