UAE’s outsourcing services market to hit $6.8bn in 2023; Report

UAE’s outsourcing services market to hit $6.8bn in 2023; Report

According to a new report by Boston Consulting Group (BCG), the total spending by UAE-based organizations on outsourcing services from local and offshore providers was estimated at over $4.8 billion in 2018 and is now expected to reach $6.8 billion this year with a compound annual growth rate (CAGR) of 7 percent.

The report said that the key growth contributing sectors include financial services, public sector, telecommunications, hospitality, and leisure.

For the study, BCG had collaborated with Forward Mena (previously known as Beirut Digital District Academy) to examine the growth of remote work ecosystems in six developing countries in the Middle East and North Africa (MENA): Lebanon, Jordan, Iraq, Egypt, Morocco, and Tunisia.

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

“As one of the key markets or demand “hot spots” for job outsourcing, the country is rising as a strategic hub where entities can easily outsource parts of their value chains and source-in talent from third parties, thus facilitating high growth overtime,” stated the BCG report in its report, titled “MENA Talent Map.”

As per the report, UAE is one of