UAE outsourcing sector revenue to hit $1bn by 2020

DUBAI / WAM

The outsourcing sector is an important pillar of the UAE’s economic diversification and among the fastest-growing sectors in the country with a compound annual growth rate (CAGR) of 11.2 percent, according to the ‘UAE Outsourcing Market Outlook 2016-2020’, a report by International Data Corporation (IDC).
The report estimates that operational management revenues of business process outsourcing (BPO) and cloud services in 2017 are at $876.9 million (AED3.2 billion), with projections to reach $976.1 million (AED3.58 billion) in 2018 and $1.195 billion (AED4.38 billion) in 2020.
IDC’s ‘UAE and Saudi Arabia BPO Market Size and Forecast, 2015-2021’ report points out that the spend on local business outsourcing has grown by 11.7 percent — from $324 million (AED1.19 billion) in 2016 to $363 million (AED1.33 billion) in 2017. The number is expected to hit $404 million (AED1.48 billion) in 2018 and be valued at $562.8 million (AED2 billion) by 2021.
The report notes that key customers of the local outsourcing market are from the banking, financial services, transport, communications, media, retail, and support industries. In terms of competencies, call centre services account for the largest share at 65 percent and are set to dominate the market for years to come.
Human resources rank second with 14 percent, followed by finance, accounting, and employment services that are slated for moderate growth, as companies continue to prefer handling these functions internally.
Ammar Al Malik, Executive Director of Dubai Internet City (DIC) and Dubai Outsource City (DOC), said, “For years now, the world has been moving away from traditional outsourcing, shared service models and business systems management. The UAE is now globally recognised as a thriving hub for business, an achievement which is aided by its rapid technical evolution and the ready availability of top talent.”
Dubai Outsource City is home to around 140 companies operating in the sector that serve the UAE and the wider region. The country’s strategic location at the crossroads between Europe, Africa, and Asia enables our business partners to meet the requirements of these diverse markets.