Turkey: The Hidden Gem of BPO, Where East and West Converge in Business Excellence

Introduction

Turkey is rapidly establishing itself as a key destination for efficient and effective BPO services, emerging as a leading player in the EMEA region with substantial growth potential. Combining exotic charm, rich tradition, cutting-edge technology, and modern facilities, Turkey opens doors for setting new benchmarks in outsourcing excellence. Its young, multilingual workforce, competitive labour costs, and supportive business environment further enhance the country’s attractiveness, making it an ideal location for global brands seeking high-quality, innovative BPO solutions.

Presenting a unique fusion of European and Asian business cultures, Turkey offers seamless access to both the EU and Middle Eastern markets. This strategic advantage enables efficient cross-time zone operations and convenient business travel. Turkey’s hidden treasures lie not just in its versatility and geography but in its commitment to high-quality standards, attractive operational costs, and a rapidly expanding talent pool. Whether the goal is to scale the reach, elevate customer experience, streamline back-office functions, or accelerate innovation through AI and automation, Turkey stands out as a competitive BPO destination. Industries like retail, e-commerce, gaming, healthcare, and finance are already reaping the benefits of this extraordinary landscape and there’s much more to uncover.

Major BPO hubs in Turkey include cities like Istanbul, Ankara, Izmir, and Bursa, each brimming with business amenities and vibrant energy. In these dynamic areas, companies effectively cater to global brands by offering a range of outsourcing services where excellence meets efficiency. Key specialisations encompass customer support, technical assistance, trust and safety, data processing, finance, and accounting. The industry has been growing year by year, a trend that is well-documented in numerous reports and statistics.

Outsourcing to Turkey: Unlocking Competitive Advantage

Turkey is a prime destination for businesses seeking BPO services, thanks to its youthful demographics, strategic location, and growing economy. With numerous advantages, it stands out as an ideal choice for both nearshore and offshore operations, ensuring effectiveness and excellence in service delivery.

1. Well-Qualified Talents

Turkey boasts a population of approximately 84.5 million, 68.13% of whom are between 15 and 64 years old, with a median age of around 30.6 years (Source: Statista). Additionally, the country is recognised as a notable talent hub in the region, with BPO professionals proficient in Turkish, English, German, Russian, and Arabic. This highly skilled workforce results from substantial government investments, promoting higher education and advanced training. For instance, in 2023 there were 204 universities in Turkey, including public and private institutions. In addition, by 2022, more than 20% of the population had a university degree or higher education qualification. Overall, the high literacy rates and linguistic versatility, along with a cultural emphasis on hospitality, diligence, and adaptability, enhance Turkey’s appeal as a strategic choice for businesses pursuing exceptional human resources.

2. Strategic Location

Turkey provides access to multiple markets spanning several time zones at the crossroads of Europe, Asia, and Africa, where diverse cultures intersect. This fosters seamless communication, efficient business operations, and convenient assistance with minimal time differences. Furthermore, Turkey’s strategic location offers a natural advantage and dynamic economic opportunities, enabling international companies to connect with various consumers across three continents—reaching around 1.5 billion people—successfully bridging geographical and service delivery gaps.

3. Cost-efficiency

Turkey offers an affordable business environment and attractive costs compared to many European and Middle Eastern destinations. This makes it a more budget-friendly option for foreign investments, with lower operational expenses, competitive salaries and a more economical cost of living. According to the Average Salary Survey, Turkey’s typical yearly gross salary is around 47,000 U.S. dollars. In contrast, it is approximately 78,000 U.S. dollars in Germany, 74,000 U.S. dollars in the United Kingdom, 84,000 U.S. dollars in the United Arab Emirates and 70,000 EUR in Saudi Arabia.

4. Infrastructure capability

Turkey’s advanced technology infrastructure is crucial for the thriving BPO sector. The country guarantees seamless service delivery with high-speed internet connectivity, sophisticated telecommunications networks, and modern facilities. The national transportation system, featuring world-class airports, extensive highways, and a robust logistics infrastructure, enhances accessibility and streamlines operations, making Turkey an increasingly attractive place where global brands can establish a strong foothold and nurture international business relations.

