Saudi Arabia to Reach USD5.7B in Job Outsourcing by 2027: BCG Report

(MENAFN) According to a recent report by the Boston Consulting Group (BCG) in collaboration with Forward MENA, businesses in Saudi Arabia are expected to spend $5.7 billion on outsourcing services by the end of 2027. This is due to a Compound Annual Growth Rate (CAGR) of 10 percent, which is indicative of the Kingdom's emergence as a leading "hot spot" for job outsourcing. Saudi Arabia is now being viewed as a strategic hub where businesses can easily outsource parts of their value chains and source-in talent from third parties in order to boost growth and efficiency.

The report identifies key growth sectors in this area, including financial services, manufacturing, and telecommunications. The Kingdom has set ambitious targets for itself, as reflected in its Vision 2030, which includes 11 Vision Realization Programs and large-scale transformation projects such as NEOM, Qiddiya, and Diriyah Gate. These projects are expected to create vast outsourcing opportunities in the years to come.

Leila Hoteit, Managing Director and Senior Partner at BCG, notes that Saudi Arabia's strengths and capabilities are being transformed into enabling tools for a fully diversified future. She believes that the country's long-term goals and expectations are achievable, and that the Kingdom is well on its way to becoming a leading outsourcing destination.

The report further reveals that total spending by Saudi Arabia-based organizations on outsourcing services from local and offshore providers was estimated at over USD2.3 billion in 2018. This represents a significant increase over previous years, and is indicative of the growing trend towards outsourcing as a means of achieving business goals and objectives.

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