UAE talent-outsourcing will reach $6.8bn this year, according to a new report by Boston Consulting Group (BCG).
As one of the key markets for job outsourcing, the UAE is emerging as a strategic hub where firms can easily outsource parts of their value chains and source-in talent from third parties, thus facilitating high growth overtime.
Customer support, finance and accounting, human resources, and KPO are the major jobs and job clusters supplied by the UAE.
UAE talent outsourcing
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 $360bn in 2020.
According to the BCG report, in collaboration with Forward MENA, the total spending by UAE-based organisations on outsourcing services from local and offshore providers was estimated at more than $4.8bn in 2018 and is expected to reach $6.8bn in 2023, with a compound annual growth rate (CAGR) of approximately 7 percent.
The report, titled “MENA Talent Map”, found that the UAE is one of the largest suppliers of talent in the Gulf Cooperation Council (GCC).
In terms of the nation’s future economic outlook, three job clusters were highlighted to help drive long-term strategies, which in turn signal strong growth potential for job outsourcing.
These are:
- Infrastructure management services, including cloud engineers and cybersecurity analysts
- Software and applications development, including software engineers and app developers
- Data and artificial intelligence (AI), including data scientists and blockchain developers
Dr. Leila Hoteit, Managing Director and Senior Partner, BCG, said: “The UAE is striving to diversify its economy with its national and Emirate-level agendas revolving around emerging themes of sustainable economic development, cutting-edge innovation, digital transformation, safety and security, and advanced science, technology and artificial intelligence.
“With the country calibrating on future-forward initiatives, we expect the country diversification outlook to exceed expectations and ground the nation as a fully rounded hub across industries”.
When it comes to spending on job outsourcing services and sourcing-in talent, certain key industries spring up.
As outlined in the study, the most prominent by far are financial services, public sector, hospitality, leisure and telecommunications.
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