Islamabad, Jan 22: Pakistan’s Business Process Outsourcing (BPO) industry is poised for a dynamic transformation, with projections indicating a substantial increase in market volume to $1.15 billion by 2029.
As delineated by the Pakistan Software Exports Board (PSEB), the industry is on track to achieve a commendable annual growth rate (CAGR) of 6.23% from 2024 to 2029. Starting from a strong base of $0.85 billion in 2024, the sector faces certain challenges yet holds immense potential due to strategic governmental and private initiatives.
The landscape of BPO in Pakistan is diverse, with both homegrown companies and international collaborations making their mark. The majority of BPO firms are small-scale, focusing solely on outsourcing services with staff strengths ranging from 5 to 25 employees.
However, some of the larger entities integrate BPO operations within broader IT corporations, helping leverage synergies between different segments of the tech industry. The government’s forward-looking strategy aims to bolster not just the BPO domain but also the Knowledge Process Outsourcing (KPO) sector, enhancing both their scopes and scales.
Kearney’s 2023 Global Services Location Index identifies Pakistan as a highly cost-effective location for IT services. The International Labor Organization (ILO) ranks it as a leading provider of digital labor in data entry, multimedia, professional services, and software development.
Pakistan has over half a million English-speaking IT professionals under 29, positioning it well to invest in advanced training programs for emerging technologies vital for global markets.
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Recent statistics highlight the IT and telecom sectors’ rapid growth, with exports rising by 33.84% at the start of fiscal year 2024-25. Computer services grew by 44.14%, software consultancy by 47.38%, and the call center segment showed strong growth, reflecting broader improvements in IT.
Looking ahead, the BPO Sector Strategy for 2023-2027, crafted by the Ministry of Commerce and the Trade Development Authority of Pakistan, outlines critical areas for development.
This includes implementing tax reforms, fostering public-private partnerships, and promoting talent development initiatives to boost sector growth.
Additionally, the strategy emphasizes the necessity of high-quality infrastructure, improved human resource practices to enhance retention, and policies supportive of remote and hybrid working arrangements.
As Pakistan continues to invest in elevating the quality of its BPO services, including integration of AI technologies and expanding into KPO, it seeks not only to diversify its offerings but also to cement its position as a leading BPO hub in Asia.
Pakistan will enhance its global competitiveness by focusing on these strategic objectives. This will attract more international investors and boost economic growth. The pivot will drive the BPO sector’s growth and ensure its relevance in the international market in the coming years.