5. Innovation at First

Driven by government initiatives promoting digitalisation and private sector investments in AI, machine learning, and cloud-based solutions, Turkey rapidly emerges as a hub of innovation and a digital leader in the BPO sector. The development of Technoparks and R&D centres further underscores the country’s commitment to tech-focused outsourcing solutions. Additionally, the country is a member of the international intergovernmental network Eureka and actively collaborates with it, hosting initiatives such as Eurostar and Teknofest to encourage innovation, research, and development. Turkey also participates in the EU Framework Programmes for Research and Innovation, engaging in various projects to enhance research and technological development within the European Union. Technological progress is reflected in Turkey’s notable rise in the United Nations Global Innovation Index, where it has climbed ten places to 41st, just behind regional leaders such as Israel and the UAE. This upward trajectory highlights the country’s growing technological capabilities and potential to attract global businesses efficiently.

6. Turkey’s Economic Transformation

Turkey has made notable economic strides over the past two decades. In the early 2000s, sweeping macroeconomic and structural reforms helped close the income gap with advanced nations, reduce poverty, and curb progressing inflation. These efforts elevated the country to upper middle-income status and improved living conditions for many households. Although the country has faced further challenges, including the impact of COVID-19 and inflationary pressures, it is now experiencing a solid recovery. In the first quarter of 2024, the Turkish economy grew by 5.7%, driven by robust domestic demand, with growth projected at 3.15% for the year, according to Reuters. Today, Turkey is recognised as the 17th largest economy in the world, with a GDP of $1.024 trillion as of 2023, according to the IMF.

7. Legal environment

Turkey offers a favourable legal landscape for BPO operations, enabling swift company establishment procedures. Both foreign and domestic investors are treated equally under the same regulations, ensuring a level playing field. The legal system shares similarities with Continental Europe’s, providing familiarity for international businesses. With few restrictions on foreign ownership—limited to specific sectors such as media, education, and aviation—Turkey enhances its appeal as a welcoming investment destination.

8. Shared Values and Work Culture

A strong work culture in Turkey is significantly influenced by its multicultural environment, fostering collaboration, respect, and dedication. The diversity of backgrounds enriches the workplace, providing a range of perspectives that enhance creativity and innovation. Turkish businesses often prioritise relationship-building, cultivating trust and open communication among team members. Furthermore, the work ethic in Turkey is characterised by diligence and a commitment to excellence. Employees take pride in their endeavours, striving for high-quality results that align personal achievements with organisational goals. A strong sense of hospitality also permeates the professional space, reflecting the cultural norm of welcoming others and valuing their contributions.

9. Supportive Government Policies

The Turkish government actively promotes the BPO industry through various incentives, including tax breaks, investment promotions, and tailored economic policies to attract foreign businesses. The country boasts several free zones that provide companies with attractive conditions and flexible regulations, further reducing operational costs. Notable examples include the Istanbul Atatürk Airport Free Zone, the Bursa Free Zone, and the Mersin Free Zone, renowned for their strategic locations, unique support systems, and outstanding technological infrastructure.

10. Cultural Heritage and Natural Attractions

The intersection of Turkey’s rich cultural heritage and stunning natural attractions creates a unique environment that significantly enhances work-life balance and quality of life. Employees are encouraged to engage in outdoor activities, explore historical sites, and participate in local traditions, all contributing to their overall well-being. This blend of cultural immersion and natural beauty positively impacts stress reduction and energy renewal. As a result, companies benefit from a more motivated and productive workforce, ultimately driving success in the BPO sector.

Key Turkish BPO Hubs

While offering many extraordinary places, a few Turkish cities stand out as key national BPO hubs. Istanbul, Ankara, Izmir, and Bursa shine the brightest, providing ideal conditions for business. A talented workforce, modern infrastructure, a rich cultural scene, and numerous after-work attractions all contribute to a vibrant and productive environment.

