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UAE’s outsourced services market to reach $6.8 billion by 2023

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Total spending by UAE-based organizations on outsourced services from local and offshore suppliers was estimated at over USD 4.8 billion in 2018 and is now expected to reach USD 6.8 billion this year, at a compound annual growth rate (CAGR) of 7%. The latest report from the Boston Consulting Group (BCG).

According to the report, the main growth contributing industries include financial services, public sector, telecommunications, hospitality and leisure.

In this study, BCG partnered with Forward Mena (formerly known as Beirut Digital District Academy) to examine the development of remote work ecosystems in six developing countries in the Middle East and North Africa (Mena): Lebanon, Jordan, Iraq, Egypt, Morocco, Tunisia.

Ranked 16th globally for the ease of doing business, the UAE is now the second-largest economy in the Arab world, with a 2020 gross domestic product (GDP) of approximately $360 billion.

As one of the main markets or demand “hotspots” for job outsourcing, the country is emerging as a strategic hub where entities can easily outsource parts of their value chain and bring in talent from third parties, contributing to high growth in overtime, BCG report report, titled “The MENA Talent Map”.

According to the report, the UAE is one of the largest talent suppliers in the GCC. It added that customer support, finance and accounting, human resources and KPO are the main jobs and job clusters offered in the UAE.

Dr. Leila Hoteit, Managing Director and Senior Partner at BCG, noted that the UAE is striving to diversify and secure its economy through its national and emirate-level agenda around emerging themes such as sustainable economic development, cutting-edge innovation, digital transformation, security, and advanced Science, technology and artificial intelligence.

“As the country adjusts to future initiatives, we expect the country’s diversification prospects to exceed expectations and establish the country as a well-rounded multi-industry hub,” Dr Hoteit noted.

She said three job clusters were highlighted to help drive the long-term strategy in terms of the country’s future economic prospects, which in turn bode well for strong growth potential in job outsourcing.

“These are infrastructure management services, such as cloud engineers and cybersecurity analysts; software and application development, including software engineers and application developers; and finally, data and artificial intelligence (AI), for data scientists and blockchain development staff,” she added.

BCG pointed out that in terms of job outsourcing services and talent acquisition, some key industries have mushroomed.

It added that, as outlined in the study, by far the most prominent were financial services, the public sector, hospitality, leisure and telecommunications.

Copyright 2022 Al Hilal Publishing and Marketing Group, courtesy of SyndiGate Media Inc. (Syndigate.info).

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