International Business Process Outsourcing - Should You Join The Bandwagon?
International business process outsourcing is generally referred to as the BPO industry. A process where technology vendors are used by foreign companies to do their jobs in developing nations, call centers, KPOs, and LPOs are all sub-sets of a business process outsourcing company.
Some of the common services provided by offshore business process outsourcing companies include backend service centers, payroll processing, medical transcriptions, help centers, help desks for technology, data entering, human resources, administrative services and many others are manifestations of this industry. Developed countries such as United States, United Kingdom, Australia, and other European countries outsource these jobs to third world countries such as India, China, Malaysia, Philippines, Bulgaria, and other east European countries.
The reason BPOs are so popular in these countries is due to the vast pool of English speaking population. Upon recruitment, the trainees are giving proper voice and process trainings for the job at hand before being put on the shop floor. The dramatic increase in the number of business processing outsourcing in India and other countries can be attributed to the very low cost of investment and higher returns that numerous companies are benefiting from now. On the other hand, developing nations also benefit from this because this business model creates a large number of jobs for their youth.
Business Process Outsourcing: this became a very successful business strategy way back in the 80s. Not only did it change the economy of the developing nations, but it also helped the developed nations in a big way. The transfer of non-core activities from the internal departments of the company to a foreign country that has a trained staff to manage these internal processes was a unique and financially viable option. While outsourcing decisions are mainly taken to reduce overheads and costs, they also help to save energy and thereby contribute in a healthy way towards the profits of the company. BPOs have given birth to a whole new world, a new culture, and new trends in developing countries. Despite the fact that outsourcing simply means organizing labor between two distant countries or organizations, today it has become a tidal wave consuming many nations and boosting economic and infrastructure growth in these vendor nations. Merits of business process outsourcing: Cheaper services, high quality, optimization of profits, and benefiting from currency differences are just a few of the merits of BPOs. Companies that offshore outsource business are also able to tide over the competition with relative ease as their financials become efficient to better manage competitors' tactics. The global economy has also benefited from this business model due to increase in productivity though quality may be compromised at times. Demerits of business process outsourcing: Facing much flak, outsourcing practices are often the focus of critics. Critics believe that outsourcing downgrades the quality of services and products and new products and services drawn in from an alien market and culture trend to undermine the high standards of quality expected from reputable companies in the home country. Some even believe that the security of the nation is at risk and thereby makes the nation vulnerable.
| 