BPO: What is Business Process Outsourcing?

    In the modern business world, business process outsourcing (or BPO) is a strategic decision to remain competitive rather than merely an option to reduce operation costs.  A highly competitive business market and increasing costs are factors that drive many companies to globally outsource business processes to offshore BPO vendors. Offshore business process outsourcing agencies facilitates and aids enterprises achieve business goals through growing productivity and boosted efficiency.

    BPO focuses on hiring an external or third-party service provider to execute non-core functions. These functions are IT-related activities namely application management and application development, data center operation, or testing and quality assurance.  As well as outsource financial and administration (F&A) processes, human resources (HR) functions, call center and customer service activities and accounting and payroll.

The Concept behind Outsourcing

    Offshore business process outsourcing or BPO is simply defined as a means of hiring a third-party or external organization located in an overseas country to execute and deliver certain business operations.  A competent offshore business process outsourcing agency enables a company to focus more on its primary business operations.

    Existing in a highly competitive market, it places a demand for companies to refocus resources on the core functions of their commerce and to tap outsourcing non-core processes.  Offshore business process outsourcing organization allow companies access to competent people, efficient processes and the right technology without straining time and financial resources.

    In the Philippines, there is a constant demand for offshore BPO agencies as multinational companies increasingly consider outsourcing as a strategic business tool.  Philippines remain to be a feasible choice for numerous reasons and the most compelling is the low wage cost and large pool of qualified English-proficient workforce.

    Offshore BPO agencies offer a dramatic reduction of cost thereby saving the client money at the same time guarantees quality output.   Internet communication technology is developing to be globally competitive that it paved the way for outsourcing.

Signs of Growth

    Offshore BPO agencies in the call center sector alone in a year has collectively reflected 100 percent growth reaching 80,000 call center seats in the year 2005 from 40,000 in 2004.  During the year 2005, the offshore business process outsourcing industry earned a little over US$2 billion in revenues and generated 2000 jobs.

    Philippines has so much to offer as an offshore BPO vendor with its steady resource of  competent workers, strategic business location, updated telecom infrastructures, investor-friendly government policies and incentives and other noteworthy advantages, experts agree that Philippines and its offshore BPO vendors pose serious competition to others in the region. Make a smart and strategic business move by exploring BPO and experience the competitive advantages it produces for your company.