Over the last decade or two, Pakistan’s business process outsourcing (BPO) industry has emerged as a significant sector in the country’s economy. Of the different offshore information technology (IT) services large companies seek, Pakistan has become a prominent destination for BPO services, due to the cheap labour it promises. The BPO sector has seen substantial growth, driven by a combination of cost advantages, a young and educated workforce, and the increasing global demand for outsourcing services.
According to recent estimates by Statista, revenue in Pakistan’s IT services market is projected to reach US$2.46 billion in 2024, with BPO dominating the market, accounting for a projected market volume of US$0.85 billion. The overall revenue is expected to grow at a compound annual growth rate (CAGR) of 7.31% from 2024 to 2029, resulting in a market volume of US$3.50 billion by 2029. This growth trajectory positions Pakistan as a promising player in the global BPO landscape.
As the local economy continues to stand on shaky grounds and our ever flailing local currency anticipates further devaluation, many, including the IT ministry of Pakistan, believe that the BPO sector will be the saving grace of Pakistan and its economy.
Sounds too good to be true? Well, despite the transformative potential of the sector, it might actually be too good to be true if we fail to get our act straight. Hot on the sector’s heels is an AI revolution, which poses a serious threat of not only disrupting the BPO landscape globally and in Pakistan but also creating mass unemployment.
Is artificial intelligence (AI) a real and pressing threat and what can be done to safeguard Pakistan’s IT sector from going under? Profit explore. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
