Saudi Arabia Manpower Outsourcing Market to Reach US$ 5,487.3 million at CAGR of 10.7% in 2028

Saudi Arabia Manpower Outsourcing Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Type (Technical Staff, Sales & Marketing, Office/Admin Support, and Others) and Industries (Manufacturing, Retail, ITES & Telecom, Food & Beverage, Hospitality, BFSI, and Others)

Publication Month : Mar 2022

  • Report Code : TIPRE00004114
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 90
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The Saudi Arabia manpower outsourcing market size is expected to grow from US$ 2,694.2 million in 2021 to US$ 5,487.3 million by 2028; the Saudi Arabia manpower outsourcing market share is estimated to grow at a CAGR of 10.7% during 2021–2028.

Saudi Arabia is progressing at a rapid rate in terms of industrialization and commercialization in the recent years. Despite of economic turmoil in the past caused by the disruptions in oil industry, the country has managed to attract several other industries which have helped the Kingdom to rebuild its economy. Additionally, the establishment of several international companies in the region has facilitated the country to rebound from the turmoil. Various industries functional in the recent times include manufacturing, retail, IT & Telecom, food & beverage, BFSI and hospitality among others. Increasing number of industries demand increased number of employees to operate smoothly and increase the production. In addition, the less willingness among the Saudi youth to work for private organizations at a lower wage has negatively impacted Saudi labour workforce composition. However, this shortage has been overcome by the expatriates or the foreign nationals, and in the present scenario, the expatriates dominate most of the industries in Saudi Arabia. As a result, the Saudi government has implemented Saudization, a part of Saudi Vision 2030, the country’s most ambitious program. The Saudization program aims at offering jobs to skilled Saudi youths and the unemployed in various sectors. This program is anticipated to create many jobs in the forthcoming years. The burgeoning demand from the consumers related to different industry is compelling the companies to invest substantial time and labour to hire professionals of different expertise. However, without the appropriate level of knowledge and expertise on-board, it is harder for any organization to function properly. Attributing to the time and intense amount of deliberation required to hire the suitable candidate, several companies are outsourcing their recruitment procedures, which is catalysing the agencies operating in Saudi Arabia manpower outsourcing market growth.

Impact of COVID-19 Pandemic on Saudi Arabia Manpower Outsourcing Market

Saudi Arabia is adopting transformative digital technologies in various verticals in a bid to improve the socio-economic conditions of the country. However, due to the COVID-19 outbreak, the implementation of stringent measures such as lockdowns, business shutdowns, and travel bans aggravated the economic problems of the Saudi Arabia. Hence, the prevailing economic issues with the outbreak of COVID-19 have had impacted the growth of the Saudi Arabia manpower outsourcing market during Q2 of 2020. The sudden onset of the COVID-19 pandemic has affected the demographic and socioeconomic balance in Saudi Arabia, where the labour market is transforming. The government had already introduced numerous steps to support small and medium enterprises. The COVID-19 pandemic has posed distinct challenges for both employers and employees. Many unskilled migrant workers continue to leave for their home countries due to unemployment or skill mismatches. On the other hand, the employers in the country exercised cost cutting activities which led to reduce in manpower. Thus, coupling both the parameters i.e., reduction in employee count and migration of workers to home countries reflected severe implications on the Saudi Arabia manpower outsourcing market players in the country. This had negative impact on the Saudi Arabia manpower outsourcing market during till Q3 of 2020. However, with the upliftment of lockdown measures and reopening of industries, the demand for manpower increased, which reflected positive revenue generation stream among the Saudi Arabia manpower outsourcing market players, which ultimately resulted in marginal positive Saudi Arabia manpower outsourcing market growth in 2020.

Saudi Arabia Manpower Outsourcing Market Insights

Expanding Hospitality and IT Industry

Fuels Growth of Saudi Arabia Manpower Outsourcing Market

Saudi Arabia is one of the prime economies among the Middle East countries and has a huge labour force which is growing at a decent pace. The country houses a number of industrial sectors ranging from manufacturing, retail, information technology, hospitality, and educational institutions among others. The Kingdom’s hospitality industry is experiencing substantial growth in recent years, and the same is expected to boom in the coming years. This is majorly due to the growing business, religious and leisure tourists and also the diversification of the country’s economy through the Kingdom’s initiative Vision 2030. The Vision 2030 plan and the National Transformation Program have shown that the government is making coordinated efforts to not only diversify from oil dependence but create meaningful changes to the traditional ways of doing business. This has resulted in an increase in investment in the hospitality industry in the country which has given rise to a number of hotels. Riyadh and Jeddah are the country’s major cities to witness up rise in a number of 5-star hotels in recent years. The corporate markets and business tourism remain the most significant sources of demand for hotels in Riyadh. While internationally branded hotels remain the preference of corporate guests, there have been increasing instances of major corporate entities renting units within residential compounds for their employees.

Type-Based Saudi Arabia Manpower Outsourcing Market Insights

Saudi Arabia manpower outsourcing market is categorized on the basis of type as technical staff, sales & marketing, office / admin staffs, and others. The others segment includes teachers and training development individuals, and nurses and medical staffs. Technical staffs are the most demanding segment in the Saudi Arabia manpower outsourcing market as the manufacturing sector, hospitality sector, retail sector and hypermarket and supermarkets are constantly increasing in the region. Attributing to the fact that, the private sectors and the Saudi government are extensively emphasizing on advanced technologies, the demand for technical staffs has been utmost important.

Industry-Based Saudi Arabia Manpower Outsourcing Market Insights

The Saudi Arabia manpower outsourcing market analysis on the basis of industry is divided as manufacturing, retail, ITES & Telecom, food & beverages, BFSI, hospitality and others. The manufacturing industry has flourished immensely over the years in Saudi Arabia. A wide range of manufacturing industries have set up their production plants as well as offices in the country. Industrialization in Saudi Arabia has experienced steady development and large number of distinguished achievements over the decades. The support from the Saudi government has helped the manufacturing companies to achieve mutual growth in terms of economic and strategic goals.

Company Profiles

  • Ajeets Management & Hr Consultancy
  • Adam Recruitment
  • PROVEN SA
  • Talents Hunters
  • TASC Outsourcing
  • Advanced Electronics Company
  • MASSADR
  • Knowledge Group
  • Alliance Recruitment Agency
  • NES Fircroft
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Type and Industries

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Saudi Arabia

  1. Ajeets Management & Hr Consultancy
  2. Adam Recruitment
  3. PROVEN SA
  4. Talents Hunters
  5. TASC Outsourcing
  6. Advanced Electronics Company
  7. MASSADR
  8. Knowledge Group
  9. Alliance Recruitment Agency
  10. NES Fircroft

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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