Why is Outsourcing Essential for Start-ups In MENA?

Today, there is a surge of start-ups throughout the world, yearning to become successful. However, BPO companies in MENA can offer impactful resources and tools to these start-ups. With a market growth CAGR of 6.9% till 2029, BPOs are becoming essential for businesses globally.

Economically, MENA is a very suitable region for start-ups. It is a financially alluring destination for start-ups to establish themselves.

Let’s take a brief overview of outsourcing and later, we will discuss the importance of outsourcing services for start-ups in MENA with a sprinkle of some successful examples.

Outsourcing

Outsourcing is a way for businesses to hand over some of their non-core functionalities to those that specialize in those operations. These companies can be offshore or onshore.

Some of the main reasons for choosing these BPO companies are:

1. Low operating costs
2. Increased scalability in operations
3. Start-ups can focus on core operations
4. Improved efficiency
5. Equal footing with bigger businesses
6. Lesser execution time

Usually, BPO companies are employed for a better customer experience. According to Zippia, improved customer service alone can increase the company's revenue by 10-15%. Not only that, 42% of customers are willing to pay more when they received friendly customer service.

Apart from the basic customer service operations, BPO services can be employed for:

1. Bookkeeping
2. Data Entry
3. Human Resources
4. Digital Marketing
5. Directory Services

Outsourcing in MENA

With several options, choosing the right outsourcing partner can be a bit of a hassle and requires some research related to it. In MENA, many geographical locations can be suitable for choosing the service provider according to your wants and needs.

According to AT Kearney’s Global Services Location Index 2021, Egypt had the most successful BPO operations in MENA at 15^th position, whereas UAE and Turkey were ranked 25^th and 26^th respectively.

MENA: Investment and Progress

Compared to other regions, MENA has started offering lucrative opportunities quite early making it one of the top choices of many companies. MENA, particularly UAE, had acquired 95% of its eCommerce presence even before the COVID-19 pandemic. It was already adapting the eCommerce model of business with the rest of the world.

The governments of this geographic landscape are eagerly investing and encouraging investors to develop their business cases in their countries. The deployment of Amazon Web Services (AWS), 5G, and the workings of giants like Xerox, IBM Corp, Accenture, Capgemini, and Ericsson, are enough examples for businesses.

Future Trends:

Different market analyses have found positive trends for start-ups and businesses in MENA. Data Bridge has forecasted that by the year 2029, the BPO industry alone would be worth well above $20 billion, which has hastened the need for business agility, cloud technology, and AI, augmenting the market growth substantially.

The region offers the lowest global outsourcing rates averaging $25-90. New product or service outsourcing has taken up the most of BPO industry, leading with a 20.3% contribution. Let’s take a look at some successful examples relying on BPO.

• MindTales

Founded in 2020, this mental health start-up rose to success after developing its digital wellness and counseling application. With their focus on B2C and B2B operations, they saw a monthly 32% increase in app subscriptions and acquired BPO services for human contact for its subscribers. The app has seen positive responses even after having customer service outsourced, proving that its needs are being fulfilled for its 70,000-user base, give or take.

• Seez

A car-trading search engine and platform, Seez has become a well-established company among others since 2016 with a user base roughly touching the 2 million mark. This eCommerce platform also acquired outsourcing services for their customer demands and has spurred significant growth in 2021, with a 300% increase in their business. They have successfully raised $21 million and are looking for opportunities in Europe.

• Rabbit

A grocery delivery app launched last year in October, it has already raised $11 million. Their eCommerce grew 29% annually and their sales went up two to five-fold, all resting upon the credible shoulders of outsourcing companies.

• Mozare3

Unique in the space of apps and platforms, Mozare3 is an agri-fintech solution for farmers to help them get micro-loans and facilitate them in transactions. A fine series-A startup, it successfully reached 3000 farmers in Egypt and its outsourcing CX has managed to solidify this small userbase. They have high expectations of reaching 100,000 farmers by the end of 2023, showing complete trust in the outsourcing process.

The Right Decision

Making the right decision can seem like the hardest choice, especially with contract negotiations pertinent to BPO services. But MENA provides several top-listed outsourcing companies that have a grand portfolio of working with the blue-chip giants and A-series start-ups, just like yours.

So don’t hesitate to consult with the experts and choose the one that suits your business the best. If you still are lost, contact us. We specialize in providing the best suggestions and the best service as an outsourcing company.