Business process outsourcing (BPO) Companies-the Latest Global Business Trend

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Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider.

The world of business has dramatically changed and  continues to rapidly change every single day. What we know today can only last for a few months or years, if we are lucky. What we know yesterday might as well be considered a thing of the past tomorrow. That is how fast the business world is changing. So companies all over the globe have to learn to adapt and do it fast.

Before, the business trend is to be a jack-of-all-trades. To be successful, a business has
to have everything a client needs in one roof-a one-stop shop. And companies of olden times try to do just that.

Hire all the kinds of personnel they need for every department in their company. However, that is a thing of the past now. The economic market today requires
specialization. Consumers want to have every product or service tailored to their particular need. Consumers don’t want generic products anymore.

They want special treatment and the best of quality service they can get. So, having everything under a company’s roof does not seem useful anymore. Keeping
all business processes under one roof now proves not only to be costly but impractical as well.

This is because monitoring each and every one of them to ensure the best quality is served and tailored to every client need has become tedious and almost
impossible. Keeping experts in-house is also proved to be expensive in the long run.

The need for specialization and focus on the company’s real core business has spun the trend of hiring Business Process Outsourcing companies, or what is more popularly known as BPO. Business process outsourcing companies have now sprouted and
proliferated in countries where labor cost is not so expensive, such as China, India and the Philippines, and lately, the Middle East.

BPO companies in these countries and region provide services to bigger, more often multi-national, companies that want to focus on their core business processes so they just delegate generic tasks, or processes that are of lesser importance, to outside
provider or supplier of services.

The philosophy of companies these days is to “…do what they do best and outsource the rest.” And it is a very sensible philosophy at that. And more and more
companies are catching on it.

The list of services that are most commonly outsourced include, HR solutions, Accounting and Financial Services, Customer Care Services, Call Centers, IT
Help Desk Services, Marketing tools and solutions, and other nitty-gritty details that most companies want to be free of.

These are necessary business processes-yes, that is true. However, companies now realize that it is more practical to delegate these tasks and focus on sales or production, or whatever their company is all about.

In India and Philippines, more and more BPO companies are establishing business centers in their territories, capitalizing on the affordable workforce cost and the abundant supply of highly-trained trained professionals. The Middle East has also become one of the newest hub for BPO companies for its multi-lingual populace and its strategic location, giving it a favorable time zone. Added attraction for this region is the possibilities for oil investments and business expansion opportunities.

In India, you can find the following successful business process outsourcing companies: Accenture; Convergys; HCL BPO; Genpact; GE India; IBM Daksh; TCS BPO; Transworks; Wipro BPO; and WNS Global Services. Meanwhile, the Philippines’ list of BPO companies includes companies from the United Kingdom, the United States and Japan.

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