Business Process Outsourcing - By: Justin Davis

Characteristic of todays business is its capacity to source out labor from a place that offers lower cost. This is apparently flourishing in places like the Philippines. US and European countries still lead in getting call center services from these countries. This can create a two way process of benefits.

What is a BPO or business process outsourcing? This is hiring another company to do business for you and in your behalf. The process goes on and on like a cycle.

What are the statistics that may give us a vantage idea about how the BPO business has been doing.

Lets take a look.

India stands as the largest BPO offshore source of labor accounting to 5-6% of the total BPO market. However, of the offshore segment, India commands a 60% market share. This has already decreased from almost 70 percent last year due to emerging smaller markets that have successfully taken a chunk off the market India enjoyed last year. The Philippines and South Africa have become Indias stiffest competitors. While the industry is expected to continue to grow, India is expected to experience decline in its market probably due to the English skills that the Philippine market has been collectively exuding.

Filipinos second language is English and its medium of instruction in its academic curriculum is English thus, their proficiency. This posts a threat to the Indian BPO market. However, the total size of the BPO industry last year was at a whopping $122 - $155 billion, by far one of the largest emerging industries. With the projected increase in the market, these figures can still go higher. For those thinking about trying out in the industry, a handy suggestion is that there is still room for more in this relatively large market. The rising demand for the IT services, more growth can still be expected.

China is the worlds largest country in terms of population. It also has been trying out in the BPO market even from a very small base. In the coming years, China may also take off a bigger chunk in the market and may have the chance to lead.

Versatility and adaptability are the key elements in the industry. Companies needs may vary from time to time but most need efficiency of services and delivery of results on time and within standard. There may be risks involved but with money pouring in from this multi-billion dollar industry, who can resist the venom that BPO mania may bring.

About the Author

With available vr business broker, the heydays of business may just be around the corner. Although there are a lot, always look for trustworthy business broker so that your business may be seeing glorious days.

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