Advancements of technology and the benefits of globalization has greatly changed the way that we conduct our business today. While business was mostly conducted within the borders of a country in the past, today we find that even the smallest business has suppliers and clients that work outside of the country.
One of the big industries that have sprung from this change in business methods, is business process outsourcing (BPO). Advances in communication technology have seen a huge increase in the setup of off-shore call centres that offer support and sales services to companies in the UK.
Business process outsourcing is a new way of outsourcing where a specific business process is contracted to be completed and taken care of by a third-party instead of taking on the costs and risks of doing it in-house.
Previously, it was mostly the manufacturing industry that made use of outsourcing – companies like Apple, for example, would develop their technology in America, but would outsource the manufacturing of hardware to companies in China. While doing this, they have been able to save a huge amount of money on manufacturing costs.
Business process outsourcing has grown from strength to strength, and according to Forbes, the revenue of worldwide outsourced services has grown steadily year-on-year – in 2000, the industry revenue was $45 billion and has since grown to just under $100 billion in 2012.
While business process outsourcing offers great benefits to companies, the real value lies in the jobs that are created in third-world countries where the call centres operate from. The economies of countries like South Africa, India and the Philippines have greatly benefited from offering these services and it really has become a win-win situation for both businesses within the UK, their clients and those offering the outsourcing services.