Offshoring Boom in Asia-Pacific Despite Business Gloom

9 months ago John Diew

The Asia-Pacific offshoring market is defying the odds, projected to double in size by 2032 (USD 185.1 billion) despite a tough business climate, according to Knight Frank. This surge will fuel demand for office space (4.7-5 million sq m annually).

Globally, the offshoring market is healthy, reaching USD 544.8 billion by 2032 (CAGR 8.5%). While North America leads, Asia-Pacific boasts the fastest growth (CAGR 10.2%).

Why Asia-Pacific Thrives

Tim Armstrong, Knight Frank expert, credits the region’s ability to capitalize on global trends. Countries like India, Philippines, Malaysia, and Vietnam are leading offshoring destinations.

Companies are drawn to Asia-Pacific’s lower costs (nearly 70% savings vs. US) and its highly skilled, multilingual workforce.

Shifting Office Priorities

Armstrong notes a global shift in office space needs. Companies now prioritize sustainability, amenities, and flexibility.

Asia-Pacific: A Winning Solution

While confidence in the US office sector wanes, Asia-Pacific offers a solution. The region boasts premium, sustainable office spaces in city centers, aligning with companies’ net-zero goals.

Bottom Line

The Asia-Pacific offshoring market thrives despite challenges. Lower costs, sustainability, and a skilled workforce make it a prime location for offshoring expansion.