TOKYO: Business process outsourcing (BPO) industry in Pakistan has made significant progress in recent years, but it needs to overcome multiple challenges such as infrastructure development and technology upgrades to realise its full potential.
The industry has emerged as a key player in the global outsourcing market, however, Pakistan still lags behind India, which is one of the largest BPO markets in the world, accounting for over half of the global outsourcing market, and employing around 4.3 million people.
According to a report by the Pakistan Software Export Board, Pakistan's BPO industry, including call center services, generated approximately $2.1 billion in revenue during the fiscal year 2020-2021. In comparison, the Indian BPO industry was estimated to be worth around $38 billion during the same period, according to a report by the National Association of Software and Services Companies.
Despite its smaller size, Pakistan's BPO industry has several advantages that can help it compete globally. They include a highly skilled workforce, a large English-speaking population, and a growing pool of young, tech-savvy talent. Pakistan's strategic location also makes it an ideal destination for outsourcing services from the Middle East, Europe, and other regions.
However, in order to fully realize its potential, Pakistan's BPO industry needs to overcome several challenges, including infrastructure development, technology upgrades, and a supportive regulatory environment that encourages foreign investment and supports local startups. Additionally, the industry needs to focus on building strong partnerships with global BPO companies and establishing a reputation for high-quality, reliable services.
Overall, while Pakistan's BPO industry may be smaller than India's, it has significant potential for growth and competitiveness on a global scale. Pakistan's booming BPO industry warrants serious attention from the government, and it is time for policymakers to take action and support the industry's growth.