Outsourcing is an effective business strategy that allows companies to function in a cost-effective manner. It doesn’t only reduce costs but also minimize business risks while improving core competencies.
The Business Trend
Business process outsourcing (BPO) plays a vital role in advancing business growth and success. It is a unique strategy that uses outside resources while improving business focus and operation details. Thus, extensive solutions are used to streamline operations, ensure compliance, productivity, and round-the-clock service to clients. Its popularity has been apparent in Asian and African countries where there is cheaper labor cost. According to research, more than 3.3 million jobs were outsourced in those countries. As a result, Americans are concerned with its impact on the country’s economy and employment opportunities as outsourced business transactions skyrocket to more than 10.5 million in value, resulting to more than 15 million jobless Americans.
Yet despite criticisms, the many benefits of off-shore services were able to make up for its drawback. In fact, a research from McKinsey Global Institute shows that outsourcing delivers large and measurable benefits to US economy. Besides keeping a company globally competitive, its growing demands also intensify the demand abroad for US-supplied equipment such as computers, telecommunications hardware, software, and other marketing services. This creates about $1.12 to $1.14 economic gain for every $1 outsourced expense. Among the most outsourced services are:
- Customer support
- Tax preparation
- Web design
- Computer programming
- Data entry
- Legal services
- Research and development
- Healthcare services
Where to Outsource?
Business outsourcing is described as the process of moving jobs overseas. Thus, finding the right outsourcing company is equally important to sustain the changing demands of many industries. While India, particularly, in Bangalore, has emerged as the BPO capital of the world, many countries are taking great heights in providing excellent services. Among these countries are:
- Philippines – The country’s familiarity with Western culture and proficient communication skills are the foremost reasons why it becomes one of the most sought-after BPO destinations. Moreover, it is home to a large talent pool of equally competitive and skilled workers who have exceptional work ethics; thus, providing quality service. The country is also known for web designs, software development, and animation services.
- China – China is considered an upcoming player in the BPO market. With more than 1.3 billion population, the country takes pride in providing greater human resources among other countries. Moreover, it is taking a substantial amount of India’s market share with more than 30 percent growth each year.
- Australia – Australia is also a top BPO destination with its highly developed infrastructures, distinctive language and accent, and economic environment. Its cultural compatibility, security, and privacy are among the top considerations why many trust local firms.
- Indonesia – Aside from being popular as an agriculture country, Indonesia is also fast becoming an IT service provider. According to analysts, its industry will grow by 15 percent through 2014. Thus, American companies are impressed with the country’s reputation of providing quality IT services.
Indeed, BPO companies have provided an innovative way of surpassing economy’s unpredictable trend. Not only does an outsourcing company create job opportunities, more so, a global business impact.