1. Istambul

Istanbul stands out as a premier BPO hub in Turkey, strategically located at the intersection of Europe and Asia. This distinctive site, supported by robust infrastructure, facilitates high-speed data connectivity, making it a vital centre for tech development. The city has attracted significant investments from global giants like Microsoft, Google, and Amazon, signalling its potential as an emerging player in the outsourcing landscape. Additionally, Istanbul’s rich pool of multilingual workforce and accessible transportation links allure corporations desiring efficient customer experience delivery. Beyond its business advantages, Istanbul also offers a wealth of attractions for professionals to explore and unwind. The historic Sultanahmet district features iconic sites like the Hagia Sophia and the Blue Mosque, while the Grand Bazaar provides outstanding shopping experiences. Scenic Bosphorus cruises showcase the city’s stunning skyline, and the vibrant culinary scene invites visitors to unwind after a productive day.

2. Ankara

Ankara, the capital of Turkey, is rapidly rising as an important BPO centre thanks to its strategic location and innovative facilities. Additionally, the city boasts a well-educated workforce and second language literacy, which is crucial for delivering quality CX services. Ankara also boasts excellent connectivity, enabling seamless data transfer and communication. With increasing tech startups and significant investments from leading companies, Ankara is emerging as an important player in the global BPO landscape. Beyond its business environment, the Turkish capital offers professionals a rich cultural heritage and various attractions. The historic Anıtkabir, the mausoleum of Mustafa Kemal Atatürk, provides a glimpse into Turkey’s past, while the Museum of Anatolian Civilizations showcases the region’s extensive history. The city’s parks, such as Gençlik Park, offer relaxing spaces for leisure, and the vibrant dining scene invites visitors to savour traditional Turkish cuisine after a busy day.

3. Izmir

Izmir, located on the Aegean coast, is an emerging BPO hub known for its strategic position, vibrant economy and modern infrastructure. The city boasts a diverse talent pool, with numerous universities and educational institutions nurturing skilled graduates in technology and business. What is important is that Izmir’s scenic waterfront, rich history, and lively cultural scene provide ample opportunities for relaxation and leisure after work. The city’s blend of tradition and innovation creates a dynamic environment that appeals to both businesses and their employees.

4. Bursa

Bursa, historically significant as the first capital of the Ottoman Empire, has evolved into a prominent BPO centre in Turkey. The city is renowned for its strong manufacturing base and industrial expertise, seamlessly integrating with the growing tech sector. Bursa offers a well-developed infrastructure, facilitating smooth business operations and communication. With a focus on sustainability, the city is home to various green spaces and parks, enhancing the quality of life for residents. The combination of a skilled workforce, a supportive business climate, and numerous cultural attractions makes Bursa an ideal location for the BPO presence.

A Short History of Turkish Outsourcing

Outsourcing in Turkey began to gain traction in the early 2000s, leveraging the country’s strategic location and skilled workforce. Initially focused on traditional sectors like manufacturing and textiles, the industry quickly evolved as global demand for Business Process Outsourcing grew. The 2010s marked a turning point as the government implemented incentives and established free trade zones to promote the BPO initiatives. Today, Turkey’s outsourcing industry thrives, supported by a vibrant startup ecosystem and ongoing technological advancements, solidifying its position as a key player in the global BPO landscape.

Turkey in a Brief

Turkey is a transcontinental country that spans Southeastern Europe and Southwestern Asia, bordered by the Black Sea, the Aegean Sea, and the Mediterranean Sea. Officially, the Republic of Türkiye consists of 81 provinces, with Ankara as the capital and Istanbul as its cultural and economic centre. The country has a diverse economy characterised by modern industry and traditional agriculture, with key sectors including manufacturing, textiles, tourism, and technology. Founded in 1923 after World War I, Turkey was once the heart of the Ottoman Empire, home to many ancient civilisations that have shaped its rich cultural tapestry.