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Charting the Course: Strategies in the Evolving Landscape of APAC Outsourcing Services

Outsourcing December 1, 2023

Charting the Course: Strategies in the Evolving Landscape of APAC Outsourcing Services


The APAC region became a central hub for outsourcing services, driven by industrial growth, infrastructure development, and technological advancements.

  • Key sectors, including manufacturing, IT, telecom, healthcare, and BFSI, benefit from reliable outsourcing services in the region.
  • The APAC BPO market was valued at US$ 72.7 Bn in 2022 and is projected to reach US$ 185.1 Bn by 2032, growing at a CAGR of 9.8%.

  • The shift from customer service to customer experience highlights the adoption of advanced tech processes in outsourcing.

  • Outsourcing offers cost-effectiveness, a skilled workforce, and a favorable regulatory environment, attracting businesses seeking global solutions.
  • Focus areas include AI adoption for customer service, ML and automation for operational efficiency, and the popularity of cloud and 5G for scalability and innovation.

  • Read the report to learn more about vendor landscapes, locations, and key focus areas in the APAC outsourcing market.

    The Asia Pacific (APAC) region has emerged as a pivotal hub for outsourcing services, with growth and evolution due to the expanding industrial sector, infrastructure development, and technical improvements in developing countries. 

    The region’s appeal to businesses seeking outsourcing solutions is driven by factors such as cost-effectiveness, a skilled workforce, and a favorable regulatory environment. 

    APAC BPO Overview 

    The APAC BPO market size was valued at US$ 72.7 Bn in 2022 and is expected to reach US$ 185.1 Bn by 2032 growing at a CAGR of 9.8%. 

    Businesses opting for business process outsourcing can choose to delegate specific services or functions like payroll, IT, logistics, and legal services based on their unique needs. 

    Outsourcing brings potential benefits such as reduced labor costs and the elimination of overheads related to human resources and equipment. 

    Certain functions like training and recruitment demand extra time and effort. Consequently, some companies decide to outsource human resources services. 

    For instance, Accenture, a pioneer in this field, provides HR, finance, and accounting services. Their human resource services encompass workforce performance, recruitment, payroll, benefits and compensation, as well as other learning and employee services. 

    These services are extended to clients like Microsoft, General Motors, IBM, Goodyear, and more. 

    Key drivers of outsourcing to APAC include:

    1. Focus on efficiency, time savings, and cost cutting

    Outsourcing is cost-effective and it lets businesses ease their workload and focus on the most important parts of their business. 

    With the rise of digital technology, companies are moving away from traditional ways of doing business tasks to more tech-based methods like business process as a service (BPaaS). The cost in countries like Philippines and India are up to 60% less. 

    Outsourcing lets companies be more flexible with their workforce and saves them from the hassle and cost of hiring new employees. It also means companies don’t have to deal with the legal and recruitment expenses that come with hiring someone directly.

    2. Favor for cloud and its impact on automation

    Businesses must adapt to more intelligent, well-coordinated processes that consider clients, employees, suppliers, and business partners to stay relevant and keep growing. 

    Traditional ways of running operations and outsourcing business processes are transforming into smarter workflows through automation, Artificial Intelligence (AI), the Internet of Things (IoT), cloud computing, and other modern technologies. 

    Growth Trends in APAC Outsourcing Market 

    The business landscape is inevitably influenced by global shifts, encompassing changes in the labor force, consumer behavior, and demands.

    1. Key outsourcing businesses will witness the emergence of transformative models

    The APAC region, responsible for 80% of talent and business assets in the BPO industry, is anticipated to undergo a significant transformation. 

    The traditional approach of large-scale employment in a single location is expected to shift towards establishing local offices in several strategic locations, employing local talent. 

    This transformation facilitates heightened levels of executive management and supervision of critical functions. Additionally, this business model simplifies the assessment of IT skill shortages for organizations.

    2. Pivot from customer service to customer experience

    Businesses often turn to outsourcing to enhance their customer service. Customer experience involves implementing advanced and efficient tech processes that emphasize the value and importance of customers. 

    In the APAC region, outsourcing is recognized for its effective knowledge management processes. 

    Anticipated developments in this sector include a shift from direct voice communications to the implementation of valuable technological automation, including AI-driven bots, automated scheduling, and other innovative solutions.

    3. Talent shortages to maintain APAC Dominance

    APAC holds prominence, particularly in the IT sector. UK experiences a loss of US$ 8 Bn due to unfilled tech job vacancies. As the landscape of digital innovation expands, companies must maintain relevance in such competitive environments. 

    Given the substantial demand for IT professionals, it is anticipated that APAC will continue to lead in business outsourcing for years to come.

    4. Embracing enriched skill sets as the new norm

    Having a diverse range of skills is considered an asset. The more skills an employee possesses, especially when they align with their expertise, the more valuable they become to the company. 

    Enhanced skill sets are essential for organizations engaging in global activities. To meet the demands of globalization, companies will implement human resource training and education strategies. 

    Simultaneously, recruitment processes for outsourced industries will prioritize individuals who are willing to adapt to the rapid pace of technological advancements. 

    IT Focus Areas for APAC’s Outsourcing Market 

    Some of the prominent players in the APAC BPO market include Accenture, Infosys, HCL Technologies, CBRE Group, Wipro, Capgemini, TTEC Holdings, Amdocs, TCS, and IBM. 

    They are employing mergers, acquisitions, new launches, and product development to strengthen their position in the market. 

    R&D and innovation in their products and services can drive the industry’s growth including the following. 

    • Focus on AI: They will automate more tasks and will be used in customer service. There will be a demand for AI services.  Outsourcing providers will incorporate these services into their offerings alongside traditional IT solutions. 
    • Adoption of ML and automation: ML enables computers to learn without explicit programming and will find diverse applications within the realm of outsourcing and enhance the efficiency of operations and elevate service quality. 
    • Cloud and 5G advocacy: Cloud provides scalability and flexibility so organizations can innovate faster and compete effectively. With 5G, companies can create powerful IoT systems to help systems improve efficiency.  

    As per Draup’s analysis, here are some of the top focus areas:

    Focus Areas for APAC

    Draup conducted an analysis of the outsourcing market in the APAC region. The report has overview of vendors, locations like Hong Kong, South-east Asia, key vendor snapshot, key focus areas, and more. 

    Sales Intelligence platforms like Draup for Sales provides sales teams with insights into outsourcing, hiring trends, organization structures, market landscape, stakeholder traits, location insights, and more. 

    Sales teams can utilize this data to provide leads with personalized proposals that specifically address their challenges and align with their digital technology stack.

    Lead the future with sales intelligence. Get in touch with us today.