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Business Process Outsourcing Industry
Maraya Bien
Industry insiders point to many factors to explain why more and more businesses are opting to outsource.
First and foremost of course, is because outsourcing considerably lowers operational costs. An outbound telemarketing employee in the Philippines (one of the world's top call center outsourcing destinations) for example, receives a $200-$350 salary a month—a fraction of what their counterparts in the U.S. receives. For less than a quarter of what they pay their American or European employees, companies can get the same (and in some cases, even better) quality of work from Filipino, Chinese or Indian workers.
Another reason why outsourcing has become a popular choice among corporations in the developed world is that they allow companies to focus their resources on developing their core competencies. By outsourcing to an to inbound call center for example, a web development company no longer has to devote people to answering inquiries from clients or taking-in orders; its employees can spend their time on what matters most: further improving their products and services.
The large number of highly-qualified potential employees in popular outsourcing countries like the Philippines and India also contributes to the increase in the number of companies who subscribe to the services of business process outsourcing companies. In the Philippines for example, there is a large population of highly intelligent English-speaking individuals who not only meets the language-proficiency requirements of outbound and inbound telemarketing jobs, but also displays great politeness, patience and courtesy—virtues needed to be an effective call center employee.
The many perks governments offer to foreign investors are another reason why many companies have started outsourcing certain business processes abroad. To attract investors (particularly those looking to establish an outsourcing company) many governments have constructed and developed the infrastructure and technology needed to make the their country even more attractive to foreign financial backers. A company who wants to outsource the call center processes of his company to India or the Philippines for example, no longer has to worry about disrupting the flow of his company's transactions when he starts outsourcing. The infrastructure and system needed to keep his company's operations going smoothly is already in place and very well established.
So, is the global outsourcing industry headed for further growth or will it decline as certain groups start protesting the outsourcing vital business? Looking at the rate it's growing, experts can see nothing but a brighter and more prosperous future.
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