Did you know?
The Philippines is the world’s best country in terms of Business English according to the Business English Index (BEI).
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. Originally, this was associated with manufacturing firms, such as Coca-Cola that outsourced large segments of its supply chain. BPO is typically categorized into back office and front office outsourcing.
BPO vendor charges are project-based or fee-for-service, using business models such as Remote In-Sourcing or similar software development and outsourcing models. This can help a company to become more flexible by transforming fixed into variable costs. A variable cost structure helps a company responding to changes in required capacity and does not require a company to invest in assets, thereby making the company more flexible. BPO also permits focusing on a company's core competencies.
ndustry analysts have identified robotic process automation (RPA) software and in particular the enhanced self-guided RPAAI based on artificial intelligence as a potential threat to the industry and speculate as to the likely long term impact.In the short term, however, there is likely to be little impact as existing contracts run their course: it is only reasonable to expect demand for cost efficiency and innovation to result in transformative changes at the point of contract renewals. With the average length of a BPO contract being 5 years or more – and many contracts being longer – this hypothesis will take some time to play out.
One estimate of the worldwide BPO market from the BPO Services Global Industry Almanac 2017, puts the size of the industry in 2016 at about US$140 billion.India, China and the Philippines are major powerhouses in the industry.In 2017, in India, the BPO industry generated US$30 billion in revenue according to the national industry association. The BPO industry is a small segment of the total outsourcing industry in India.The BPO industry workforce in India is expected to shrink by 14% in 2021.The BPO industry and IT services industry in combination are worth a total of US$154 billion in revenue in 2017.The BPO industry in the Philippines generated $22.9 billion in revenues in 2016,while around 700 thousand medium and high skill jobs would be created by 2022